Please Help With Investment Question Warehousing
I called on a 50k cash at closing deal. This guy has 15 buildings, 12 units each that appraises at 576k (48 *12). He does not want to refi for some reason.. He wants me to buy a building with ltv of 75% (435) and he will put down the 144k.. I would have the building in my name for 12 months collecting rent and getting a 17k tax break after 12 monhts.. During the 12 months he is selling off the units as condo's for 54k.. He has to pay my mortgage down after each sale of the condo.. He will have the buidling sold after 8 condo's are sold. If the condo's don't sell, he must assume the mortgage back... I never have to pay his second mortgage of 144k or the first.. He will manage it the whole time.. If he never sells the condo's or buys the buidling he lost 50k and 144k... I am having a lawyer look at the contract. Has anyone heard of this??? Supposodly he has 9 closing this wekk and 6 left to sell..
I do not understand why he can't refinance..
thanks
Kevin
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