Posted by John (OR) on March 03, 2005 at 17:05:23:
Hopefully you find what you are looking for.
I do think it is a little short sighted for you to close the door to hard money. Look at it this way. You can joint venture with someone and give up half the profits after then get their cash back. Or you can borrower on HML terms and keep more then half the profits while not having to share control.
The deal as stated is a bit too tight for some HML terms. It will depend on who you ask.
If you stand to lose the opportunity then reconsider what it is worth to you. This one might be too thin and you should walk away. Otherwise you should decide how much you want to make and then not worry about the costs. Work to keep them as small as possible but at the same time focus on making money. If you wife says no to using a HELOC then paying a bit more for outside finance (JV, HML, etc) might be the difference between zero profits rolling in and some profits rolling in.
As you said, you only have 2 weeks.
Oh, if you assign it I suspect you will make less then if you did the deal. Otherwise the buyer is really paying too much as they are taking the risk of finishing the project. They should get the bulk of the profits.
John B. Corey Jr.
Chelsea Private Equity LLC