A real-estate financing technique that stacks capital from friends, family, personal credit, and a bank loan to raise $200,000, then brings in a buyer who puts down $1.75 million to fund construction and finishes while the seller retains control of the structure.
Are you in the deal room? You can see here how I find different sources to get the money covered. When I get to the $200,000, I can use it from here or in the $200,000. What I'll do is I might, I might sell it like over here. What I might do is find the buyer. And what the buyer is going to do is he's going to hand me an offer for 175% more, which is $1.75 million. Like, so this buyer is going to hand me $1.75 million from his down payment. I'm going to come in and do the finish work because I'm going to let him pick the tile. We let them pick the color of the wall paint. What kind of roof shingles do you want on it? Blah, blah, blah. The finished stuff, right? They don't get to pick the structure because they like what I already built. They like the layout, they like the beds, blah, blah, blah. Right? So this is my capital stack. My friends and family, my credit. I got a bank involved, and then I was able to pull the buyer to the table, build up a capital stack.
