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A friend is buying a lot in Memphis at a tax sale. Sale has been approved.
I have agreed to lend him 110% of the purchase price with a note secured by a first on the land.
Land is 1.5 acres – cost is about $7,500 – Loan will be $10,000
Commonwealth land title is getting the title policy.
Entrust has the Roth IRA money
What would fair terms be?
Owner is open to shared appreciation mortgage.
What interest rate?
Interest to accrue?
Thank you,
Jack Matson
[email protected]
760 414.9914What’s the exit strategy for the property? Short term deal? Long term deal?
Need more info before I can advise further.
Jackie
We would prefer this to be a short-term situation.
The site is 1.57 acres next to a home depot. Joel estimates the retail value at $270,000. We plan to market it several ways. Build to suit signs (it faces two busy streets) (then sell the package), offer it for exchange or for sell in California, Tennessee and Florida. I?ve agreed to hold the first with no payments and interest to accrue.
Joel is also talking to a land planner for options of highest and best use. Land is low with water on it so a restaurant with a lake or Condos with a water amenity are being considered.
We do not plan to build it out. Think of us as fellow wholesalers.
We would prefer this to be a short-term situation.
We need language for shared appreciation in the note and a formula that will be fair to both of us.
Thank you for you fast response and thank you for the Tuesday calls.
Jack Matson
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