Big Deal Question
I have access to a large residential project that is in danger of going under. The project is about 50% sold to individual investors that purchased almost 2 years ago.
Due to the market colapse and zoning issues that the developer had the homes are going to be delivered outside the 2 year time frame that the developer promised to deliver the individual homes to the investors in. Most of the investors will get their money back and walk. The developer will be stuck with a huge glut of inventory. I believe the developer would sell at a hugely discounted price at this point. I know that the developer purchased the land dirt cheap.
I would like to find a developer that concentrates on rental property and perhaps buy the original developer out and turn the community into rental. So my question I guess would be 2 part. Does anyone have any ideas on how to capitalize on this deal? Doeas anyone know of any developers that concentrate on large scale rental communities. Any help would be graetly appreciated.
Thanks,
Is this MF or SF?
This situation is happening all over Florida. If you are talking MF, the formulas are pretty cut and dried as to what the costs can be and still be supported by the rental market. The "shadow" rental market will hurt most projects. There is VERY cheap money out their for MF projects that work.
You will need patient money and a financial institution that knows MF.
I can hook you up if the cap rates are right.