First off, you need $450,000 cash.Yes I understand no one on here PROBABLY has $450k laying around(maybe Jballz with that settlement tho), you may know someone that does and that alone will get ya a $2,500 finders fee if completed just for asking around.
Long story short=
Family I bought my plaza from are now in their late 60’s, early 70’s and realize the 16.5 yrs I have left to pay them is not going to be seen in their lifetime.
Basically they want the money now.They were going to do one of those JG Wentworth type things but offered it to me first.
I owe approx $525K on it and They are willing to let me do a “payoff” for around 425-450 so you see my motivation.
I pay them 6% now and would like to keep that rate close to the same.I have no problem paying a little extra back as I would still be saving in the long run.
Plaza is conservatively worth around $800K in this market,but due to the rents I’m collecting and the future potential(10 acres commercial for future exp.)I would never even consider anything less then 1 mil. so there is plenty of equity there as well.
Everything would be kept confidentially if needed as well.
Derek
P.S. not going to a bank either.Private only
Can you say where is this located?
What type of tenants do you currently have? Any major stores or small mom and pop shops?
Would you consider more than one person giving you the money? Can you personally guarantee a 100% no lose investment over a certain amount of time?
Are you looking for someone with a 450K investment or the little guy that has 20K to invest like me.
Reading this again… I have no idea what you are talking about …
He’s looking for someone to buy a note, basically.
You pay $450k to old couple TODAY.
Be paid xxxx per month(total 525k) for 16.5 years by mistero
Good deal for whoever’s got the change. :tup:
why no bank…
whenever i hear no bank im always kinda suspect about it… not about the person, but the potential for bend over fucking
I would think this be considered high risk since if the plaza went downhill (and they do all the time) then you’d be 100% liable with no income and a big note aka. screwed.
I also don’t see any benefit for misteroman$$$ in this deal? he just owes to you instead of the bank or somebody else.
That’s what I was thinking too. D makes some bad investments, goes bankrupt, and you’re stuck holding a 450k loan right? Banks do this because their loans are insured. I doubt you can get insurance as a private investor. Besides, making 6-7% isn’t all that hard with regular investment. Probably less risk there with a diverisfied portfolio than having all that money invested in one plaza.
its a way for him to get out cheaper. he owes 525k but can buy out for 100k less.
my worry is that he has a few mom and pop shops in there that go bankrupt and cycle out every year and not making too much and the loan falls down.
also trying to figure out, if you make more money on the plaza, does anyone providing you the cash have a part in this or are you looking for a purely private loan? what about someone fronting the cash and taking percentages of the rent as payment back each month?
you give me 450 and I pay off 525.THAT is where I make the Money.You should hope to hell I go bankrupt and you get my whole site for 450.Didn’t you see above where I wouldn’t sell for less then a mil.
I’ll post more later as I have to go to work.will post from there
been fully rented with long terms lease for 3+ yrs.
On G.I. mom and pops do well no big business
truth. people forget that aspect.
would it take you the 16 years still to pay off whoever you borrow it from?
Anyone with $450k liquid capital laying around either just won the lottery, or has better / safer investments out there. Just my $.02, but I’m just speculating. I don’t have $450k.
Good luck, just came in to pull a NYS crap and run on your thread, since that is what we are all about.
I deal with somebody who’s bread and butter is business real estate lending.
My last ethical dilemma was getting involved w/ financialy helping a certain somebody who already owns a horribly gaudy Italian restaurant so he can build yet another hotel/restaurant, likely of the same gaudy magnitude.
I may be able to do it back in 15yrs but anything more then that would be putting the payment higher then I would like.
Even if everyone moved out I could still make the payment but would be a bitch but still doable.
As far as the safety,this is just another mortage.
Other plazas are USUALLY owned by greedy people trying to suck every penny out of them that’s one reason they are empty.I keep rents very low,tenants are happy,make money,and stay for a long time.And most importantly pay off my mortage.
Josh,I’ll give ya a call later when I have time.
lol i figured jack would have been dead by now or at least burned himself to the ground.
no investments are garanteed… just an FYI
derek, i dont know who you are, and from everything you post on here, you seem to be doing well.
HOWEVER, i think that posting a 100% no loss investment opportunity is just completely ridiculous. first of all, there is no such thing as a 100% no loss investment. there is even risk in “risk free” investments (US treasury bonds), as minimal as it is.
to be quite honest with you, a 450k note, involving no financial institutions, guaranteed by a relatively unknown person (you), secured by a relatively unknown entity (your plaza), in a relatively volatile real estate and lending market is not exactly what i would consider to be a “risk free” investment. ESPECIALLY given that you are only paying 6-7% in interest to the holder. if anything, you should be paying a premium because this is a higher risk!
see, here is the thing. if this is a 100% risk free guaranteed investment, then why arent financial institutions jumping down your throat begging you to take their money at a discounted rate?
the answer is, because it is not, in my opinion, even close to risk free. what if your portfolio declines? what if the rental market in your operating areas declines? or declines sharply?
i think advertising this as risk free is irresponsible.
i know you are going to be pissed for me posting this, but i speak the truth, and i think people should read what i have written.