Loan on Individually Titled Condos
Good afternoon. I have a difficult financing requirement. I recently purchased 12 individually titled units in Mulberry Gardens, a complex of 43 condos located in Phoenix, AZ. The vendor has 4 more units, but he cannot sell them because they are worth less that he owes. He owes about $200,000 and the 4 units are worth about $120,000 total ($30,000 each). I owe the vendor $220,000 as a vendor carry back on the 12 units I purchased. If I purchase the units for $200,000, he will reduce what I currently owe him by the $80,000 difference between $200,000 and $120,000. So, I am looking for a loan of $200,000. I am willing to add some of my current 12 units as additional security on the loan.Is there a lender who would entertain such a loan? by lamont_392_613 from Pheonix, Arizona. Aug 15th 2012
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Commercial or hard money is your only option.. Since condo's carry a greater risk then SFH, the lender will probably only lend to 50% to 60% LTV, so you might have to include almost all of your properties to purchase the remaining 4.. $30K x 16 units =$480K.. you have enough equity to do this type of loan.. I have some local sources for commercial / hard money lending.. on the commercial side, you will need all the supporting documentation and income verification.. on the hard money side, it's not bad at all and can close really quick.. but rates, and terms are yucky... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
It is going to be very difficult to get any form of traditional financing. The complex is too small and the percentage of ownership you have is too large. Your options are going to be a commercial loan secured by your units or a private money loan. Check with your business banker first. If you have a good relationship with your bank, that may be your best bet. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950
MIKE CONVIN (mconvin)
#6 ranked lender in Delaware - 202 contributions
hi: I am assuming these 12 individually units are financed and reported on your personal credit report? If so we can financed more than 4 but need more information. We also can lend on private money with low rates no prepay but process is not overnite...If interested, please contact me. Mike (703 505 5300) NMLS 754875
Gary H (Mod.Specialist)
#71 ranked lender in New York - 25 contributions
I had a situation like yours when I was an LO, a borrower ended up doing one commercial loan because there are multiple properties.
Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,256 contributions
please, go to my website www.yourloanpartnerforlife.com you might have to copy and paste, it depends on your server and you can call me at 602-330-1598 i do residential/ commercial loans.. with private investor money
Korene Clopine-Seaman (korene)
#69 ranked lender in Arizona - 90 contributions
We have a commercial lender that will lend money on a transaction like this. Call me 6233400934 or email me at korene@openmtg.com
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