Needed: Wealthy Capitalist

[hblask 1]

I may have a chance to get about a million worth of land for $450K... I just need somebody to lend me $450K for about a year or two, at say, 9% plus a portion of the proceeds from the sale. So why wouldn't you just buy it yourself instead of loaning me money? Because you don't know where it is, plus I can arrange for a cash flow to service the loan until the property sells so that the money earns something in the meantime. Think of it as a finder's fee.

[speedz99 145]

I'm trying hard to read between the lines to find the joke, but I seem to be missing it.

[hblask 1]

I'm trying hard to read between the lines to find the joke, but I seem to be missing it.

It's not a joke, it's a real situation that if I miss I will be extremely frustrated about (although I have no realistic hope of finding a lender here -- this is more just a way to vent.)

[vbnautilus 48]

I'll do it.

[LongLiveYorke 38]

Can we buy shares? I'll throw down a hundo.

[timwakefield 68]

- No, see, I don't need a finder's fee, I need - finder's fee is, what, ten percent, heck that's not gonna do it for me. I need the principal.- Jerry, we're not just going give you seven hundred and fifty thousand dollars.

[nutzbuster 7]

I'd totally do it, but you know...that comet thing......

[strategy 4]

We gotta play ball with these guys - you ask Stan Grossman, he'll tell ya the same thing.

[mrdannyg 274]

If your credit doesn't suck and you can get an appraisal for anything close to a million, a bank will give you the mortgage./unhelpful advice

[AmScray 355]

How do you arrive at your 1mm valuation?Land pricing is still pretty chaotic right now. Also, assuming this is just some retarded good deal but you don't have the personal credit facilities, consider negotiating an option and profiting that way. If there is legitimately 1/2 million on the table, this is usually the best way to get into the upside with the least risk. The troublesome part is the "year or two" time frame. If any of this is speculative, good luck...

[mtdesmoines 3]

How do you arrive at your 1mm valuation?Land pricing is still pretty chaotic right now. Also, assuming this is just some retarded good deal but you don't have the personal credit facilities, consider negotiating an option and profiting that way. If there is legitimately 1/2 million on the table, this is usually the best way to get into the upside with the least risk. The troublesome part is the "year or two" time frame. If any of this is speculative, good luck...

Buy on contract. There's a reason "money" isn't touching this land.

[akoff 0]

I may have a chance to get about a million worth of land for $450K... I just need somebody to lend me $450K for about a year or two, at say, 9% plus a portion of the proceeds from the sale. So why wouldn't you just buy it yourself instead of loaning me money? Because you don't know where it is, plus I can arrange for a cash flow to service the loan until the property sells so that the money earns something in the meantime. Think of it as a finder's fee.

had to read this twice. if you offered keep 25 percent for yourself as finders fee and let the guy putting up the money keep the rest you may have a chance at generating some interest.

[Balloon guy 158]

Currently stuck $500K on a good piece of land. And burning $40K a year to own it.I'm not an optimist about land for the next few years.Unless of course you know things...

[Tactical Bear 3]

Can we buy shares? I'll throw down a hundo.

Eat a dick.Also, Blask, out of curiosity: why is there a piece of land worth 1000K on the open market that's not being bid up past 450K? I mean, there has to be a catch. If it's only being sold for 450K today, but will be sellable for 1000K in 700 days, why is somebody moving it for 450K? What will change in the next two years that changes the potential value of the land?

[pezeveng 207]

A Nigerian has hacked into Hblasks FCP account.These guys are good.

[timwakefield 68]

Oh for Pete's sake, he's fleeing the interview! He's fleeing the interview!

[AmScray 355]

Also, Blask, out of curiosity: why is there a piece of land worth 1000K on the open market that's not being bid up past 450K? I mean, there has to be a catch. If it's only being sold for 450K today, but will be sellable for 1000K in 700 days, why is somebody moving it for 450K? What will change in the next two years that changes the potential value of the land?

Certain types of land are bastard motherfuckers to valuate, which makes me wonder where hblask is getting his 1mm figure (from his ass, perhaps?)Building lots in a subdivision or open aglands are one thing, but many other types of land have fungability issues, which prices them more like art rather than like used cars. The good news is that significant pricing inefficiencies can occur because of this. The good/bad news is that the broader land market is in chaos right now which might facilitate mid or long term price inefficiencies, but at the total expense of short term liquidity (ask me how I know- presently trying to sell land to fund another land purchase. Life lesson: segregate your capital into 'liquidity modes' so you can buy into pricing inefficiencies without having to liquidate the same at a likewise inefficient price).Unless he found an old widow who's clueless, there probably really is a good reason this land is just sitting there. There are institutional investors who do nothing but hawk sizable or commercial land parcels that are introduced into the open market in any way- their insights are usually pretty strong. Of course, 'dry powder' is problem for a lot of people right now and there are indeed some *retarded* bargains out there. maybe he just found one.Buying via land contract is inferior to securing an option if your only goal is to speculate. Options can be had for pretty cheap (presuming the seller is amicable to it), you risk very little capital, you buy almost all of the upside and if it doesn't move, you aren't saddled with paying it off or punting on your equity.

[dna4ever 2]

This land is in Detroit, isn't it? ISN'T IT!!??

[AmScray 355]

This land is in Detroit, isn't it? ISN'T IT!!??

Seeing as one could buy the entire city of Detroit for less than $450,000, I'm guessing not.

[Tactical Bear 3]

Seeing as one could buy the entire city of Detroit for less than $450,000, I'm guessing not.

The whole Greektown/ComericaPark/FordField area is surprisingly not-shitty. But, yeah, if you go two blocks in the wrong direction you could pretty much buy two square miles of land and buildings for 250K.

[mtdesmoines 3]

Buy on contract. There's a reason "money" isn't touching this land.

Also, Blask, out of curiosity: why is there a piece of land worth 1000K on the open market that's not being bid up past 450K? I mean, there has to be a catch. If it's only being sold for 450K today, but will be sellable for 1000K in 700 days, why is somebody moving it for 450K? What will change in the next two years that changes the potential value of the land?

[hblask 1]

OK, more details:The land is currently a restaurant. About a year ago, Walgreen's signed a purchase agreement for $1.3M for the property. They even got the city to rezone an adjoining lot so they could build a Walgreen's on it. Then the Walgreen's-Snyder's merger happened, and they put an end to all expansion plans, and the deal fell through.The restaurant owners are going broke, and will be foreclosed on in February. They owe $450K. If nobody offers a higher amount, which is a distinct possibility in this real estate market, then it can be had for that amount. I am in a unique position that, if it gets to a bidding war, I can bid up to $580K and still only have it cost $450K (due to a claim I have on the land).Since the land is currently for sale, a lot of things could happen. First, it could be sold before then. Second, some "business people" are trying to work out a deal to manage and own the restaurant and keep the place. And third, someone could swoop in and buy it while the foreclosure clears.Land has not dropped that much here over the last year, so if it was 1.3M a year ago, it's worth at least 900K now, probably over a million.The problem is waiting for it to re-sell. But the restaurant owner told me he has over $8K/month cash flow toward the mortgage now, so it seems like even $6K of that would be enough to service the loan and still make a profit until it sells, and allow the restaurant to continue make enough profit to keep them around.I gave a banker the preliminary numbers, and he said it doesn't sound good, but didn't say why. I'm hoping to meet with him this week. Any ideas why this wouldn't work for a bank? Am I missing something big?

[hblask 1]

had to read this twice. if you offered keep 25 percent for yourself as finders fee and let the guy putting up the money keep the rest you may have a chance at generating some interest.

Honestly? If I could get $150K out of this one way or another I'd be thrilled......

[hblask 1]

Buying via land contract is inferior to securing an option if your only goal is to speculate. Options can be had for pretty cheap (presuming the seller is amicable to it), you risk very little capital, you buy almost all of the upside and if it doesn't move, you aren't saddled with paying it off or punting on your equity.

I don't think options would work in this case, because the bank will have the property for $450K before any meaningful length of time can pass.

[AmScray 355]

About a year ago, Walgreen's signed a purchase agreement for $1.3M for the property. They even got the city to rezone an adjoining lot so they could build a Walgreen's on it. Then the Walgreen's-Snyder's merger happened, and they put an end to all expansion plans, and the deal fell through.The restaurant owners are going broke, and will be foreclosed on in February. They owe $450K. If nobody offers a higher amount, which is a distinct possibility in this real estate market, then it can be had for that amount. I am in a unique position that, if it gets to a bidding war, I can bid up to $580K and still only have it cost $450K (due to a claim I have on the land).Since the land is currently for sale, a lot of things could happen. First, it could be sold before then. Second, some "business people" are trying to work out a deal to manage and own the restaurant and keep the place. And third, someone could swoop in and buy it while the foreclosure clears.Land has not dropped that much here over the last year, so if it was 1.3M a year ago, it's worth at least 900K now, probably over a million.The problem is waiting for it to re-sell. But the restaurant owner told me he has over $8K/month cash flow toward the mortgage now, so it seems like even $6K of that would be enough to service the loan and still make a profit until it sells, and allow the restaurant to continue make enough profit to keep them around.I gave a banker the preliminary numbers, and he said it doesn't sound good, but didn't say why. I'm hoping to meet with him this week. Any ideas why this wouldn't work for a bank? Am I missing something big?

To bad you aren't liquid and too bad you don't know what NNN Leases are, save for what you're about to go google right now and perhaps, return to this thread and pretend you knew all along. If you had money and had that knowledge, you'd see a significant opportunity here for a man with the right Rainmaking skills.