I also have a couple great ideas up my sleeve that I would be happy to share with this proposed group, but that I won't be posting on any blog!

Hi @Ki Lee, What you are proposing is not a drop and swap. 

I guess I can see the whole "discouraging speculation" angle, but the entire stock market is essentially speculative--do they also propose a 25% tax on other capital gains on property held for less than five years?

If there are design or structural issues or consolidations you will want to talk to some architects and or engineers for proposals prior to meeting with the GCs 

You can search on BP for posts I've made on the most current legislative proposals. 

.)- It appears you're also across the country from this borrower and the proposed property so you can't personally meet the borrower or monitor his progress if you decide to fund the deal.All of the above just adds to the risk of loaning on this deal. 

I proposed that he carry the note for $50,000 but without payments for 6 months. 

The language in the proposal is this: "Any canceled orders will be subject to a 20% restocking fee." 

To give a little background,Selling agent of a property proposed a cash deal and reached out to me about an offer that I might be interested in. 

I assume my friend should dig into the details and ensure the proposal has specific materials (e.g., "freon free air conditioner" as opposed to "air conditioner") before agreeing to work with the contractor?