1st Trust Deeds on lots

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Posted by Darrel on December 04, 2001 at 12:09:44:

I have a client, a developer, who has 3 subdivisions under construction. The first subdivision has 76 lots for sale. These lots are finished and ready to build on.

Prices for the lots range from $90,000 to $174,000 and finished homes in the subdivision range from lower $500,000 to upper $700,000.

The developer has only sold to builders in the past for cash. I would like to propose that he sell to individuals (and others) for a cash down payment and carry a first for the balance. He has had several inquiries in this regard.

So, I would like to know how to structure these transactions so that the trust deeds could be sold for cash. Obviously, the terms should be set such that the developer could realize the most cash...

And, perhaps these trust deeds would be paid off in a short period of time when the buyers would get a construction loan.

The other subdivisions are under construction, lots not finished, but if this is successful, then there will be over 500 more lots (lower priced) available.

Thanks for any input,
Darrel in Colorado

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