Supposed Developer advertising for Partial Owner Financing in MA

6 Replies

A supposed developer posted the Ad below. I answered him with interest, because I wanted to know more about this.

He answers me reply to him, and gives some basic info and a company name. Well like most normal folks, I look up his name and company to see if they are trustworthy. I could not find ANYthing so I asked him for more specifics.

He said he was going to meet, yet, I never heard from the BOOB again. He must have gotten touchy that I was looking him up, so he threw a potential opportunity away, because of his emotions. He never admitted or expressed anything. Just decided to pass on a potential lead. My loss or his?

Today, I have had another one blow me off. I am thinking of selling a property and I am getting these boobs calling me, claiming to be developers. Where did I advertise. Craigslist.

Found out that his LLC status was in jeopardy due to not renewing his license his in time. He told me that he was waiting on paperwork.

Further check did show quite a few transaction in Massachusetts.

Below is the Developer's Ad, that I answered

Builder Seeks Partial Owner Financed Land/Rehab/Multi Projects

0BR land. Available May 17 POSTED on JUNE 1st, 2014

Licensed Builder with 20+ years experience seeks Owner Financed or Partial Owner Financed Land and Rehab Projects. Construction Funds and Development Funds are in place for viable projects, financing requires Owner to subordinate minimum of 30% to 40% of purchase price to Construction Fund Note and Mortgage, remaining balance of purchase price paid at closing.

For example, $100k purchase price, Owner receives 70% ($70,000.00) at closing, holds 2nd Mortgage of 30% ($30,000.00) which is payable upon sale of rehab or new construction project. The 1st Mortgage will consist of 70% purchase price, in this example $70,000.00, plus associated rehab or required construction funds, road costs etc.

Can close quickly depending upon due diligence and permit status of properties.

Brokers protected

Interested in single or multi lots, single and multi family rehab buildings in Greater Boston, North Shore and Merrimack Valley Areas

Updated over 4 years ago

Hi Ronald, Thank you for contacting me, I am away until the 5th, may I contact you then? What is the property address? Bud Pelczar Oak Hill Development

I have seen that same add before looks like they are trying to do deals without using  much of their money.

@Ronald H.

Check with some of the Massachusetts REIA club presidents see if they know the person.

Paul

Thanks all. To answer Paul Timmins. Yeah, Paul, I did do a search for members named "Oakhill Development LLC. It turned up a result, but I needed a Plus or Pro Acct to see any discussions, so I dropped that. I also wanted to know if anyone knew him here on Biggerpockets, but I was not sure what forum to use.

To get off that topic and to recap the last of my experiences with this company, the following happened.

This particular guy B. Pelczar claiming to be from Oakhill Development LLC returned my message saying that there was not enough profit in the deal, and I in turn, responded by saying "Your message would have made sense if you knew what your profit was going to be."

Fact is: There was no mention of any price. I think he got aggravated because his LLC license was not renewed and I discovered it and asked him for details on his completed projects and construction license details to see if there were complaints from former jv partners, especially considering the fact that he wanted me to carry back 30-40% of the project in the form of a mortgage to his company that would have been used to fund the project or rehab costs. I was trying to cover myself. Did I go wrong here? I think this research should be expected in these types of situations.

If he had sent me a simple message stating that he only does bigger projects this would have been fine, but the guy let me send him all the property details, and then he blows me off like this is unimportant. Just an average Boob with limited people skills.

All I want to do is sell the property and get a smaller place perhaps with a Garage. This property will not qualify for a mortgage, so it is an Investor special or perhaps a fixer upper for someone who is handy and wants to provide the sweat equity to fix it.

If someone is turned off because you are looking into them prior to investing your own money with them then I would say good reddens. If someone were to tell me they were looking into me I would say I understand and give them good references and/or ,y licensing info so that they can research me and feel comfortable prior to moving forward. I would keep moving on not look back honestly.

Ronald H, your post is ridiculous:

A) you responded with breakdown of property, including taxes and assessment

B) you included statements from building dept etc

C) you inherited the property from your Mother

D) you obviously not seasoned investor or you would have known what to do with the property and realized it takes less than half an hour to do CMA on a property and neighborhood

E) if you were seasoned vet or investor , you'd know contractors licenses are issued to individuals not companies, I have been licensed for 25 plus years and informed you of renewal date etc

F) I'm not LLC never claimed to be LLC , Oak Hill is a Trust which does not require licensing.

G) I informed you of medical issue with family member apologized for delayed response and in interim did drive by and based on neighborhood and comps realized not for me and passed , end of story.

H) you prodded me with incessant emails like a petulant child because I wasn't interested, ignored my email apologizing due to medical issue and attempted to insult me, while all you did was to the point it was expose yourself as desperate boy who inherited a property, was not an investor nor seasoned in anyway and clearly apparent someone I would not do business with regardless of property 

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