small condo complex lending

[DanaCo]

I found a property with some tangled history that will yield GREAT profit if I can untangle it. Here is the saga...

Originally was one zone lot with a duplex and carriage house. An investor bought it with hard money, converted it to three condos, with the intention of refinancing into three cash-out loans. The rehab could be completed with the cash out, and then each unit sold off individually. Well... that is where the trouble started. Apparently there is no lender who will loan on a condo in a complex that small, because apparently Fannie Mae won't approve a complex that small. So the current owner is really stuck.

I can buy it with hard money. Then, if I can find a way for my end buyers to get loans (and to assure them that THEY will eventually be able to sell it also) then I can buy this project cheap and make some great money. (I know I could convert it back to triplex and treat it as an income property, but the numbers just aren't as appealing in that scenario.)

PLEASE! :SM030: Is there anyone out there who knows enough about this to help me? I have asked about 20 mortgage brokers, who all kindly offer to *see what they can find out* for me, and no one seems to know any solution. It is just killing me to see such a juicy deal languish... I know there must be a solution.
Thanks!

[Dan Auito]

I found a property with some tangled history that will yield GREAT profit if I can untangle it. Here is the saga...

Originally was one zone lot with a duplex and carriage house. An investor bought it with hard money, converted it to three condos, with the intention of refinancing into three cash-out loans. The rehab could be completed with the cash out, and then each unit sold off individually. Well... that is where the trouble started. Apparently there is no lender who will loan on a condo in a complex that small, because apparently Fannie Mae won't approve a complex that small. So the current owner is really stuck.

I can buy it with hard money. Then, if I can find a way for my end buyers to get loans (and to assure them that THEY will eventually be able to sell it also) then I can buy this project cheap and make some great money. (I know I could convert it back to triplex and treat it as an income property, but the numbers just aren't as appealing in that scenario.)

PLEASE! :SM030: Is there anyone out there who knows enough about this to help me? I have asked about 20 mortgage brokers, who all kindly offer to *see what they can find out* for me, and no one seems to know any solution. It is just killing me to see such a juicy deal languish... I know there must be a solution.
Thanks!

You do have a dilemma there Danaco, I'm out of this one maybe ask these folks as well www.interest.com/discussion/ (mortgage discussion) I would owner finance them and let them know that upon approval I would also finance their future buyers if they where well qualified, and while that was going on I would be thinking of ways to get the thing condo certified! Either way it looks as though the cashflow as a triplex would protect you if everything else didn't pan out. :huh:

[DanaCo]

Thanks, Dan. I have considered owning it and offering *forever* owner financing. I just think that I am limiting each successive buyer's and seller's option by doing that... and in the stinky market I am in, I am loathe to make it any harder for anybody. Sure seems like there ought to be a better solution... I will keep looking!

[Dan Auito]

Thanks, Dan. I have considered owning it and offering *forever* owner financing. I just think that I am limiting each successive buyer's and seller's option by doing that... and in the stinky market I am in, I am loathe to make it any harder for anybody. Sure seems like there ought to be a better solution... I will keep looking!
Danaco, it can't hurt to ask Dion : diond@evaluemortgage.com see what he recommends. Sorry couldn't be of more assistance on this one.

[DionEvalueMortgage]

Well, the reason you keep getting the "let me see" response is ....NO lender is going to lend on that! They can't. The only recourse would always be private money but that is what you already know and will not help the sale.

In regards to the condo price being more attractive, I am not sure you have real numbers on that. There can not exist any comparables for condo units such as those for an appraiser to derive value from.

Your best bet is to just face reality and sell it off before you get caught with something that nobody wants!