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Contract For a Build to Suit
         
 

In most leased space investments, the builder provides the basic building and the leaser is expected to pay to modify this space to serve the purposes they intend. In a build to suit investment the builder carries the expense of the daycare build-out rather than placing this cost upon the investors. The builder then bills these costs back to the investor i n terms of a higher rental rate for the building. These opportunities offer the lowest possible startup costs for a daycare investment. In this scenario the only costs remaining for the investor is to (1) furnish & equip the space and to (2) provide adequate operating capital to carry the center through its startup phase.

Unfortunately, these opportunities are rarely open to inexperienced investors. Before a builder is willing to invest money up front in an investor's business they will demand a very strong sense of security from the investor. Typically these opportunities are open only to investors who can prove a successful track record in the field or who are moving an existing center into larger space.

 
         
 
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