Posted by ray@lcorn on December 13, 1999 at 23:28:50:
Von,
I have a question:
If the landowner has all of the plans drawn, owns the land, has the construction financing, and will also act as the developer, why does he need you, or any other partner, in the deal?
And that brings up another question:
If you are planning to take on a partner to buy your interest in the “joint venture”, what will that partner receive as a return on his investment?
And if you are planning to borrow the money to buy the interest in the “joint venture”, what will the lender get as collateral?
As I mentioned in ‘RE Big Player’…All prelim work has been completed ready to break ground BUT…I have no monies, the seller soon-to-be-partner(joint venture contracts have been drawn up, lawyers on scene) is requesting good faith monies before moving on(10% of cost of land 400k)of course to be deducted from 1st construction drawn.
At this point do I solicit a hard-money lender or seek a partner for these funds so project or my deal won’t fall thru. Seller has mention other parties are interested with money in hand.(yes I could view this as a push or bluff)
Ray…Shawn…Anyone with suggestions.