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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (12464)	12/14/2006 2:58:00 PM
From: Elroy Jetson	Respond to of 217689

Letting the other guy borrow to build the buildings, while you keep the land, sounds like a dream solution. Except that it doesn't work in real life. No lender will lend to build buildings without a mortgage on the land as collateral. In Los Angeles this kept the land owned by the Gilmore family trust, adjacent to their "Farmer's Market", undeveloped for decades. They had owned the land for the past hundred years from prior oil production. They finally realized there was no alternative, so let a developer with a checkered history of success, Rick Caruso, build a wildly popular shopping center there. But they had to agree to a mortgage on their land in the process. Of course they got Caruso to put up much additional collateral, but without the mortgage on their land for the improvements the deal couldn't be done. Land leases sound very clean and safe, but getting there isn't. .