$1,200,000.00 Land Purchase Need To Be Creative
I have the opporturnity to purchase prime lake property with adjoining farm land that a canal could be built that would enable 8- 2 acre lots to have access to a very large lake. In addition there is 10 - 2 acre lake front lots that are already there. The property is in an area that there are several large homes ($700,000-$1,000,000) have already been built.
Now, what I need is a creative way to obtain the deed so I can borrow the appraised value. Invest this money in income producing property that will earn me NET 16%. I want him to hold the note (???) for 9-10 years and then I will the balance pay him off. I can pay him 8% or so. This would give him an income of about $6,300 per month. My income producing property will pay for
both peices of properties. I would have securied contracts in my hand that would guarantee the income for the 9-10 years.
I need something that would make him feel secure in holding the lease (note)? (Whatever) and give me the deed. He is 65 years old and has worked hard all his life and has little or no money and is in debt. (I do not know how much). I have been reading on what you guys are writing and know there has got to be a solution that is win/win.[ Edited by threestar on Date 07/10/2003 ]
If you own other investment property you could offer him a blanket mortgage, using equity you have in the other property as secutity, but he wouldn't get any cash now.
You could have him carry the note, then he could sell only a few years of the cash flow(at a discount), depending on your credit. This would give him some cash now but not have to sell the whole note at a discount.
He could also sell the income (interest) of the note for several years or all at a discount. This would leave the orginal note value ($1.2m) untouched.
if you have any ?'s feel free to e mail me
sincerly,
mike urban