Sandy Schaefer

Not to be coy but a question often begs a question ... do you want this property or do you just want to get out?

If you still want the property, you can look at either hard money lenders or local portfolio banks as potential funding sources as well. Hard money lenders are very expensive (i.e. 4+ points & 15%+) and local portfolio banks will be cheaper and more flexible but time consuming to find.

If you want out, all the comments are good … consult an attorney, read your contract.

Now, another option is go RE-NEGIOTATE with the developer. It’s not like times are super good right now for builders and Florida isn’t ranking in the tops of the emerging markets list. Ways you can tackle this – figure out what a lender would approve you for and have the developer take that amount. Or have the developer carry a 2nd mortgage.

Again, it all comes back down to do you want this property. NOW the bigger question most investors (which I’m assuming you are doing pre-construction in FL) miss is how does this property fit into my overall investing & life goals.

Just some general thoughts.

Good luck!
Sandy Schaefer, The Rich Happy Investor - Fri Aug 8 2008, 07:35