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Advice on Raising Money for a New Development

Austin Bentz

New Forum Member
Sep 8, 2023
Currently have land secured and some initial funding for a new development.

Land can accommodate 6-7 32-unit rental apartment complexes. The plan is to begin with 2 buildings, and look at add in the future as demand for the area grows and more capital becomes available.

The land owner wants to contribute the land as equity to the project, and we have a few initial investors totaling about $400K in cash. Based on some of the modelling we would feel more comfortable beginning the build with $1M in committed capital. I am wondering what avenues others have used to source capital for builds like this and if there are any recommendations or tips.

The project is solid, the demand for the first two buildings is there, but we feel as though we've tapped as much equity as we can from the small group planning the build without sourcing outside equity capital partners.

Any advice, leads or guidance would be appreciated.
Last edited:


Inspired Forum Member
Dec 31, 2015
Consider shopping the deal to a reputible local developer or gc. They may be a synergistic partner that adds value, helps de-risk the investment and you could learn from.


Inspired Forum Member
Aug 30, 2018
Hi Austin. If the land owner owns the land, that accounts for some of the equity needed by lenders for a construction loan. Check to ensure your $400K partners are all acredited unless they are family. Here are some suggestions:
1. If you sub-divide the land, you can partner up with different builders who may have access to 3-5x working capital to build.
2. Use an exempt market dealer
3. Use loan sponsors
4. Expand your $ pool, center of influence

Good luck
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