Real Estate Partnership

[Kalvin Johnson]

I was recently approached by a real estate developer (who ran into financial problems from '08-'09). I have done one deal with him already on a nursing home development and everything went fine. He is now coming to me to use my good credit and financial ability to get a line of credit to use towards a few more developments because he doesn't have the money or ability to do it on his own. He currently has two developments that he has an economic interest in. Let's say for easy numbers based on a banks appraisal (worth 1.2 million). He is wanting a line of credit for 400K and in return he will allow me to UCC his economic interest in the two developments. One development is a student housing project and currently has 75% occupancy and another is a nursing home that was just completed in November and has 35% occupancy. The financials checked out and everyone involved has signed off saying it's ok for him to transfer his interest to me. He is wanting the money for 5 new developments that could pass him up if he doesn't get in now. On top of him assigning his interest to me, I get a third of all of his developments from here on out and have a right of refusal as well. Has anyone ever ran across this type of situation?