If you buy with no money down you are at a return of infinity. So I don’t quite understand why 10X seems so unbelieveable. It happens every day. I just want it to happen in my backyard.
Build house for 200 K with 10% down (ie $20K) Borrow funds at 15% Sell house for $400K. Six months construction/sale time ==> $200K profit/$20K down = 10X in 6 months ==> 20X over one year. These are rough numbers. You can do the math.
You are still spouting crud here - Posted by Marc Donovan
Posted by Marc Donovan on December 29, 2005 at 07:34:34:
The trustee holds all of the equitable interest, not the beneficiary.
If you have a partner beneficiary, they can only get a charging order due to the partnership arrangement (can’t partition the partnership). This is not due to the trust its due to the partnership.
If you are sole beneficiary and you get hit with a judgement, you will lose your beneficial interest (unless you lie to the court and deny you own it).
The beneficial interest has all the value. The person holding the beneficial interest can direct the trustee to deed it to him (assuming a typical land trust contract).
Its much better to have the buyer go away after the sale. If you need a partner bene, go find a friend to invest with you.
Posted by WAREIA on December 28, 2005 at 13:28:18:
It’s not all in vein and Marc has made some great points and has cleared up my rantings. I sometimes get so fired up and anxious to get a reply in that I don’t get it out right. I don’t mind being reminded of that. Especially if it is mis-information or could have a negitive effect on another Investor.
We don’t always have to agree and I will try to slow down and actually read what the heck I’m writing from now on. Yes, and I know I’ll get responces on this one too.
You and I have done some amazing deals together in the last few months and we’re only going to do more. This site keeps my juices flowing and reminds me why I don’t do CRE any other way.