Bill Hearne, (well known for speaking his mind) bought back the 50 acre parcel of property he sold to Developers who filed bankruptcy. The property was sold for something like $10,000,000.00. Mr. Hearne held the 1st mortgage on the property and bought it back for $4 million.Mr. Hearne did everything he could to help the Developer by holding off payments for more than 2 years but the 2nd mortgage holder had given up and forced the property into foreclosure.
Mr. Hearne has 3 serious buyers for the property again and is confident if these people qualify the property will be re-sold again in the very near future.
After the sale was completed today there has been much talk of County Executive Rick Pollitt purchasing 5 acres of land from the old mall for $300,000.00 an acre. Do the math Folks, something just isn't right.
Which property did he buy back? Where? Near Olney Road?
ReplyDeletehe sold it for $10M but bought it back for $4M-I have a couple questions in regards to this.
ReplyDelete1) Did Hearn actually receive the $10M in full for the property?
2) If he did receive the full $10M or anything more than $4M, shouldn't he technically be subject to capital gains taxes?
I wonder how this works out. I'm not saying the this is necessarily the case here, but it seems like it could be a pretty good scheme if you could go buy a $10M property from a friend, fold on your financing, allow your friend to buy it back for less than half of the oringinal sale price and then still have the oportunity to sell it again. Split the profits down the middle-who cares if you're bankrupt, you just made $2.5M+! Makes you go hmmmm...
A little inside deal maybe.
ReplyDeleteFor double the amount he wants to pay Natelson ($1.5 Million) for just 5 acres at the old mall, Ricky Pollitt could buy the entire Hearne property (50 acres), I'll bet.
ReplyDeleteCapitol Gains would have been managed for the tax year the property was sold. (2 years ago according to the post) He should not have to pay gains again on the buyback.
ReplyDeleteWill they bring back the golf facility that used to be there?
ReplyDeleteHey Dot Truitt:
ReplyDeleteWE WON!
Considering this is my backyard now what will become of it? Hopefully no more rapes and attemted murders for a start.
ReplyDeleteMr. Hearne, please do what's good for the community, not the bait and switch we got.
ReplyDeleteneighbor
Anon3:46
ReplyDeleteIf he received the 10 million he originally sold it for he would not have had to foreclose. Duhhhh
Unfortunately,the appraisals that were used for the mall property are more than a year old and in order to utilize state funds,appraisals are required.
ReplyDeleteThe council did the right thing on Tuesday by delaying a decision.That land is needed but the price is too high.
Natleson has NEVER performed.He has not met one deadline.The city/county should condemn the property and get rid of this guy once and for all.
Hearne did nothing wrong and neither did the people he foreclosed on. The economy ruined any chance the owners had of getting financing to complete the project. The natural course of events unfolded with Hearne having to take the property back due to his not being paid.
ReplyDelete