Restaurant + 15 units apartments
Hi. There is a restaurant for sale. The asking price is 2 million dollars. I would like to buy the restaurant and build 4-5 stories on top. If the restaurant itself is 2 million, I think I will need at least 500,000 dollars to go ahead and build out the apartments. As an 18-year-old, how can I make this happen? I would need to raise about 2.5 million dollars. 

Where would I be able to secure the funds to make a deal like this happen? Would I be able to get a loan from the bank? If not, what would I need to have an attractive deal that will let me get a loan from bankers? What do bankers look for in a good deal? 

I don’t want to wait until I start working and I am making money. I feel like that would be wasting my time. Any guidance? It will be greatly appreciated!
[{"id": "fwxrmfa", "text": "Hey there, in the restaurant business as a multi unit operator. We are successful &amp; have a proven concept with great track record in operations &amp; real estate. Lending for us in the current environment is a pain &amp; banks we have existing relationships with are making us jump through hoops. We haven\u2019t seen a major decline due to Covid but the industry as a whole has which has put lending on edge. As experienced operators we have to contribute 15-25% down depending on the deal. \n\nFor you to make this deal work you\u2019ll need an experienced partner in the industry that can also contribute a lot more capital. \n\nReach out to some local lenders &amp; see what they\u2019d expect from you. Awesome initiative on your part to start early, it can be an attainable goal but it\u2019ll take you some time. \n\n$500k is nowhere near enough money to build 4-5 floors/stories or 15  apartment units. \n\nBest of luck.", "replies": [{"id": "fwzxxs5", "text": "\u201c$500k is nowhere near enough money to build 4-5 floors/stories or 15  apartment units.\u201d\n\nOP doesn\u2019t know wtf they\u2019re doing", "replies": [], "depth": 2}], "depth": 1}, {"id": "fwy2bmt", "text": "Please start smaller, or find a very successful and hardworking partner. Then consider why that partner would let you in on a deal.", "replies": [], "depth": 1}, {"id": "fwy2hol", "text": "Commercial real estate requires 20% minimum down payment to 40% sometimes. \n\n(2000000\\*.2) =$400,000 to $800,000 ($2M\\*.4) down payment \n\nIt costs between 150k to $250k (very conservative estimate) per door to build something, especially from scratch, depending on where you are. Lets say 8 doors per floor \\* 4 floors = 32 total doors above restaurant\n\n150k\\*32= $4.8M to 250k\\*32= $8M\n\nNo bank will loan that kind of money to an 18 year old with only $15k to their name and no assets. You'll need private investors such as mom and dad or rich friends of the family to back you. Bottom line is you need money, lots of money, or high value assets in order for banker to take a risk on loaning that kind of money to you.\n\nGo get a job. Save and try something a hell of a lot smaller when you have a few hundred grand in the bank", "replies": [], "depth": 1}, {"id": "fwybrws", "text": "Is your plan logistically possible? \n\nCan the existing building even support the weight of an additional 4-5 stories? Is the existing building zoned for 4-5 stories? \n\nWalk me through how a one-story restaurant has a $2 million purchase price, yet it will only cost another $500,000 to build out another 4-5 floors.", "replies": [], "depth": 1}, {"id": "fx15tf5", "text": "Bottom line you need to start out as a cre analyst at a bank or private cre equity shop. You\u2019ll learn how to put these deals together and what you need to have to obtain a loan from a bank / raise capital. \n\nStart small. Buy a duplex. Live in one side and rent the other out.", "replies": [], "depth": 1}, {"id": "fx979eg", "text": "&gt;As an 18-year-old, how can I make this happen? I would need to raise about 2.5 million dollars.\n\nEstimated cost = $2.5MM, required loan =$2.5MM\n  \n\nOk let's not even get into zoning, accurate budget, construction requirements, feasibility, experience. You are not looking for a lender you are looking for investors.", "replies": [], "depth": 1}]