JCM Development identifies a development opportunity that fits its target project metrics.
JCM Development negotiates with seller to get best terms possible.
JCM Development works to acquire the project.
PROJECT IDENTIFICATION
JCM INVESTMENTS
The Development Process
1
JCM Development retains the necessary professional services (architects, engineers, etc.) to design the project and work toward acquiring Zoning and Building Permits.
DESIGN/PERMITTING
2
JCM Development works with one of its banking partners to obtain a construction loan. The construction loan will typically fund 75%-80% of total project costs.
JCM Development and its investors will contribute capital to make up the remaining 20%-25% required by the bank. JCM Development will personally guarantee the bank loan.
BANK FINANCING
3
JCM Development looks for private investors to invest in the project as either equity partners or loan with interest payments.
JCM Development targets 20%+ ROIC (return on invested capital) for its private investors.
PRIVATE INVESTING PARTNERS
4
JCM Development works with its real estate partners to sell/rent the completed project.
Returns to investors will be distributed based on the specific deal structure.