Quote:
Originally Posted by turbo6bar
My proposal, when I find a sucker is taking a cash investment at say 70 cents on the dollar. I invest the other 30% along with the sweat and materials to bring it back to excellent condition. Then, grandma has as least 40% equity position in secured RE that will eventually grow in value (we are talking about real estate in flyover land). RE is held long-term.
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I'm not sure what you are proposing. Are you looking for lenders, or equity participants?
From your first post, it sounded like lenders. You are looking for people lend you $$ at 4%, which loan would be secured by real property.
If that is the case, I agree with the others. The only grandma you'd find to stroke you a big check for the promise of that small return, and no chance of any upside, would be your own. There are so many problems with that. One would be that people's money would be illiquid for a long (at least many, many years, maybe decades, and perhaps indeterminate) amount of time. Not many would want to jump on that train for the promise of 4%, and no chance of any other upside (and uncertainty as to interest rates 5, 10 or 15+ years from now).
But your above post makes it sound like the investor has an "equity position" in the property. That, of course, is a very different scenario.