Looking For Equity Investment In Canda Project
We are seeking $3M of equity investment for 75% stake in the development. Our current financial projections are based on financing through the pre-selling of units through the use of schematic design and modeling. Construction costs are covered through the posting of construction bonds, secured through the pre-selling of units.
Based on a sale price of $1,100/sf, and assuming that all units are sold within twenty-nine (29) months of purchasing the site, and construction taking an additional 18 months, the projected ROI will be
$ 14,355,993.00
Please post here or send personal message for more information.
to make it official you would need a new note and TD/mortgage and to get the current 2nd to subordinate, that you were still in 1st.
I suppose you could just have him make monthly payments if they were willing.
Polk county in which state?
Your mortgage person is correct. They can only lend up to the Purchase Price or appraised value whichever is lessor of the two. If the appraiser feels it is worth $30k more I would go with that value. There are companies out there that do helocs on properties that have been purchased under a year, actually 3 months past the purchase they can lend to the appraised value. So having it appraised at the higher amount would be a plus considering that the appraisal is good for 6 months. I hope this helped. No cost and low cost Helocs are also readily available, not just through a local bank.
fireice wrote
1. My mortgage guy tells me that I can’t finance more than the lesser of the purchase price or the appraisal amount. True or false?
Maybe so with big banks but if you’re in a smaller town or use smaller banks it might not be so. Check with your local owned bank.
I purchased a property and local small town bank loaned me more than the purchase price. Only appraisal that I can think had/might have been down was a drive by that the banker did and mostly he just wanted to know where the property was located. You never know until you ask.
2. My appraiser tells me that he can appraise the property to where I want it.
Appraise to where you want it??? Sounds a little scary to me.
"condemned 4 family that needs some tlc"
A condemned building is going to take more than tlc.
Will the city/county even let you fix the place up?
You should be able to get a 110 LTV 203k loan for the purchase/rehab[ Edited by cjmazur on Date 05/22/2007 ]
The banks are becoming very wary of appraisals. It is very common that a lender does an appraisal review. Yes, the lenders will lend only on the lesser value of sale price or appraisal.
The loan program that is best designed for your situation is a convertible rehab loan. This program provides a 12 or 18 month construction loan period and then after construction converts directly into a long term loan product. Rate during construction is a little over prime.
The best part is that it will provide the funding you need for construction. The lender oversees payment to contractors and the loan value is place on future value after improvement. The formula to calculate how much money is required down is more complex than explanation here, but it can usally come out to some 10%-15% of future value.
Qualification requires decent accets and income- along with credit score. [ Edited by commercialking on Date 09/08/2007 ]
You could use hard money to purchase and fix up, then refi. More expensive but you can get cash out at the end.
I would think that you would have to go construction financing or hard money.
Who got paid the insurance settlement?