Is it PAYBACK TIME? - Posted by Monica

Posted by Monica on April 22, 1999 at 14:50:32:

Carmen: Thankyou for the reply. This post was made in sheer frustration. Without writing a novel I will explain.

I know what I am trying to do can be done. Just how is the problem. I do not wish this to be one of those “ifidas” in our lives. Already done that and passed up 2.2 million.

We have 10.26 acres that is our principal residence. We have been here 11 years. We are caught in the middle of a municipal development plan. They will not let us rezone to 2.50 acre parcels yet will not yet allow us to rezone to R1 which would give us 50 residential lots. Work for us has not been consistant. This is a familiar problem with the 90’s, not just ourselves but many people. My husband and myself made a concious decision to take equity out of the land to prepay the mortgage . We had assumed that the municipality would stick to there time frame with planning. Well, now that you are on the floor laughing
the school of hard knocks is not an easy one. When we entered into this our mortgage broker assured us that another lender would be found or they would enter into the joint venture. Needless to say that did not happen. I am NOT blaming anyone else. It is our problem and except full responsibility.

Conventional financing is not an option. LTV, service debt ratio etc. etc. Future value is not considered. Lending practices have become very tight even with private lenders. They know the business and putting myself in their shoes understand. Therefore I started looking for a participation mortage, or joint venture partner. These people do not exactly advertise. I would not ask anyone to do what I was not prepared to do myself. We are looking for the WIN / WIN solution. This property will increase in value substancially. I know better than to say exactly when. Seems that most are only looking for the fast buck these days. Understandable.

So, what do I need? First of all we are Canadian and that narrows perspective greatly. Can not find any Canadian sites such as this one.

I was looking for a participation mortgage, or joint venture partner. I must be wrong.

I have come across many lenders that start at 2 or 3 million. If we were rezoned that would not be a problem. It is the additional holding time.

Now that I have wrote the novel, sorry about that. What are your suggestions other than give up. This is my families chance to get ahead. We need that break.

Thanks for listening.

Monica

Is it PAYBACK TIME? - Posted by Monica

Posted by Monica on April 21, 1999 at 17:29:06:

All of the people that are successful at some point in time got that break or helping hand. Did you say to yourself, if I get there I will help out someone else?

I need help. I have been on a relentless search for a joint venture partner, participation mortgage anything that will work. I will bet that I have even crossed pathes with some of you.

I will start with the no answers:

Do not invest in Canada. (Why not, it is bargan Tuesday, our loonie has been downgraded to a duck)

Not big enough. (What ever happened to a dollar is a dollar)

Must be rezoned first. (Since when have all real estate investments been the sure thing. If it was rezoned I would not need anyone else.)

Not borrowing enough money. (Lending starts at 2 or 3 million, I WISH!)

The market is slow right now. (After slow comes brisk and then everyone wants to jump in when prices are high. I thought the idea was buy low sell high.)

I have a pool of blood on the floor from beating my head againist the wall. Sooner or later I will bleed to death.

Why can I not find one, just one real estate investor?

Therefore I must be doing something wrong. Where can I find that one person?

Monica

Focus on the positive - Posted by Bud Branstetter

Posted by Bud Branstetter on April 22, 1999 at 12:50:22:

Your list only has negatives on it. What is it that you can do for the venture? Figure out how you can present those attributes to an investor so they will want to do business with you. Why does he need you more than you need him?

I am not sure why you need a partner with L/O’s, flips and such available. Even a rehab with hard money can be done without any of your own. What is need is networking, knowledge and lots of hard work.

I agree with Carmen - Posted by Sean

Posted by Sean on April 22, 1999 at 12:13:32:

What you are doing is making an unspecified offer. This is not a wise idea, it’s likely just a waste of time for everyone involved. We’re all real estate investors and of course we’re all interested in what opportunities we may share.

Do you have a specific place in mind? What exactly do you need from us? Do you have a pro-forma set up to show us how well it will do if things go according to plan? What type of due diligence have you done to verify your numbers and facts?

Re: Is it PAYBACK TIME? - Posted by Carmen

Posted by Carmen on April 22, 1999 at 12:04:33:

I’m not sure what you are trying to do. Can you be more specific? I can’t tell whether you are trying to borrow money, flip, rehab, build, go commercial, invest in empty land, or an entirely different purpose.

If you ask specific questions, perhaps we can answer on the best way to go about pursuing your goals.

Re: Focus on the positive - Posted by Monica

Posted by Monica on April 22, 1999 at 15:46:30:

Bud: Thankyou for the reply.

…Your list only has netatives on it

It is hard to focus on the positive when you have heard the word no as many times as I have. But, I will not give up. This means too much to us as a family. I posted a reply to Carmen that I would like you to read. Explains things a bit.

…What is it that you can do for the venture?

I am providing information on a venture that would otherwise be unknown. We are willing to do all the hands on work, we only need the financial assistance.

…Figure out how you can present those attributes to an investor so they will want to do business with you

I have tried to do this. Some comments were why are you offering so much. My reply was we are not greedy and just wish to get there. Part of something is better than all of nothing.

…Why does he need you more than you need him?

Only if they wish to make money without doing any physical labour.

…I am not sure why you need a partner with L/O’s, flips and such available. Even a rehab with hard money can be done without any of your own

I guess I have just not found the right source. Most start at 2 or 3 million. Do not need that kind of money yet. But, I’ll take it if they will give it.

…What is needed is networking knowledge and lots of hard work

The hard work has been going on for the last year. Networking is what I am trying to do. Knowledge is what I am gaining.

Please read the response I made to Carmen. One can only beat your head against the wall for so long before you bleed to death. Therefore, I must stop beating my head against the wall and look for different options.

Thanks

Monica

Re: I agree with Carmen - Posted by Monica

Posted by Monica on April 22, 1999 at 15:04:44:

Sean: I posted a reply to Carmen. Should explain what it was that I was looking for. I am sorry for being unspecific. I have been working on this for a very long lime. Getting frustrated. Everyones idea are different. Some want to know the future value, some say it is a waste of their time on what could be. I have spent so much time making new plans for what the possible investor wishes. Seems all to simple to me. But, what do I know.

Thank you for your response if you have any further suggestions after reading the response, it would be greatly appreciated.

Monica