Posted by Ed Garcia on September 19, 2003 at 10:16:05:
DJ,
First of all using your numbers, your LTV is approximately 76% not counting cost, which is high for Hard Money. Most hard Moneylenders lend at 65 to 70%.
Secondly if the units are not individually deeded, then this deal can only be recognized as a 7-unit apartment building.
So I can see why you?re having problems. Unless you have a private investor with the money to do the deal, or are financially strong enough to cross collateralize the deal with another property and go to a small bank not a broker, which I don?t think you can do, I have no advise for you at this time that would work in the remaining time frame.
If the seller would give you time to get the property individually deeded then you might be able to piece meal buying and selling the deal. You could have leased optioned the entire 7 units, got individual deeds on each unit and bought them as you sold them. I think we both know that it?s to late for that now. Since you haven?t performed, and the seller has already lost a previous sale, chances are that you have lost creditability with the seller.
Posted by DJ-n-NC on September 19, 2003 at 08:09:59:
I have a friend of mine that builds investment properties for individual. He recently completed work on 7 townhomes for an investor who when it was all said and done was unable to purchase them. He offered them to me at extreme discount $660,000 for all 7. I assured him I could close quickly (within 10 days) and so we locked in the deal no earnest money or anything. I went to a hard-money broker friend of mine who assured he could get the deal bought for me in just a few days because of the favoralble terms, each unit appraised for $123K, even with no money down. Well now I’m three weeks out still haven’t closed and about to lose the deal. It has been one thing after the other. The supposed lender and has taken me through the entire standard lending process which I could have gotten at a regular lender. I was under the impression that the whole purpose of a hard-money lender was easy qualifing as trade-off for terrible terms. I have good credit I was just trying to move fast, but had I konwn it take this long and I’d have to go trough all of this I’d have went to a regular lender. This supposed hard-money lender’s problem now is that he wants all the units deeded seperately which they are not. They were built for one individual who did not need all of that and now the lender seems to be stuck on the fact that they are all being sold on one contract as one deal. They are copmlaining that with the deal structured like that it menas it is all or nothing which is exactly what it is and they (the lender) don’t like that. They want the ability to close on a few at a time and stop when they are ready, which if it is before all 7 are closed will leave me and my seller out there hanging. Can anyone help?