Posted by JT-IN on September 16, 2002 at 09:01:05:
M:
Comm’l Bankers will base their decision far more on your financial strength and the income from this underlying RE than the more conventional way; (3 comparable sold props).
Their appraisal would be that of a comm’l nature, taking into acct the income from these two places; (of course this will cost more than other appraisals that you have been familiar with to date). This is not to say that you may not run into a more conventional thinking banker, and if/when you do, just know that there are other options out there. This is a Comm’l application, and your challenge is to find someone who will treat it that way from an appraisal and lending standpoint.
Shop until you find that person/Bank… You will be glad you did, as it will make life much easier for you in some other deals, as well.
Posted by michaela-ATL on September 16, 2002 at 08:04:11:
i’ve got a property with 2 houses on 1 lot under contract. was planning on buying with hard money, repairing, renting and refinancing. just spoke to the mortgage broker, that i normally work with and he told me, that he couldn’t refi an unusual property like this and he couldn’t imagine anybody else doing either?
is that correct? is this something, that i better back off from? i would have great positive cashflow from rental incomes, but don’t want a deal where i’m stuck with hard money forever.
michaela
Posted by JT-IN on September 16, 2002 at 08:19:25:
Michaela:
Instead of speaking to a Mtg Broker, try a Small Comm’l Bank, speaking to a Comm’l Loan Officer.
your results should be greatly different in this arena. Of course the rates will be slightly higher, (+ 1 to 2 %) over what you may otherwise be looking at now. You will avoid dealing with Fannie Mae guidelines with the Comm’l Lender…
Posted by michaela-ATL on September 16, 2002 at 08:36:07:
thank you for that tip, jt! do they not base their appraisals on comps? i was told, that the problem would be finding comps of 3 other properties with 2 houses within a 1 mile radius sold in the past 6 months (the chance is practically zero)
michaela