A mortgage broker friend of mine just brought me a land deal in a town about 45 minutes away from me south of Minneapolis, MN. A developer needs an investor to purchase a piece of land that he wants to build a hotel on. The hotel is a small chain hotel and there is another one from the chain in the town I live in. My parents stay in my town's hotel when they come to visit me. The hotel is very nice and always seems to be crowded. It has been in business for at least 5 years.

The deal would be for an investor(s) to put 25% down on a $450K piece of land. Then the hotel owner would seek financing to buy the investor(s) out in 6 months to a year for $525K. We would not have to do anything except make payments on the loan until it was taken out.

The risk is the developer doesn't perform and we don't get the company to refinance and buy us out.

I have asked for pro-forma and the research they have done. They have sent it over to me. I will look over it this weekend. I have also asked for some references for the developer to see if he has a track record.

I am thinking of putting some money in this from my Self-Directed IRA if everything checks out. I have potentially two other investors interested in this. But it might be good to spread the wealth a little. Plus my other two investors may be a bit iffy. Anyone out there want to learn more and possibly participate?