I have an investment opportunity for a home in Arizona that is valued by broker opinion at $700k. There is a 1st loan on the property at $250k and the owner needs $310. He is not able to secure funding on his own. The property consists of a newer 4153 sq ft home with a 828 guest home on 1.14 acres.
The offer is for an investor to come in and buy the property with funds of $560 to take out the 1st and owner needs. The owner will then lease back the property with an 2 yr option at $660k. They will offer a 9% return on the $560k from a combination of lease payments of $3500 a month (Lease) with the balance to be paid in advance and held in escrow for 1 year. At the end of the first year, if the owner doesn't purchase, they will replace the funds in escrow, pay to the investor for a second year and increase the interest rate to 11%. Let me know if you have someone that would move on this with a conditional LOI by Thursday 2/2/2017. The intention is to close within 10 days if possible.
I appreciate all comments on this structure.