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LEGACY PARTNERSHIP - Coggle Diagram
LEGACY PARTNERSHIP
RISKS
Market uncertainty
(where will the market be in 2 years?)
Interest rates
Builder relationship
Land cost
Labor costs
Material costs
RISK MITIGATION
Having 30yr fixed rate debt ready after construction
Being able to rent if market is too soft to sell
We live in one of the units
Non-recourse financing
Builder splits down payment with me to align interests
Invest no more than we're willing to lose
IDEAS
Is this a business I want to be in?
How can I invest more actively while taking much less risk on the first 1-3 deals?
How can I get to know the builders before entering into a partnership with them?
Can I do prefab houses on these lots to cut development costs?