Here Is The Deal For A Very High Return For A Builder Angel
Luxury home builder (fiancially sound and successful - 25 plus projects coming out of ground-----)
Owns a lot in a premium neighborhood with in a premium community. Has plans and permits to build house that will market for $3,700,00 and net seller at least $3,300,000. Lot was paid $500,000 for, now appraises at $560.
Builder needs $1,400,000 line of credit to proceed and complete. This covers all soft and hard costs as well as interest payments.
What we have here is a very hot market and even the prolific builders need outside money.
I was offerred this deal:. i will put up$280000 cash and my financials. I will get a credit line for the $1.4 mill, Builder pledges his lot and completed plans . House will be done in 10 months, stay on markey for 4 and sell for $3,400,000 net.
So to review:
Lot 500
Const. Costs $1,200
Carrying costs 200
Costs are $1,900,000
House sells for $3,400,000
Profit to be split with Angel is $1,500,000. Each get 50%
This a deal I just brokered here in S. Florida - and it seems that there are many. These area all reputable builders with good credit - but they have outgrown it,
Comments? Caveats? Am I missing something here?[ Edited by GFous on Date 11/20/2003 ]
By the way, these deals area done often in the high end areas. In Qual West I would say 20 perent of the homes are build with a money angel. (Quail West has no homes beinbg built for less than three million)
[addsig]