Well there once was a man named Michael Finnegan he had 105 lot's and thought he would build again, the only thought was sell or rent again!
So Michael looked upon his land and said “I want to build brand new rental castles” but “I might consider selling some of them”! Then he had a genius plan “What if I got some investor knights to help me out with the cost’s in gold and diamonds”? Hmm
So he thought $35k 1st TD @ 10% with a subordination clause for 2 year term and then the option of A. Sell the castle and cash out or B. Hold the castle and rent out for 10 years? And not to exceed a total of a construction 1st and subordinated 2nd of more than 80% LTV.
So the investor knight get’s out of the note in 2 years all cash and then can get 25% of profit based on 15% of the castles sales price or 33.3% of ownership of a rental castle for 10 years and let it grow! So Michael was excited, he thought “Wow I will give the investor knights options”?
So selling meant 25% was equal to about $10k in gold, diamonds or cash plus 10% interest!
Or becoming a 1/3 partner meant 10% interest plus an 85% encumbered castle property able to lease for enough to pay property taxes, insurance, put at least $100 in gold, diamonds or cash in my pocket each month and get 1/3 of the tax benefits from the property for 10 years. But includes paying down the mortgage by around 25% and appreciating by maybe conservatively 25%. So if the property is worth $280k in gold, diamonds or cash and originally mortgaged as a 1st and 2nd for $238k then after 10 years the castle would be paid down to $178k or so and would appreciate to $350,000 and after sales cost’s 1/3 would be worth $47,416 in gold, diamonds or cash after 10 years.
So either way Michael was paying off the cash TD note provided by his knights with 10% interest in 2 years or less and giving his investor knights a choice, quick cash or long term partial ownership?
And Michael was going to have his fair maidens handle the management and repairs so everything was taken care of, wow what a nice man Michael Finnegan could begin again!
So Michael went back to his castle for turkey leg’s, prime rib and some grog! After all he had to celebrate his plan, but would it work?
All an investor had to decide upfront is do I want the quick cash sale or do I want to keep a 1/3 share and stay for 10 years! No credit required because Michael as king of his land was handling all the finances in gold and diamonds!
So Michael divided his lot’s the best he could and decided 45 could be sold (Don’t have to be) and 55 he would just have to keep and rent with his new favorite 1/3 partner knights!
But what was so exciting is everyone had their $35k in gold, diamonds or cash back in 2 years and lived happily ever after!
Now all he had to do was clear the land and slay the dragon, and rescue the fair maiden!
This is toll keeper escrow officer in and toll keeper escrow officer out! You know the paperwork people down by the town!
Now Michael went back to the bean counters and it was declared upon the land that each knight would yield at least 24% on his gold, diamonds or cash invested!
It was decreed that everyone was eligible and all squires referring anyone from the land would get a $1000 dollar kings ransom in gold, diamonds or cash!
Wait until you see the story about Jack and The Bean Stock! Wow!!!