Developer is looking for investors to buy lots of land. Developer is wanting to start an IPO and get $$$ to launch it. Investors buy lots and "cash out" $20 K -- then lease the lot back to the developer and in a year's time -- the developer buys back the lot. Can you do this? Or is it a Ponzi Scheme?
2006-09-03 08:05:50 · 10 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Developer needs the $$$ from sale of lots to launch the IPO.
Developer gives me $$$ to pay the "lease" and property tax on the lots for the year and there is a signed agreement that developer will buy back lots from me. I get 20K on top -- for all of this.
2006-09-03 08:20:12 · update #1
Beware: Many of the large homebuilders are offloading their land to reduce their overhead. If the big boys are dumping land, why should you be buying it? Why is your developer wanting you to buy his land, supposedly temporarily? If he doesn't buy it back from you at the end of the year, is the land a good long term investment? If the land is a good long term investment, why is the developer wanting to sell it to you?
"Some home builders, because of a decline in sales, are now selling empty lots they once planned to put homes on."
http://www.bubblepic.com/displayimage.php?album=random&cat=0&pos=-26
2006-09-03 08:16:24 · answer #1 · answered by Mark V 4 · 0⤊ 0⤋
some distinctive answerer's have wisely responded distinctive aspects of your question yet i'm prepared to wager there is greater to the story. it is real that itemizing a materials on the MLS takes time. it is real which you are the boss over the Realtor and should not sense pushed around via them. it is real being careful is a robust element. yet you reported that the home is on the fringe of foreclosures for this reason the seller is pricing it below marketplace value and there are motives at the back of that approach like merchandising it with out the added expenses linked with merchandising a house on the MLS and shutting speedier to pay off the interior maximum loan. you're able to believe it is BS, in spite of the shown fact that this is a much greater hardship-loose difficulty than your understand and while you're uncertain, have your agent grant comps to evaluate value and you be the choose. It appears like the seller would not have the money to pay a value nor even the $250 to place it on the MLS thus it would make sense that the seller is likewise in default on the interior maximum loan using fact he/she would not have ANY money.
2016-10-01 06:34:47 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Check with your states local department of real estate.
Your state website is the first place to start. Then go to the search option, enter state department of real estate.
You can usually find information and even a phone number to talk with someone in your state's department of real estate. They will know if this is legal within your state and if you should invest your money or not.
Sounds risky to me....but people are coming up with more unique ways to invest their money for a solid return. Do your homework before you write any checks.
Good Luck
2006-09-03 08:13:55 · answer #3 · answered by R.E.Reta 2 · 0⤊ 0⤋
What State?
2006-09-03 08:08:49 · answer #4 · answered by Lucky Mom 4 · 0⤊ 0⤋
if it smells like fish.. it most likely is.
IPO?? so the company's going public, and public can buy Stock in the company..
so Why then would said company need investors to buy lots?
Lease back?
If company indeed went public.. the sale of stock would give company plenty of cash to buy their own lots.
without reading fine print.. not that i would as it already sounds Plenty fishy..
sounds like this "company" is jockeying for.. if it's "your" lot, They don't have to pay the property taxes on it.. my take.
2006-09-03 08:06:58 · answer #5 · answered by Anonymous · 1⤊ 0⤋
It is probably high risk. If it is a sure thing to make good money, developer's friends and families would be jumping in already. Let along asking strangers to "invest".
2006-09-03 10:49:34 · answer #6 · answered by Price is what you pay for value. 3 · 0⤊ 0⤋
Show details to a real estate lawyer FIRST!!!
Keep in mind...........
Times and markets are changing!
In California with average homes selling well over $500,000, a 20% decline is $100,000! In any market 'timing is everything'! So, could you afford a loss of 25% of your investment all because of poor timing???
This last up cycle was 10 years in many parts of the country. The downcycle now started in CA, Wash DC, NYC, Vegas and other hot areas of the past are all soft and getting softer.
From 1990 to 1996, the average home in San Diego lost 20% of its' value! The cycle we are now enterng looks like it could well exceed that on the downside!
With all the 100% financing, interest only loans, EZ qualifing etc...even a slight decline will cause many to be unable to sell for the amount due on their loans!
For some great 'insider' articles on the San Diego real estate market, which I believe will apply to any of the hot real estate markets of the past five years.....visit:
http://www.brokerforyou.com/brokerforyou
http://www.downtown-san-diego-real-estate.com/san-diego-real-estate-article-index.htm
http://www.brokerforyou.com
http://www.san-diego-for-sale-by-owner.com
http://www.la-jolla-ca-del-mar-san-diego-real-estate-encinitas-california.us
http://www.brokerforyou.com/blogger/index.html
http://san-diego-coastal-real-estate.blogspot.com
http://sandiegofsbo.blogspot.com
http://downtown-san-diego-real-estate-views.blogspot.com
http://san-diego-coastal-real-estate.blogspot.com
http://sandiegofsbo.blogspot.com
http://downtown-san-diego-real-estate-views.blogspot.com
http://www.brokerforyou.com/san-diego-real-estate-sales.html
http://www.poway-real-estate.info
http://www.del-mar-real-estate.info
http://www.la-jolla-real-estate.info
http://www.los-angeles-real-estate-brokers.com
http://www.san-jose-real-estate-brokers.com
http://www.orange-county-real-estate-brokers.com
http://www.san-francisco-real-estate-brokers.com
http://www.sacramento-real-estate-broker.com
2006-09-04 04:04:28 · answer #7 · answered by Anonymous · 0⤊ 0⤋
it is a scam developer never need money the banks are always more than willing to lend to them and the way that you would be doing it they would be paying you more than they would be paying a bank
2006-09-03 08:12:16 · answer #8 · answered by Adam T 3 · 1⤊ 0⤋
The world may never know.
2006-09-03 08:06:49 · answer #9 · answered by FigrSk8tr 3 · 0⤊ 1⤋
seems like one!
2006-09-03 15:29:59 · answer #10 · answered by world news 4 · 0⤊ 0⤋