Expert: Brian Bocchieri - 10/15/2009

Question
Hi Brian -

I'm interested in starting my own business a daycare - and it requires building and land development.  Of course my primary interest is the business, but obviously need the building/land!  In order to come up with the equity requirement for our bank loan I must seek out investors for the building and land.  I've heard I can setup an LLC to help with this - but have questions.  I'm assuming investors want to see what their monthly return would be (ie from net rent) and exit strategy as well as some type of reduced risk on this investment.  Given this is different than offices/malls regarding lease - any guidance is much appreciated!!

Answer
Hello Michelle

I am guessing you are not going the franchise route like Kindercare, Goddard school or others.  
You maybe able to research these business models to create benchmarks for your organization.
You will be able to customize these numbers to fit your leasing arangement.  Most of these franchises use investors to purchase the land and builing then lease it back to the franchisee.
I would think this would be your best option.  I hope this has helped.  Please update me on your sucess.  

Wishing you all the best and much success.

Brian Bocchieri