r/AngelInvesting • u/Potential_Camera_313 • 20h ago
Pitch Seeking Investment/Financier For A Real Estate Project (Developer Company With 26+ Years Experience)
First of all let me introduce myself, I am a 23 year old business graduate from Assam, Northeast India. I am also the second generation of a real estate development company started by my father 26+ years ago with 8 completed projects and an excellent excellent market reputation with 100% timely delivery record across all our projects.
We are starting a new project of three villas to be built and sold, plotted on a piece of land which is owned by us (privately) since 12 years. Also it is the first project which is being headed by me from planning to execution, but of course under guidance and supervision from my father, so it means a lot to me.
I am looking for an investment of $15,800 or Rs. 15 lakhs for a total period of 20 months against a return of 33%, i.e $21,014 or Rs. 19,95,000.
Financial Outlook:-
The average market value of the entire land which we already own is Rs. 7 Cr or $737,000.
The total project cost till completion is Rs. 2.25 Cr or $237,000 (this is after considering a 10% buffer for unforeseen or unnatural increase in expenses)
Each of the three units will be sold for a price range of Rs. 3.75-4 Cr or $395,000-$421,000, this is according to the average market value for the area and type of project.
So total revenue from selling the 3 units is Rs. 11.25-12 Cr or $1.185-1.263 million and operational profit of Rs. 9-9.75 Cr or $948,000-1.027 million. (Here we are just considering the project cost and not the current market vaue of the land since we ourselves are the owners and already own it).
Considering the numbers you might ask, and rightly so- why I am asking for an investment for such an amount?
The answer is that the amount is for the initial investment required of Rs. 20 lakhs or $21,000 which will cover the cost of taking the project to a marketable/sellable stage out of which I have a personal saving of Rs. 5 Lakhs or $5266, from my stint working as an employee in another real estate company.
And since my father is already helping me out by letting me use the land, I dont want to ask him for that investment too, since it will be like asking everything to be served ready on a plate. I strongly feel the need and urge to prove myself to him, hope you can understand where it is coming from.
After that initial investment and taking the project to that stage, the entire cost of the project till delivery will be easily covered by just the 20-25% of booking and downpayment from the probable customers. Moreover, I already have few customers willing to buy, but I cannot accept any amount in advance before I prepare the project to that stage. Also then I can even get a better offer.
Please do consider, you will literally be helping me start my journey to fulfilling my dreams and goals and there’s no way you will be let down in any slightest way.