We have an opportunity to adjust the cost basic in a very desirable Business Park that we own in Newnan Georgia due to a Bank’s failure.
We see this as an opportunity to purchase the loan at a large reduction in price through an Investor or Partner. The loan is scheduled to be sold through the auction process for the FDIC in a pool of loans owned by the failed Bank. The Loan will be a part of the larger pool and it will be sold as a whole.
Our plan is once the pool of loans is purchased by another Investment Firm, to negotiate a purchase price of the loan and have an Investor standing in the wings to purchase the loan. We would deed the property over to the Partner/Investor in return for an “Option” to repurchase the property within 5 years. This way the Investor is further assured of his collateral because he controls the property and would not have to foreclose if a default occured. We would enter into a management agreemant and as part of our management agreement we would continue to manage, rent, maintain and keep the books and everything needed to operate the property.
The Investor/Partner would have two choices in the way it would be paid by DCA for the funding of the purchase of the loan.
Is there anyone that would be interested in this type of deal or are we approaching this opportunity the wrong way?
The Investor/Partner would have the choice of funding the total purchase price of the loan or become a 33% Partner.