Has Anybody Heard Of A Company Called Red Door?
Has anybody heard of company called Red Door?
What do you think of them and their product?
Please offer some insights.
It is NOT a TIC. They are a condo-conversion company. You actual purchase one of the condo, supposedly 30% under appraised value (you have to get an appraisal to get the loan), Then the day you close the developer leases it back from you and handles all the management. You get your monthly income even if it’s not occupied, because the developer leases if from you.
Anyway in the lease the developer gets the option to buy the condo back from you. Supposedly they have bought every condo back over the 15 years they have been in business. Supposedly it’s an option to buyback the condo, vs definitively writing in the lease, that they will buy it back, because writing in the lease that they definitely will buy it back would then violate 1031 tax code. What seems to be another positive is that you own the condo. You have a fee simple title. No partners.
Anyway has anybody seen or invested in a product like this? Sounds good but I’m always a skeptic.
It seems as though the developer has structured it like this to help him finance the project.
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