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Ker what is the process of recovering your money if the deal does go sour? So if things go south, being a second mortgage or third mortgage, you stand down the end of the line in terms of getting your money back. And getting a discount on the uncompleted unit. Will you be in limbo until...

I guess this is not strictly about development. Its more about creative financing solutions for developers and investors. You can demonstrate why developers pay the higher interest that they do to get the job done. I think its another investment opportunity to create some cashflow for people who...

Hi Joanna, Thanks for that. In terms of just passing on the opportunity that was presented to me, I didn't have the necessary knowledge to demonstrate the viability of the deal. What I would like to suggest is if there is enough interest we can have it as a topic for our next meeting in...

Hi all, I certainly appreciate the discussion around this. I will go back to get more information along the lines of the developer's situation. Please understand it is not my intention for anyone to make a decision based on my posting on this forum. If you want more information regarding this...

thefirstbruce, I didn't go into that. Questions like that I think need to be looked at on a case by case basis. Why do people get bridging finance? Money he was expecting to come though from another party didn't eventuate as promise leaving him in a lurch, banks dragging their feet in valuing...

Hi Les, It does seem like a coincident but I can assure you its not the way the deal was intended when I spoke to them about it. I don't think the developer is interested in giving any sort of discount for the property. He is only trying to solve his short term financing problem with the...

Hi Les, To clarify the points you raise. The use of the term default seems to be the sticking point here. So I will try to explain further. When you lend the money to the developer a contract for exchange is written up to show you purchasing the unit at $400,000 with a $250,000 deposit. In...

Hi, Peteb is correct in that you would be purchasing a property valued at $650,000 for $400,000. So for the sake of paying you interest of $22,500 he would stand to lose $250,000.

Hi, The unit is "sold" to you at $400,000 on default. You just hold the contract at the time of giving him your "deposit".

Hi all, I was just offered this deal but am not in a position to be involved in it. Thought I would pass it onto someone else who might be interested. It seems like a good deal and if a discussion occurs then I would be happy to learn from it. Details are as follows Background Developer...