JOINT VENTURES
Mountain Real Estate Capital and Homebuilder form a joint venture to acquire the improved lots in bulk, with Homebuilder required to fund no more than 10%-20% of the equity requirement. Homebuilder then arranges for vertical construction debt and bonding, builds the houses, and doesn’t pay for the balance of the lot cost until the homes are sold. As such, no additional equity will be required from Homebuilder related to the lot purchase. Mountain Real Estate Capital and Homebuilder then share land and house profit commensurate with their respective investment, guaranty, bonding, and construction management obligations, and the Homebuilder will also receive standard development fees. |
LOT OPTIONS
Mountain Real Estate Capital will purchase and land-bank the improved lots, and then sell them on a scheduled take-down basis to the Homebuilder based on projected absorption.
Mountain’s ability to quickly purchase bulk lots on an unlevered basis through its billion dollar opportunity fund results in purchase prices adequately sufficient to afford both an acceptable land and house margins to Mountain Real Estate Capital and the Homebuilder. Mountain’s experienced investment managers are located in and familiar with all major markets. Call us with your capital needs and let us quickly offer creative solutions for our mutual benefit.
For additional information on these programs, click here. |
