Hi
I have 2 large plots of land which I would like to create 2 resorts on.

The plots are each over 2 ha, one is hillside, the other is beachfront, both are ideal for a high end resort development – around 15 on each land.

I would like to find out the options to get funding. I thought that the obvious option would be to sell the villas off the plan to have 100% of the development funds covered with unconditional contracts for the banks to lend against.

However, is there a better way to raise funds than this? If I then wanted to get a resort management contract, then it would be difficult, as they only like 1 owner, not multiple.

So what other avenues for raising the development capital are there?

Thanks
Jasper

Hi BB, really great reading all your posts! Thank you so much for these, I have this forum as the number 1 favourite and I read the updates everyday!

I am Australian, have been researching for about 2 months now, I have narrowed my areas down to: Naples or Cape Coral/FL, and Atlanta, GA. My reasons why these locations: an average mixture of undervalued properties and good rental returns. I am looking to buy in cash only (at this stage, can’t be bothered to go through all the complexities for the lenders, may refinance in a year or 2), my budget for 2 houses is around $200k.

The one thing I wanted to ask you – what is your opinion on auctions? For eg. Auctions.com – it feels to me like a kid in a candy store – there are so many great properties with such low reserve auction prices.

Has anyone had experience with auctions in the US? What is generally the rules of thumb for bidding eg. do you just bid the reserve price that is stated on the property, or should you bid more, or start less??

Secondly, what are the liabilities that are purchased? I really don’t have a clue when reading the titles, it is such legal speak and really hard to understand.
Can I give you an example, can you tell me – do we also have to pay out the mortgages on these properties??

For example: taking a very random property: http://www.auction.com/property.php?page=1&venueId=1663&auctionID=H-213&itemID=243713&listPaging=25&start=0

It states in the “Chain of Title”:

Warranty Deed from John Wieland Homes, Inc. to Charles E. Wells, Sr., dated 1/26/96, recorded 2/20/96 in Deed
Book 20653, Page 336, Fulton County, Georgia Records.
Deed of Heirs between Barbara Hambry Wells and Charles Edward Wells, Jr. as legal heirs of Charles Edward
Wells, Sr. and Barbara Hambry Wells and Charles Edward Wells, Jr., dated 3/81/04, recorded 3/26/04 in Deed
Book 37294, Page 513, Fulton County, Georgia Records.
Quit Claim Deed between Charles Edward Wells, Jr. and Barbara Hambry Wells, dated 3/18/04, recorded 3/26/04
in Deed Book 37294, Page 516, Fulton County, Georgia Records.
Security Deed between Barbara Hambry Wells and MERS, dated 12/21/05, recorded 1/9/06 in Deed Book 41736,
Page 225, Fulton County, Georgia Records, conveying subject property to secure a note in the amount of
$380,000.00.
Security Deed between Barbara Hambry Wells and MERS, dated 12/21/05, recorded 1/9/06 in Deed Book 41736,
Page 248, Fulton County, Georgia Records, conveying subject property to secure a note in the amount of
$95,000.00.
Foreclosure Deed between Barbara Hambry Wells and Aurora Loan Services, LLC dated 11/3/09, recorded
11/30/09 in Deed Book 48571, Page 544, Fulton County, Georgia Records.

So – can anyone tell me – what is the total mortgage liability to take over on this property? Who is responsible for this, the new owner? So is it right that this is added to the purchase price?

Many thanks for your help

Louise