Posted by Jon on April 10, 2006 at 11:05:05:
thanks for the reply. Location is NW WA. the area’s trends have been following seatle’s #'s, and seatle is on the upswing again.
I have not seen the GC’s tax returns, but he has been doing this for years, I do know his credit score is 800. He is licensed and bonded, and we have talked to other big GC’s around the area and they have all said he is a good, solid guy. good character.
He’s got a great area that is being developed, there are 18 lots left that just got finished in the 2nd stage of a development expantion. The area is very nice, and very in demand. He himself is building 8 houses in that area right now, with over half of them being pre-sold.
I do appreciate your concern, and believe mem I have thought long and hard about this. Still not sure if we’re going to do it. We have been looking at some other options, and I’m leaning toward them now. These other options have a lot less exposure risk, so we’ll see. I see how people can get in a hurry to invest, so I’m trying to slow down, make the right decisions, and I keep telling myself this IS NOT the only deal out there. Keeping my eyes open…
I do agree with the rent vs. debt cost because I cannot rent these to cover that cost. That makes me very nervous.
Once again, thanks for the info! I have talked to some very helpful people because of this post.