Unique Builder Situation
There is a builder I know who has completed about 80% of a spec house with 8 weeks left and about 280k to finish it. However, he defaulted on the loan and the lender is on the deed now. The builder introduces me to the lender and the lender is stating what I can buy the note for which is a screaming deal. The builder offered me a 30k fee to finish the property but is also requesting a 52 (builder)/48(me) profit split on the deal... I am kind of scratching my head since he defaulted on the loan and is dictating what the terms would be when he is also putting up 0 money to buy the place. Even at that split here is rough summary of the numbers.
My Cash required to close: $125,000
Total loan amount I would have: $633,300
After predicted sales price about 145k to me and 145k to builder.
Would you still do the deal?