Stop Deleting My Posts, Its Not A Scam...i Need An Investor!

[dm12281985]

I am a builder in Great Falls, VA and I currently own a property that is 70% complete in construction. The house itself is in an excellent location, it is 11,000 sqft and has been appraised for $4,200,000.00 which is the price I am intending to sell it at within six months. I have spent over $900,000.00 on my own thus far but I am running out of funds and I need an additional $600,000.00 of which I am willing to pay up to 125% back ($750,000.00) when I sell the house, which should be within six months depending on how early I can receive funds. I am also willing to pay $15,000.00/month, once I receive the funds, until I sell the house and pay the remainder of the $750,000.00 once the house is sold (at closing). I have worked very hard to reach the stage I am at and have poured all of my heart, soul, and money into this project. I just need somebody's help.

As a side note, once funds are secured I can also pay 10% ($75,000.00) initially if that is what you prefer and I will also pay anyone that can help me a 1% commission fee once I receive the funds. I will also provide a week to week budget assessment (along with pictures of the progress) of what the money is being spent on and when the work will be finished.

This is an excellent investment with no risk on your side as the real estate market in this location is very stable. Please let me know if you are interested and we can schedule a meeting to have a walk through of the property. Thank you for your interest and I look forward to working with you.

[BusinessAdviser]

First, you're not going to get $4.2 million for it. A) An appraised value is not the same as the market value, and market value determines sales price. (Market value, as I use it here, is merely what a ready, willing, and able buyer will pay for the house.) B) The $4.2 million pricetag means that there are only a handful of possible buyers. In such a situation, appraised values are almost always greatly inflated when compared to market values. This doesn't even take into account the hot residential housing market (sarcasm intended).

Your financial accumen alone is troubling enough that I would run the other direction. Why are you borrowing $600,000 and paying the investor $75,000 up front plus $15,000 per month out of that money? You are letting the investor take all the risk, AND fund the debt payments. He would have to be an idiot to agree to this. "No risk on your side," my ass.

The only way that I would consider investing with you is if you pledged the entire property as collateral on the loan, and if the property was free and clear - not serving as collateral for any other loans, no mechanics liens, nothing. However, I seriously doubt this is the case.

[chuff1026]

lol
dude
u expect to get 600K on here?
for real estate?
with "no risk" to the investor..as you put it?...

[dm12281985]

I am not intending to scam anyone, I will pay $75,000.00 out of my own pocket initially before I get the money, not thereafter. The $15,000.00/month would not come out of what I borrow from you as I would not be able to finish the house if I were to do this. Also, when the house was intially appraised it was evaluated for 6000 sqft as appraisers do not factor in the basement on appraisals when they are only going by blueprints as most builders do not finish basements. However, now that I do have a finished product the basement would be factored into the appraisal which would put it well over $4,200,000.00 even with the "hot" housing market due to the additional sq footage. I realize that I might not be able to sell it at that price and I am willing to decrease the price down to $3,600,000.00 which would be a steal for this house. The reason why I say its not a risk on your side is because I have plenty of equity that would not affect your return but it would mine. I have a mortgage of $1.3 on the house and I have spent over $900,000.00 of my own funds. This adds up to $2.2 million and with an additional $750,000.00 I would have a total construction debt of $2.95 million. So even if I sell it for $3.6 million I would still have $650,000.00 of equity. As I said, I have poured all of my heart, soul, and money into this project and I am willing to put the house up as collateral if you prefer. I do not have any liens on the property but I will if I can not find funds soon which is why I am posting on this website and others and running from bank to bank day in and day out. (banks take too long, I need an investor by the end of this month)This is 100% legitimate, I know its hard to believe that there are honest people out there but I am not trying to scam anybody. I just need somebody's help who will benefit from this investment greatly.

[BusinessAdviser]

So the $4.2 million is a self-appraisal, the amount of which is being used to support a request for funding? Interesting approach.

Also, if you're able to pay the $165,000 (= $75,000 + ($15,000 x 6 months)) out of pocket, you're essentially telling investors, "I have $165,000 to invest in my own project, but I'm not willing to take that risk. The only way I'll risk that $165,000 is if I've already convinced you to risk $600,000 of your own money." Hmmmmmmm.

In your original solication for investment, you stated, "[It] has been appraised for $4,200,000.00 which is the price I am intending to sell it at within six months." However, now you state, "I realize that I might not be able to sell it at that price and I am willing to decrease the price up to $3,600,000.00 which would be a steal for this house." I think this speaks for itself.

[Cole Taylor]

I dont know why people are giving this guy such a hard time or why it's so hard to believe what he's doing. Happens all day every day throughout the Country, Keep in mind people he's a builder, not a real estate broker/agent/attorney. As such his financial accumen may not be up to snuff.

OP:

Post some recent comps.

[dm12281985]

Are you kidding me jmenq2? Would you take anybody seriously based on a "self assessment"? Rather, could you? I have fully documented third party appraisals that list it as $4.2 million with 6000 sqft ( I have paid for a current appraisal and I am waiting for it - the appraiser told me it would be over $4million). I know you have your doubts, and I am willing to answer any and all questions but please show the same professionalism in your messages that I reflect in my messages when I answer your snarky remarks. Also, I think you are misunderstanding the $15,000.00/month. I am not going to pay you $15,000.00/month until the house is sold plus an additional $750,000.00. The monthly payment would be reflected on the final amount ($15,000.00/month x 6 months = $90,000.00 + $75,000.00 intially which would be subtracted from the $750,000.00 so I would pay you $585,000.00 once the house is sold - at closing.) I have been offered many investment opportunities but never have I been provided all the information that I am providing, how I would be paid back, and never have I been offered a 25% return in less then a year!!!!! It is out of my desperation that I am willing to pay you this much, otherwise I would never offer anybody a 25% return along with payments of $15,000.00/month. I do have funds of my own but if I had enough why would I bother posting anything on any website or asking anybody for money? This is very belittling to me but I do not want to lose this investment that I have worked so hard for. If I do not receive funds within the next two months then I have to put the house on the market and sell it "as is". But if I do this then I would not make half the money that I would if I had a completely finished product and sold it which is why I am asking for additional funds. I am not asking for a donation which is what you are making it out to be, this is a remarkable investment and it is that only because of my desperation to succeed. To address the $3.6 million question I said that this price would be the bare minimum and the house would not stay on the market for even a month. If I want to get rid of the house as soon as possible than this is what I would list it as based on current market analysis given to me by local top 1% nationwide realtors. Please post any questions you have but please show the same courtesy and respect that I show in my messages when I answer you. Let me know if you are interested.

[dm12281985]

My house has 6 bedrooms, 6 full and 2 half baths. It is 11,000 sqft situated on 2 acres of land in a private sought after location in Great Falls, VA.

I couldn't attach a link to the long and foster website so I have listed the addresses of the comps, but you can also do a search based on the criteria I listed above. Also, all of the houses below are within a 5 mile radius of my house.

10447 NEW ASCOT DR
GREAT FALLS, VA 22066

9113 DARA LN
GREAT FALLS, VA 22066

9601 GEORGETOWN PIKE
GREAT FALLS, VA 22066

SPRINGVALE RD
GREAT FALLS, VA 22066

9603 GEORGETOWN PIKE
GREAT FALLS, VA 22066

[BusinessAdviser]

Make another post or two and you'll be able to post a link. Would love to see how it's coming.

[dm12281985]

Has anyone ever been able to raise capital on this website? I am getting quite a few messages but no leads or anything that is solid. I realize I've only posted for 2 days now but I thought a 25% return in less than a year and a 1% comission fee for anyone that finds somebody that could help me would spark more interest than it has. I understand that not everybody has $600,000.00 laying around but you are receiving an incredible return in less than one year! Should I be posting it on another forum? Help me out somebody.

[rogercbryan]

I think you would be better of refinancing the whole deal. You are going to have trouble finding an investor any where that would touch this deal. If you need a broker in the DC Area I can give you the number of the guy everyone I know uses. People just are not going to issue an unsecured loan for real estate these days or maybe any day....

[BusinessAdviser]

Has anyone ever been able to raise capital on this website? I am getting quite a few messages but no leads or anything that is solid. I realize I've only posted for 2 days now but I thought a 25% return in less than a year and a 1% comission fee for anyone that finds somebody that could help me would spark more interest than it has. I understand that not everybody has $600,000.00 laying around but you are receiving an incredible return in less than one year! Should I be posting it on another forum? Help me out somebody.

The most incredible offer in the world still won't put money in people's pockets to take advantage of the offer. I think that your time would be better spent seeking investments from those with money. Roger seems to have a good idea or two on the topic.

[ltressel]

OP:

Based on your appraisal values, I did a search of houses sold within the past 12 months in your area. Your numbers sound right and 4.2 mil is even taking it a little lower than what's it's really worth. If the market was hot-the house can be worth over 5 mil.

I don't have 600K to loan, but I just want to say that your numbers are good. I wish you well on this because the house you are building are "off the charts" size wise and price for the current market.

It might help if you can specify what really is your exit strategy. Is the house already listed? If the window is 6 months to sell, I hope you have enough for the debt service an taxes. The market for million dollar houses are very thin than a 100K house.

I hope you find your investor. I just doubt it will be here.


LT

[rogercbryan]

OP:

Based on your appraisal values, I did a search of houses sold within the past 12 months in your area. Your numbers sound right and 4.2 mil is even taking it a little lower than what's it's really worth. If the market was hot-the house can be worth over 5 mil.

I don't have 600K to loan, but I just want to say that your numbers are good. I wish you well on this because the house you are building are "off the charts" size wise and price for the current market.

It might help if you can specify what really is your exit strategy. Is the house already listed? If the window is 6 months to sell, I hope you have enough for the debt service an taxes. The market for million dollar houses are very thin than a 100K house.

I hope you find your investor. I just doubt it will be here.


LT

I'm not trying to start an arguement nor am I saying your numbers are wrong. I did a zillow search on this property and it had an appraised value of $1.16M and many of the houses in the area had the same appraisal value. Where are you getting that houses in their area of VA are selling in the $4M range?

[dm12281985]

Thanks for the comments everyone, especially ltressel who validated my situation. As I said, I am willing to put the house up as collateral because I want to assure whoever helps me out that they are not going to lose out. My exit strategy for the time being is putting the house on the market as is. Honest to say, I do not want to do this as I would not make half of the profit I would if I were to sell it full price. As for the refinancing, banks do not want to touch unfinished houses and it takes too long - I have talked to dozens of banks and all have told me that even if they were to approve me that it would take at least 40 days which is time I do not have because I am facing liens if I do not find money by the end of this month. I have enough money to support myself, and the monthly payment I would be making for over a year but the amount I have is not enough to finish the house or get it to a stage where I can refinance it. This is why I have in so many words stopped construction to assess the situation I am in now. If I continue to spend the money I have then I would not be able to offer anybody monthly payments as well as put 10% down initially. To address rogercbryan, zillow is assessing the house that was on the property I bought two years ago for $1,290,000.00 which I demolished. (Zillow is now showing a value of $1.16million which once again validates that this market has not been affected as much as the rest of the country.) This is the problem I am facing, to get it to a point to where I could refinance it I would need $400,000.00. For $400,000.00 I could pay you $50,000.00 intially with a monthly payment of $5,000.00/month until the house is at the stage of refinancing which should be 3 months ($50,000.00 intially + $5,000.00/month x 3 = $15,000.00 - $435,000 at closing) By the way, the reason why I would only be able to pay you $5,000.00/month for the $500,000.00 loan is because I would not make a profit once I refinance. I would only have enough to carry the costs to finish the house and have it ready to sell plus pay the bank that I refinance with their monthly payments until the house is sold. I do not know if that is more duable for some but it would pretty much guarantee that you would get your money back as I would have to refinance the house and pay you off if you have a note which I am sure you would want to have. This is a once in a lifetime deal, hopefully for me at least. Nobody can offer a return like this, 25% in 3 months with monthly payments and an intial down payment with a guaranteed return!

LT, if not here then where? Would appreciate it if you could point me to the right direction. Also, I am willing to pay anybody that would help me finalize a deal with somebody else that they referred a 1% commission fee for their troubles.