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  1. #1
    Soso is offline Junior Member
    Join Date
    Aug 2009
    Posts
    11

    Investment questions

    Hello everybody, my name is Soso, I'm from Georgia (Country, not state) and I'm 20 years old. My current location is: China.

    Well, everything starts from my friend's offer. It's about investment! My friend got huge building in one of Georgian cities and would like to repair his building, but he needs money for that. So case is about finding Investor to repair this whole building, after what they will be able to do anything (Hotel/Offices).

    So why I'm interested in this? I want to make money ofcourse!
    My friend and me have agreement that he will pay me quite big amount if I will find investor. With all ensuing consequences I need your help !

    Here are my questions for now:
    1) What kind of companies are more priorited for this kind of investment?
    2) How should I propose this subject?
    3) What should I foresee before doing everything this?
    4) If I'll find investor, what is the % they must give me?
    5) What is the standard condition in this kind of contracts?
    6) If you got enough time, please describe whole process

    Thanks!

  2. #2
    ZingerIntl is offline Senior Member
    Join Date
    Sep 2008
    Posts
    248
    Quote Originally Posted by Soso View Post
    Hello everybody, my name is Soso, I'm from Georgia (Country, not state) and I'm 20 years old. My current location is: China.

    Well, everything starts from my friend's offer. It's about investment! My friend got huge building in one of Georgian cities and would like to repair his building, but he needs money for that. So case is about finding Investor to repair this whole building, after what they will be able to do anything (Hotel/Offices).

    So why I'm interested in this? I want to make money ofcourse!
    My friend and me have agreement that he will pay me quite big amount if I will find investor. With all ensuing consequences I need your help !

    Here are my questions for now:
    1) What kind of companies are more priorited for this kind of investment?
    2) How should I propose this subject?
    3) What should I foresee before doing everything this?
    4) If I'll find investor, what is the % they must give me?
    5) What is the standard condition in this kind of contracts?
    6) If you got enough time, please describe whole process

    Thanks!
    I was totally expecting you to ask for millions and millions but... Good Questions. Start off by deciding what it is you want to do with the building. Good advice for everyone... make sure you ask for more than you need the first time around, investors do not want you coming back asking them for more to complete the first job.
    answers
    1) Most likely a local company that lends construction loans against real estate. You see, a construction loan is a loan against what the building WILL be worth not what its worth now.
    2) To ask for this money is going to take at very least a 3-5 page executive summary. With projections on what your office suites will rent or sell for, how many you will have, what kind of profit it will produce, what kind of interest rate you will then be able to afford to pay on this loan. and many other aspects of a big venture like this.
    3) All my advice may be wrong if you are looking for funding in china, because china is very different from USA. Foresee the fact that you will need to take this dream to a design/engineer firm, pay them hundreds of thousands to make you up your design, then to a construction company to give you a quote on what the material and labor are going to cost. So I hope your friend realizes it will take a significant amount of cash to start this in motion.
    4) you should get at least 5% of funds raised.
    5) Standard condition is,
    I, _____your friends name___, will pay _______your name_____ 5% of all rounds of funding that you can acquire. Go to a lawyer or look up a fund raising brokers agreement online.

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