I'm building a luxury, 10 unit, residential town home development in
Coeur D'Alene Idaho. My company requires private equity in order to
fulfill the
lenders requirement for 20% developer equity in the project before
they'll fund. The project is small and will be completed in 9 months
from ground breaking to open house.  What "return" do I offer my
investors considering the short-term investment risk? This is my first
development but I've performed extensive research, I'm very familiar
with the local market conditions and I?ve personally invested $200K in
the project. The approximate profit from the first phase of this
project is $1M.

I know a guy in the UK that does smallish developments.

He raises finance from private banks
- from what he has told me, the terms are onerous
- but he just factors it in as a cost

I used to do finance for a small company that used short term private
funding.  Our deal was rather rotten, but it might be a starting point
to think about.  We paid:

4% up front
12% annual rate interest
1% of the origional loan amount each 90 days if the loan wasn't repayed in full

email r.nair@cox.net
They have the best deals for funding if not dealing with the banks. I
used them before on two deals.

Thank you for all of your feedback. I'll contact r.nair@cox.net and
see what they have to say.

We currently have a bank lined up and ready to go, but we still
require a third party or lender/partner to come in with an additional
$400K to fulfill the commercial lenders 20% equity term.

Thanks again.
-john