A new investment opportunity! Make a low risk short term loan on a recently appraised property of your choice. These assets were either 100% donated or a combination of cash and a tax write off for the balance to the appraised value. This is accomplished through the IRC 170 (IRS program). Usually, they are large warehouses, manufacturing facilities, apartment buildings, retail centers, office, etc. There are assets that were formerly priced at more of a market rate to sell and due to a myriad of reasons, did not sell and had become an expense to get rid of.
The firm is a Non Profit 503 C1 approved by the IRS. They acquire assets noted above from various sellers around the country and then use either a short term loan for 50% of the recent appraisal liquidation value, or sell them outright for the liquidation value (in most cases). The reason for a loan is that it gives the NPO (non profit organization) time to market the asset for a higher sale price within the time frame of the loan. Their goal is to provide the charities more funds. If they do not sell at a price at least over what the loan value is, the asset reverts to the note holder.
Example: 100,000 sf warehouse on 25 acres, recent appraised value as-is might be $1,000,000 and the liquidation value is $700,000. The NPO would seek a loan for 50% of the liquidation value which would be $350,000. In return they would offer a 15% return. I charge a 2% fee, so the return would be 13% for the year.
This is a one year non- recourse loan with the asset as collateral. The NPO will put this asset in a special purpose entity (SPE) LLC and assign 100% of the shares to you, They would also pre-sign a deed in lieu of foreclosure assigned to the lender. In the event the asset does not sell for a sum acceptable to them, the lender is protected to to recover the asset without expense or litigation.
The NPO's use of funds will be to pay the taxes for the current year, maintenance, insurance and marketing in order to sell the asset for a price higher than the loan at least. Now you have the understanding of where the assets come from, how money will be used, and some background on the overall process from the sellers side. Let's take a look at what the benefit is to you.
You have the option to chose any one of the Off Market assets to either fund or buy once you get them from me, as I will be getting these prior to any marketing. You have the option to purchase immediately to fill a need, start a new business venture, or to resell. If you are not sure, but would like to get your foot in the door and make a return, you can always fund an asset of your choice that you feel comfortable with selling or using at a later time should you have to take the asset back after one year with your return of 13% (after my fee).
The fee for a purchase will be 3% of gross sale price for assets under $1 million, 2.5% over $1 million. 2% for loan.
Contact me at email@example.com for a current list of 8 assets I have some details on now and will be expanding. My phone is 708-870-2920. I believe the complete list is over 50 assets. I do not have access to that many at this time. That would be a price at or above liquidation value in most cases before a loan.