Great Property
I have this great peace of property in North Hollywood on Oxnard St. it is zoned RD3 and the city told me I could build 2 houses on my lot or 3 unit APT. I was thinking of building it but I really don’t have the cash. So I was wondering what to do with it.
Get some renderings done, get a quote from a contractor on building the rendering, have an agent list the property with pictures of the renderings and expected completion date, Get a contract with earnest money. Take the contract to the bank, they will give you a construction loan if it makes sense.
I am new to this site and liked this post the best! This is exactly what the market is coming to and eventually it will be a race for banks to do exactly what you are proposing - stop losing money. With no buyers and the prices they are asking you can make a move to make the board listen. You simply submit a legal contract with proposed cash offer and keep submitted it should it get rejected. The bank board must review the offer - submit it to the Chairman. Once there are noticable solutions to a problem they have, with a cash offer, it will receive attention. Banks are like any other business, things always change - they may have new directives on a weekly basis, so keep trying.
The other way you can make your offer appealing is to create a visible plan to show you have completely analyzed the cash flows, proformas, etc. If you need help with that kind of thing, let me know and I will point you in the right direction. Banks like numbers and plans - just as in getting a loan, that is how they are used to looking at things.
Bryan
Right now, the income produced will not support a loan of ANY amount. It has the potential, however, to produce $100,000/ mo. under proper management. The problem is, the bank owns it for $4 M and I have to convince them that they would rather take $1 M and stop losing $30,000/ mo.