70 Acre Recognition Equipment Partnership, Booth Creek Investment, Inc., Tax Matters Partner - Page 3

                                        - 3 -                                         
          The purchase price was agreed to be $4.30 per square foot                   
          multiplied by the property's total square feet.  The contract               
          provided that REI would finance part of the contract price and              
          that the remainder would be paid in cash.                                   
               BCI needed to raise funds to pay the cash portion of the               
          purchase price.  It approached Leonard Thomas, a real estate                
          agent and mortgage broker, to locate a party willing to finance a           
          portion of the acquisition.  Mr. Thomas brought BCI and State               
          Savings and Loan Association of Lubbock (State Savings) together.           
          He previously had been hired by State Savings to find profitable            
          real estate investments for the institution.  Mr. Thomas had                
          arranged 20 to 30 such investments for State Savings.  After the            
          closing of each deal, Mr. Thomas monitored the investment on                
          behalf of State Savings.                                                    
               State Savings was wholly owned by Terry Barker.  When Mr.              
          Barker acquired it, the institution was experiencing severe                 
          financial difficulties.  Mr. Barker had no previous experience in           
          the savings and loan industry and often complained about                    
          regulatory restrictions on the ability of a savings and loan                
          institution to participate in the business dealings of its                  
          clients.  In a bid to earn profits and save the institution, Mr.            
          Barker arranged for State Savings to finance numerous real estate           
          transactions in which the institution shared the profits.                   
               By commitment letter dated March 18, 1983, State Savings               
          offered to finance the least of (1) $6,400,000, (2) the appraised           




Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011