|
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.
|