We all want to enjoy our Sunday, but if you are in the mood for some reading and haven’t done so already I recommend you go and read the comment section below the Charlotte Observer article on the VUE Charlotte. Last I checked, there were 54 of them. I think you will find a few very interesting and I am sure we will be discussing some of them in upcoming posts.
I also want to share with you an excerpt from a buyer that wrote to me earlier in the week before the article was published. It was again along the lines of getting creative so that we could secure a win-win for both the Vue Charlotte and ourselves. It seems almost naive after reading the article in the Charlotte Observer, but we can’t give up hope that sometime soon MCL will actually begin working with us instead of seemingly against us.
I want to thank once again this buyer for contributing their thoughts on the VUE Charlotte. Please share yours in a comment or write to Vuebuyer10@yahoo.com.
The discussion started over early morning coffee and continued over happy hour Chardonnay about what we could do to remedy our “no way out” situation regarding The Vue. Lately we have been taking the Scarlett O’Hara approach, as in “I’ll just think about that tomorrow”, but after reading your post a couple of days ago decided to take your advice and try to think up something new.
Actually, it sounds like many of us are having the same idea. We didn’t call our idea equity sharing, but that, basically, is what we came up with to save everybody’s bacon. We’re taking the high road, thinking that MCL would welcome a way to get us all out of trouble and maybe someday even make a profit. We’re hoping CharlotteJW’s option #2, where MCL holds on until the bitter end, taking us all down together in a twisted scenario of corporate greed, will not become a reality.
Bottom line, MCL has to allow appraisals to inform the sales price on the units. We would all get our loans (maybe even with a teensy down payment of 5-10% if 70% of the units were under contract or actually sold as per HUD/FHA/VA requirements).
At the closing, along with the loan docs, each buyer would execute an instrument (smarter people then us would have to decide what kind of instrument) stating that, upon the sale of the unit, MCL and the seller would split any equity or difference between the loan amount and the sales price. The dollar amount of MCL’s equity would be capped at whatever they would have received from the sale of the unit under the original contract and would be noted in the instrument. This would be recorded at the time of the sale documents as an encumbrance against the property.
For this to work, however, MCL would have to get the approval of whomever holds their loan. That lender would have to agree to a deferred profit, just like everybody else. I’m not sure, logistically, how that would work, but maybe it is possible.