Joint Venture Development Financing

Worry Free Option 

This particular Development Financing is designed for the individual who owns a chunk of land on the beach which would make an excellent site for a Resort. Typically the land owner does not either have the time or the experience to organize or manage the construction of a resort, but still has the desires to build one. 

In this program the land owner will subordinate the land to the joint venture partners. The Joint Venture Partners will secure the financing, oversee the development, flag the
hotel / resort and the land owner will not have any financial liabilities on the note. 

In exchange for providing the land, the JV partners will do an equity split with the land owner. This split will depend on a few factors but it is typically a 75/25, 70/30 or 60/40 with the land owner earning the smaller percentage for providing the land. 

The Investment Partners typically entertain these projects in the United States, Central America and the Caribbean Islands (except Cuba). This program has a very high rejection rate because they will only entertain the highest quality locations to achieve the highest possible success rate once developed. 

Some of the Guidelines / Terms of the program: 

• Subject Property must:
          A. Be located on a Beach
          B. Be in close proximity to a major airport
          C. Must have access to potable water and electricity
          D. Have enough land to support a Resort with multiple amenities like golf,  
              Marina, beach, etc.
• The client needs to already own the land, but can have a lien against it
• If the land owner has already had a Resort Concept Developed, the JV Partners will consider it. Everyone sits on the same side of the table in this relationship.
• The land owner is responsible for all fees and costs leading up to the closing. Once a closing is initiated, then the loan will pay for all costs moving forward. Typically these "fees" incurred by the land owner will be between $50,000 and $100,000. 
  
  A basic breakdown of these fees are:
  
       * Administration Fees
       * Travel Expenses for JV Representative to visit the subject property
       * Legal Expenses
       * Title Searches
  
• Before any "fees" are collected, information on the subject property is reviewed and studied by the Investors. The site location is analyzed, the surrounding area is analyzed and the quality of the land owner is analyzed. If the investors like the location and everything about it, they will then move forward with a proposal to start the due diligence on the development. At this point a formal agreement is drawn up for the Land Owner to review. Also during this process, we usually have a few conference calls to discuss the details. 

Information that the Investors need to perform an initial review of the project are: 

• Aerial Photos of the subject property and the surrounding area
• A letter explaining how potential visitors will arrive at the subject property, starting at the nearest major airport
• A listing of what amenities are in the area of the subject property
• How much land the subject property encompasses (Acreage, Hectares, Etc)
• A letter listing what the process is and time frame for gaining entitlements / permits to development the land.
• How many feet of beach frontage does the subject property sit on.
• Is the subject property accessible by major utilities?
• If the property has a lien and for how much and who is the lien holder.
• How long have you owned the land?
• If you have a Development Plan in place, we would need copies of the documents

The more details we are able to collect on the subject property the higher the odds that the Investors will take an interest in the property. The Investors review 6 to 8 projects a month and have a very high rejection rate because they want to make sure that any project they agree to finance and develop becomes a success. 

If you would like more information, please contact:

The Investors will NOT buy the land or compensate the land owner financially until the project is completed and is bringing in a profit. Nor will the Investors entertain offers of "Land for Sale" by Real Estate Agents.

 

Sincerely,
Sean Allen
Skype: sean.allen5
www.InternationalFinancingSolutions.com

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