30% OWC-Do banks treat this as 70% LTV? - Posted by Chicago Katrina

import · January 17, 2003, 10:01am

Posted by Chicago Katrina on January 18, 2003 at 11:04:24:

Where can one find these banks that do not have the CLTV limits?
Yesterday, my bank said that they would lend only 80% of the non-owner-financed part (so %80 of the %80) But they are a very conservative bank.
Thanks,
Katrina

import · January 17, 2003, 10:01am

Posted by Chicago Katrina on January 17, 2003 at 11:01:09:

HEY hey hey creative RE meisters…

I am (hopefully) about to tie up a nice bldg. w/ 6 res. units and one retail (and therefore commercial)

I think I can talk the seller into 20%-30% carry back, and I would then have to find conventional (?) financing for the rest. I have NO cash right now, as it is all tied up in another development.

Question: Would the banks treat this as an (acceptable) 70-80% LTV loan or would it be a problem that I am not putting down any cash of my own? The seller’s lien would be a junior lien, secondary to any bank financing.I also need a construction loan, too.

This is a vacant building.

Any opinions?
Thanks,
Katrina in Chicago

import · January 18, 2003, 5:27am

Re: 30% OWC-Do banks treat this as 70% LTV? - Posted by James Strange

Posted by James Strange on January 18, 2003 at 06:27:54:

You need to find out if the lender has CLTV limit. Some do some do not.