Model Units

[Cory Melick]

Hello BP,

I have an idea that seems fairly easy to make easy money, so I assume there is something wrong with it or it will be difficult to pull off. I'm sure someone from the community has thought of this already.

There are a lot of developments going up in my area (west of DC) and the developers always complain that they can never sell their model unit (which they intend to keep for a couple years during the development).

I'm tapped out for cash. So my question is, has anyone tried taking an unsecured loan as their 20% down, get conventional financing (I only have 2 mortgages) to buy the model unit and lease back to the developer. It would seem like you would have an easy tenant for a few years, meanwhile the value of the property rises as they develop the neighborhood.

Is this too simple? Is an unsecured loan a unicorn? (im talking to my banker today on this) Thoughts?