A month ago, I reported that payments on my investment in commercial property in Louisiana were close to resuming. I got word today that the lawyer who was drafting the second mortgage has been swamped for the past 2 weeks, but he promised to get a draft of the mortgage out today. The second mortgage holders have the funds ready to pay the first mortgage holders (including me) and we're just waiting for the paperwork to be finalized. The loan is about 4 months past due now and when payments resume, they will include past interest and late fees.
I also got the word that part of my investment will be repaid. My total investment was split over a couple buildings: $120,00 on two main office buildings and $30,000 on a parking garage. My portion of the parking garage note has been bought out, so I'll get that part of my investment back plus interest and late fees. I just sent over my bank wiring information, so I expect to receive the funds by the end of the week.
Tuesday, May 01, 2007
Another Louisiana Update
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3 comments:
Well, that would be comforting to me to receive back the $30k plus late fees & interest in arrears... At least that reduces the total investment you have out on this project, since it seems to have some flawed leadership..
Chalk it up to good experience, as long as you get the rest of the cash out!
But with that kind of cash available, I'm wondering why you aren't looking to acquire more properties? $150k should allow you to build your Tulsa portfolio to enable you to take advantage of more competitive management rates, as well as warrant better attention...
I have no concerns about getting the rest of my investment back. The guy who owns the Louisiana properties may be a jerk and hard to deal with, but he and all the other investors involved are professionals and have worked hard to make sure no one loses money on this.
I'm not putting this money into other properties because it's not my money. It's money I've pulled out against my HELOC. I'm making money on the spread in interest rates between my return and what the HELOC charges me - right now the spread is about 5%. But since it's not my money, it's an infinite ROI for me. Somewhat risky, yes, but before I went into this, I made sure I could handle the HELOC payments if the deal went south. This was a good exercise, since the investment has not paid for four months and I had to put my contingency plans in motion temporarily. I have been able to meet the HELOC payments without problem, even without the investment income.
Interesting... Definitely risky, but no risk, no reward!
And if this does pan out, that would be great - you would have succeeded at making money from nothing! hehe... That's great...
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