BiggerPockets

How can that possibly be? $400 in cash flow from a condo on the strip? Somewhere between Mandalay Bay and the Stratosphere there is something that will actually cash flow as a rental?

I agree that this deal looks "To good to be true" by traditional means however I would be happy to share the info with someone that would like to take a serious look.

We have the entire project under our control and selling them at wholesale.

We are holding a seller financed 2nd of 25% LTV on the properties deferred and due in 10 years.

We actually ARE doing these as we have gotten pretty creative. As always it's important to get all the information BEFORE making any assumptions. If anyone would like to take a serious look at these I am absolutely serious about showing you. If you would like I can send a pdf that answers FAQs and outlines the project. Just let me know if you would like to review it.

Although my original post does have an error. The units are "very close" to the strip. Not actually on it. There are 5 different floor plans to choose from and they all cash flow based on a 30 year fixed 10 year IO 75% LTV.

I agree with David.

To Jason- In your last post, you said it would cash flow with a 30 year fixed 10 year IO , 75% LTV. That seems contradictory. Also , you mention nothing about the 25% 2nd. Does property cash flow with the 2 loans together? If not, ANY property out there should cash flow with an interest only loan on 75% of the value, don't you think? Rich.

So I read your PDF as posted on your blog... I have to say I am still very confused... So let me see if I have this right....

1. We obtain a 75% LTV using one of your approved lenders for 6.5 - 7.5% interest (personally I think that is outrageous given market rates right now...)

2. We obtain a 25% LTV using this North American Acquisitions (NAA) LLC

3. NAA will then lease these units from us for the cost of our P&I for the 75% loan PLUS either $500/3years, $400/4years, or $300/5years (this is where I got a little confused)

4. The 25% NAA loan accrues at an undefined accrual period for an undetermined amount of interest for 10 years. After 10 years all 25% PLUS all accrued interest is due to NAA.

5. After 10 years NAA no longer guarantees positive cash flow, and the "Master Lease" ends... leaving you with the 75% payment for another 20 years

Please correct me if I am wrong with any of the details here...

This leads me to a couple of questions. What or who does NAA lease these properties too? Do you have any say over who the end lessor is? If NAA is in essence sub-leasing, are they now responsible for all property repairs and land lording?

Or to put it all more simply... what happens once NAA leases this property from me?

hi jason
I am very new to this forum and looking at investing in the states so I am doing a lot of reading
but for me you are the first person that has posted a post on a forum with a request and then come back saying that you don't have the time to update a post.
I understand sales but when I read that I thought why did you post in the first place if you had no time or reason for answering questions.
as for answering questions personally can you tell me when you will be arriving in sydney for the coffee to discuss

hi jason
tried to get the pdf but couldn't find it on the blog or the web page maybe email it if possible.
and sounds like I will save that coffee for you nick

What a time bomb.

IO for 10 years, and a 25% LTV second, PI deferred for 10 years.

All betting that appreciation will cover in the end?

What did Warren Buffet say about Credit Deferred Swaps?

These deals are all gone now. That is why the pdf is removed.

Hi Dory,

All of the units have been picked up successfully. Only time will tell if they really turn a profit though.

Your comments on upside potential are something that we can only speculate on. Maybe If this thread is active in 3 to 5 years I will update everyone.

I'm sure we will all be able to learn a lot from that.