Anyone in the mortgage/banking/commercial loan sector?

[GN One Day...]

I really think you need to find a good broker in your area and ask them to talk to their lenders about a property with "grandfathered" zoning. If it was zoned residential when it was built, you should be allowed to borrow that way despite the zoning changes. I know I saw mention of that with a lender this week, but I can't remember who. It may have been Countrywide? If you have a broker that mentions them, check into it. If there's a local office, it may not be the same. Brokers get different programs and better rates than the direct offices. You're problem may be in finding someone to check on it.

 

[HRpartsNstuff]

Well, the "grandfather" issue seems to be no importance to anyone I talk to. What it is now is what matters. There are actually 2 issues with that,
1. The can't get the industrial loan because it "looks" residential, and
2. If the house burns to the ground, we can't spend more than 60% of the fair market value to rebuild it. Then the "bank" is concerned that will lower the overall value of the property & jeopardize their interests.

I tried Countrywide, they checked with underwriting, they can't do a thing with it.

I checked zoning again to see what they can do, and made this a do or die situation I believe. The property is actually split long-ways into 2 parcels. If we can get them to change the zoning on parcel 1 (garage & pavilion) to industrial only (easy part), and then change parcel 2 to residential only, life would be fine. Then we can get a loan on both, live there happily ever after, and manufacture/assy/warehouse all we want for years to come.
Sounds like a Ferry tale to me

 

[HRpartsNstuff]

Any venture capitolists out there???

Need around 40-50K to make it easy. It would be a second mortgage with the house/property as collateral, and be a nice steady income/investment for someone. Looking at a fairly reasonable interest rate or it won't be practical to do this way, but around 6-1/2 to 7-1/2 % is a good payback on investments right now. I would also put my '53 Buick twin turbo small block project up for collateral and have the business "co-sign" on it to promise to pay as well. Trying to make this a good return for very low risk deal for someone.

Extra bonus for helping out would be any parts we can get you for your car/cars would be at dealer cost or less! This goes for the length of the mortgage, so it could save thousands over the years!

Any takers???
This might be able to be done with a group of people too.
Come to think of it..., if everyone on the board loaned $100 each..., that would just about do it TB.com discounts for everyone! Oh wait a minute, can't afford all the stamps to pay everyone back! Then again, there's always PayPal They could also be considered HRpartsNstuff "Savings Accounts" that earn interest & can be redeemed for parts (& stuff) at any time, guaranteed with real estate. Hmmmmmm.....

HR savings-N-loan Christmas Club accounts

 

[HRpartsNstuff]

In reference to the above post, in reality 20k would probably get things done. Seriously, if anyone out there in the Buick community is in a position to carry a 2nd mortgage for a few years, please contact me directly. I still have others to call & more web searching to do. There HAS to be some company out there that will do this loan. A few good people have told me this, and it makes perfect sense. Just got to find the square peg for the square hole I guess.

Going to put an offer on the table & start a re-zoning plan come Monday. If we can re-zone the one lot with the house to residential, and keep the other lot with the garage industrial, it should work OK. It's a 3 month process, and NOT guaranteed at all, and costs $300 to try. I am not sure if I want it if it all has to go residential. Most places get away with running a biz in a residential area, doing it right now. Of course this all tips them off & gives them an excuse to check up on us.
Thanks for listening

 

[Mease Performance]

WOW!!!!!!!!!!!!

that property out here would be worth WELL OVER $400K HOLY COW!!! I need to move out there!!!!!!!!!!!!!!!!!! You couldnt buy the garage doors on that shop for $129K out here!

Good luck with the property Paul, it took us almost a YEAR to get permits to build on our property!!!!!!! dont give up!!!!

 

[myclone]

This is Lisa aka Lghtemup. Here are some phone numbers for various lenders that might could help you out sorry it took me so long to get these for you.


Sterling National Mortgage 1-877-684-3863

First Horizon 1-800-615-1931

Equicredit corp 1-704-643-1650

Expanded Mortgage Credit 1-704-542-8601

The Associates Home Equity Div
1-704-841-7171

Coastal Home Equity 1-704-552-1770

EquiFirst Corp 1-800-272-3477

Decision One Mortgage 1-704-887-2800

Centex Home Equity 1-704-424-5550

AGEIS Mortgage Corp 1-336-292-4665

FirstStar 1-800-285-7043

SIB Mortgage 1-888-742-8551

Accredited Home Lenders
1-888-876-3766

Wells Fargo 1-800-999-7574


Hope at least one of these can help you out.

Best of Luck

Lisa

 

[HRpartsNstuff]

Thanks Lisa, for the info & the call! I think you hit the nail on the head with how I was going about this. No bank or lending institute seems to want to consider this residential property, no matter how it looks. Like you said, I need to be asking the question:

What is the max loan to value percentage you can loan on industrial/commercial property that I will be using as a residence.

Just stay away from residential loans. No zoning change, no jumping thru hoops, etc. We are thinking the commercial appraisal will come in higher, and may allow the seller to hold a second mortgage on paper, and forgive it at time of first payment. That way it looks like we are only borrowing the 60-80% of the value. This seems like the best chance so far. The one lender ran some rough numbers & came up with one place that would loan us the 125k (or so) to get it if we had 10% of the inflated number (190k in this case), which is 19k + closing costs. That is really pushing it & basically out of reach for us right now. It kills me to be this close & not be able to make it happen.

If we try the re-zoning plan, either half or all of it, it takes approx. 3 months. In the mean time, someone could offer cash or have a non-contingent offer & take it all from us. Even though I would feel like letting the lead fly, there really isn't much I can do about it. Those with the money get the best treatment, in just about every aspect of life. Makes it really hard for the little guy trying to get ahead.

Got a lot of calls to make tomorrow, got to be an answer somewhere.
Thanks ALL!

 

[Low Budget]

It's November 7th. How did you make out with this? I hope you got your money somehow.

I realize it's of no help, but if I had any money to invest, I would have given serious consideration to your request. I can't believe everyone just let that slide! Surely there is someone on this board with money AND a desire to help.

Edit:
Nice products by the way. I put one of your drivers side poly mounts on this past spring when I installed my new engine. Very nice piece. Far superior to the crappy stock part.

 

[BlownZ]

Without a lot of cash on hand then you have only ONE choice. I would forget calling any major loan outlet as they are going to give you the same canned response.

You need to get with a Hard Money Lender. This is something akin to a loan shark however they can provide you with money when you need it and they have far fewer requirements than most outlets.

A hard money lender usually wants to see no more than a 60% LTV so if your property truly is worth 250k dollars then they would loan up to about 150k on it. They might run your credit, they might not as most of them don't much care if they stand to profit from a foreclosure anyways. It is expensive as they will generally charge a lot of points up front and the interest rate will vary. If you really, really want to go for it then the first thing I would do is spend the 3-400 dollars to get it appraised.

Most only use hard lenders to buy investment type property that they tend to fix and sell relatively quickly in order to cash out however in your case you might consider the hard money lender to buy you the time to go through the rezoning process or to save up 20% equity and then refinance and cash out the hard money lender.

It sounds like you are leveraged pretty heavily into your business right now. You might want to consider staying put and not incurring any more debt until you can dissolve some of your existing debt. That is certainly your business but the number one cause of failure in most businesses is poor cash flow. Good Luck.

 

[HRpartsNstuff]

UPDATE:

We dropped that property for 2 reasons:

There was no financing available to us that made any sense to go with. At the higher rates & big money down, it was not really affordable. The only way to get "normal" financing was to change zoning to residential. That took a lot of the appeal away from it, and some of the value as well.

Once we looked at doing that & owning a residential property, we started to compare the property to other residential properties. The pics everyone saw of it make the outside look nice, but the house was small & outdated inside. It would have taken a LOT to fix it up & make it nice, and would have been really hard due to the original structure being a log cabin. We figured it was easier & more economical & practical to go with something that had a nice house that needed little or nothing, and build a pole (or steel) building if it didn't have one. We also realized a lot of the appeal was in the landscape (trees & rock walls/edging), which doesn't really add solid value to the property. We can stack up our own rocks

We came across one that had the same size lot and MUCH nicer house, but only a 2 car garage. It does have a 24 x 54 basement that gives us a LOT of space to work out of right now. We looked at putting up a 40 x 80, but it made more sense to wait until next year. We got snowflakes blowing in the air today! We are about 1/2 moved in right now, and trying to keep things flowing as best as possible. It will be a few more weeks until things start to smooth back out again.

THANKS for all the input & ideas along the way. Back to prepping the basement for paint
It never ends...

 

[Low Budget]

I'm glad it's all working out in the end. Good luck in the new place!

Jeff