All Forum Posts by: Devon Moore

Noah, i spoke with a developer yesterday that uses PML on his new builds and he said the PML will purchase land and do improvements. Be first position until he gets the construction loan, at that time he then will have the construction loan buy out his PML out an pay any accrual interest and origination fees.

Need some advice.

I do some small private money lending to home flippers. I had a flipper come to me asking about doing a new development.

He would need $240,000 to purchase the land from a wholesaler and then he would have his GC partner get the construction loan but they cant get the loan if their is someone else that has a lien on the property so i would have to collateralize against one of their assets which they don't have. Is there another way to structure the deal with all 3 of us? but if i go in a LLC with them i get hit with the tax from the sale of the home

The GC and the flipper were just going to split the profits from the sale of the home and they were going to pay me 2%/12% for the duration of the build. 

Thank you Michael for you reply! That is the direction I will pursue. Definitely makes the most sense

New adventure for me. 
I was approached by a wholesale partner and flipper partners (whom I’ve done private lending for) of mine about me purchasing 1.5 acres to develop 12-16 single family homes on.
I would be responsible for purchasing land and getting it prepped to build. 
The developer will carry all the cost to build the homes and split the profits of the home sales with the realtor. 

So my question is I would do a land lease to the builder. Just in uncharted territory with how to charge my fees. 
From my understanding I would also make my money back on the sale of each home. 
I’m in my deep research phase before I tell them anything and information and direction would be very much appreciated.