BiggerPockets

I am a retired CPA and have been an owner of a residential development company since 2004...a year before Katrina devastated our region. Married for 31 years with two grown sons. Been working since 2006 to reintroduce affordable (NOT low income or subsidized properties) rental housing housing into the MD Gulf Coast market as over 60,000 housing units were destroyed or substantially damaged in the Storm. While there are federal assistance programs designed to attract outside investor capital into this process ($73,000 per duplex forgivable HUD assistance), the recent meltdown in the mortgage markets are making it impossible for some of our investors to secure 61% LTV mortgages to fund their purchases of new investment duplexes.

Am interested in networking with anyone who might have private 5 year balloon financing for investors with a lender "participation" provision that pushes the IRR up to a minimum of 13 percent with the lender being in a superior (first lien) position thorughout the term of the loans. These are not deadbeat buyers...FICOs are 700+. In addition, all of our products are eligible for the GO-Zone bonus depreciation of 50% of depreciable basis in the first year...and that bonus is NOT subject to alternative minimum tax. For a real estate professional, this translates to first year federal income tax savings of as much as 20% of the properties' total cost.

My background as a CPA affords us the abillity to structure any potential tranasactions with others in the most tax efficient manner. I look forward to networking with anyone with compatible objectives in this very tricky investment climate.

Comments (1)

Tim : thanks for the explanation of the financial opportunity available with your project. I would like any detail you have that highlights the investment pottential of the individual units that secure the first and second liens. If the underlying property has good potential than i would rate the financial investment as excellent. 06:33AM on May 18, 2010 · Michael Lauther