Lending

10 Replies

Someone I know has a 6 condo package deal under contract which requires a 5k down payment. Which would be the Best way they should go about it???? Help with any suggestions,links,contacts ect .......

Six Condos ... not sure if I would call that a package or a booby-trap.

Are they all in the same building/complex?  I gather the condos are being transacted as separate units as opposed to purchasing a share/piece of the complex.

You can hunt around to local lenders to find one who will underwrite all six units using a blanket/portfolio loan.  The alternative is to finance each one separately.  Naturally there are advantages/disadvantages to both approaches.

The condos sell for 65k in that area, they are fully occupied with good roi. It's a package deal because the more you buy, the condos will be discounted. They already have the loan in place just need a loan of 5k for the downpayment. Yes they are all in the same complex 

@Marvis Brown

I didn't glean the need to borrow the downpayment from your OP.

6 x 65K = 390K.  A downpayment of 5K is 1.3%, so I gather you are dealing with vendor or private financing as a conventional lender would require you to come out of pocket to a greater amount.

If you have vendor/private financing, they may not have issue with you borrowing your downpayment - though given how small the down payment is, as a vendor, I would be uncomfortable with the buyer having to borrow that amount.

Your best bet is to find a friend, family member, or partner, but be prepared to answer the question of why you are needed if you have no skin in the game.

they have it under contract for 233k sorry for not providing in the last message 

Originally posted by @Marvis Brown:

they have it under contract for 233k sorry for not providing in the last message 

 Then a 5K down payment is still only 2.2%, so the lender is not conventional ... which means they may tolerate borrowing the down payment (depends on how badly they want to move the units).

No conventional, he would refinance in 6 months into a conventional  

Originally posted by @Marvis Brown:

No conventional, he would refinance in 6 months into a conventional  

If he is looking to refinance into a conventional mortgage in 6 months I hope he did his research. If there's an HOA attached to those condos, and the owner occupancy is less than 51% he won't be able to get traditional conventional finacing.

How many condos are in the project?

6 condos in total for $233k, if he's not able to refinance in 6 months the exit strategy is to hold or to sell some or all. 

pop it on your credit card if you can get 6 condos for a 5 grand down payment you already did the tough part the condos 

Good idea Steve, any other opinions or programs???

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