| If you are buying property i think you would be in a much better position if you looked for a lot small seed capital say 100-200 thousand. Then get financing from the bank. If the property is good quality, and you are able to get it at a bargin price then you shouldnt have much difficulty getting a loan to cover that cost. There are a couple of reasons i say this
1. A bank is more interested in investing in a property for your business then an individual investor.
2. You will pay a much lower equivelent interest rate on a bank loan then that of private capital. I think many investors who put money into new small businesses are not looking for 8 to 10 % return per year but more like doubling there money in 2 to 3 years if possible.
Another option may be to have a small IPO to raise the 3 million by say selling 25% of the shares, yes this values the company high but if you play the cards right you shouldnt have much trouble raising that capital and you have avenues to draw more capital by selling more shares at a later date. |