- 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 appraisedPage: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011