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gross, I know enough now never to lend unless secure against something unencumbered and outside of the umbrella of the structure that wants the money. i.e. his wife's or kid's property. and only after doing due diligence on that property's title. Doubt I'd do anything unlike that unless I had...

Gross, totally agree grammar is not that important to be successful. In fact, a high % of the ppl I know who have made it big are in a hurry and don't sweat the detail, as well as having dyslexia etc. A lot of finance guys I know are poor with english but outstanding with maths. I have been...

Grossreal, thanks for your contributions. I'd be very interested in seeing your feasibility spreadsheet when you get it up. And I don't mean to criticize, but you lose me with your grammar sometimes. I am pretty good following quick concise thoughts, but you are too quick and concise. :)

hehehe, thanks andy. I did mean grossreal....I am multitasking here you see...

Outstanding contribution Darren. I really appreciate the quality of your reply. I hope you and Ker get comfortable on Somersoft. A lot of us here are looking for ways to make better profits, with controlled risk, in this flattish market. And there would seem to be more small developers under...

Thanks Kerr and GrossReal for the voice of experience. I'd like to hear more from you guys. My understanding is that a second or third mortgage to back a caveat, is flimsy, and costs a stack in legals to chase. If the developer tanks and is liquidated, and the properties are sold off in the...

Thanks Joanna, Have you ever used a caveat? I understand they are pretty weak legally. A friend put a deposit on 2 new land release lots. The market moved up, and the developer realized he'd undersold, so he dragged out the DA (basically lied about not having it approved yet) beyond sunset...

The way I'd lend this guy $250k would be to lend money to his relative or wife, in the form of a $250k deposit on a contract to buy another asset (like unencumbered PPOR) fully owned by the relative, that has absolutely no association through a trust or company structure with this project...

Can you explain how having security on something that isn't built yet is security? There's a lot of things that can go wrong between completion and lending. If this guy can't complete on time and get all the project sold off for the price HE thinks its worth, he is heading for insolvency and he...