I Want To Rescue A Dead Deal?

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Hello
We had a contract on a a vacant lot in washington DC. Our goal was to build a house, and sell it. We have 10percent down, but the lender wanted 20percent. The deal is almost dead. Seller may be open to creative financing.

I have read up on subordination of the land, but the owner is making payments, so I do not know if he could subordinate something he does not actually own. My other brain storming idea is to form some sort of partner ship with the seller. Maybe I will make his mortgage payments during construction, and increase the contract price a bit. (it was originally listed at 289k.)
Can anyone share their thoughts on this matter.

The numbers for this project: lot: contract price: 238k; construction cost including foundation: 240k; holding and realtor fees on the back end: 45k. House will be listed bet 600k-650k.

Comments(3)

  • cjmazur3rd April, 2005

    I would suggest you watch out you get get into bed with.

    Why give equity away if debt will sove the problem?

    Will the lender allow the other 10% to be a 2nd?

  • iwant2bindependent4th April, 2005

    I let the deal fall through.
    Commericial King what sort of a margin should I be looking for in a contruction (spec house) deal?
    I

  • NancyChadwick4th April, 2005

    Minimum of 25%.

    Nancy

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