3 Tips to Secure Funding on Your Next Real Estate Project

Securing funding is the backbone of any successful development project, and with the right approach, you can capture investor interest and build trust in your project’s potential. Our team has compiled three key strategies to help you secure the funding needed for your next real estate development project:

1. Have a Solid Feasibility Study

Investors and lenders will want to see a well-researched feasibility study that demonstrates the viability of your project. This includes market demand analysis, competitive landscape, target audience, revenue projections, and expected occupancy rates for hotels. Highlight the unique selling points (USPs) of your development project, such as location advantages, innovative design, or differentiated services that set you apart from competitors. A thorough feasibility study backed by data helps build confidence in the project's potential success. Note, if there are any negatives, answer questions before they are asked, or you leave the reader to think, "Why wasn't this addressed?".

2. Create a Pro Forma Financial Model with Clear ROI

Create a detailed financial model that clearly outlines the projected costs, timelines, revenue streams, and return on investment (ROI) for investors. Break down of recurring capital expenditures (CapEx), operating expenses (OpEx), and potential income sources such as room rates, food and beverage, and event hosting. A well-structured pro forma that illustrates when investors can expect to see returns and the level of those returns is crucial. Be prepared to demonstrate how the project aligns with current market trends, such as an increase in the demand for extended-stay hotels in areas experiencing high economic growth, which could positively impact future profitability.

3. Build a Strong Team and Leverage Relationships

Securing funding often depends on the credibility of the team behind the project. Ensure you have an experienced team that includes architects, contractors, legal advisors, and hotel management professionals with a proven track record in successful projects. People are often betting on the team above all else. Additionally, leverage relationships with established lenders, investors, and brands or operators who can strengthen your case. Highlight any partnerships or joint ventures with reputable names that could mitigate risk and reassure investors that the project will be executed with expertise and precision.

By combining a well-prepared feasibility study, a compelling financial model, and a strong, experienced team, you position your project for successful funding.

From Grocery Store to Fitness Center (in Just 7 Months)

This month, we celebrated the opening of our first VASA Fitness in Racine, Wisconsin!

After being awarded the general contractor role for this project, our team went full steam ahead to convert this grocery store into a fitness center in just seven months. We’re grateful for our incredible trade partners and our project manager, Karter Lenning, who embraced the challenge and delivered outstanding work under a tight deadline. Best of all, this project marked the start of a great partnership with the amazing team at VASA.

Check out the transformation video to see how it all came together!

Construction Input Prices Down .09% in September

Construction input prices dropped 0.9% in September, with nonresidential input prices following the same trend, according to an analysis by Associated Builders and Contractors. Key contributors to the decline were a sharp drop in crude petroleum (down 16.7%) and unprocessed energy materials (down 12.6%), though natural gas prices rose slightly. ABC Chief Economist Anirban Basu credits lower oil prices for the decrease but warns that rising global shipping costs and supply chain issues may drive material prices up in the coming months, putting pressure on contractors’ profit margins.

My Place Introduces New Prototype Introduce the My Place 3.0 Prototype

My Place Hotels has introduced a new four-story, 71-unit prototype aimed at offering flexibility and cost-efficiency. The exterior design incorporates both pitched and flat roof options, allowing for adaptability to meet local preferences or regulatory requirements. The prototype also includes customizable exterior finishes and masonry choices.

Developed through discussions with stakeholders, the new design is intended to benefit franchisees by increasing availability and reducing time to market. Additionally, My Place is launching the My Place Business Suite, a 470 sq. ft. room designed for business travelers or small families, which aims to increase revenue through higher average daily rates and upsell opportunities. Existing prototypes will also be updated, with several installations of the new model expected in 2025

”It’s not a complete change or an overhaul to what we’re doing. It’s just a level up of the product that we’ve been really successful with.” -Ryan Rivett.

Looking to build? Let’s talk!

Jesse Etherington

(641) 257-9286