Building permit before acquisition

[Lior Golan]

Hello,

I have a property under contract that I want to add another bedroom and another bathroom above ground. I had a plan to add them in the basement but this is not giving me enough value into the ARV so I decided with my contractor to add them both above ground.

The problem is that I am using financing and they are lending me certain % in the ARV, so in order to increase the loan about from them (they have a limit on how much I can lend with % from ARV) I need that building permit.

My contractor did the planning already, went to the city building offices for the permit and they told him that until the property would not title transferred. He could not get the permit!

Did you encounter in such an issue before? Is there any way that I can get these permits even though I didn’t close yet on the property?

FYI - I am a foreign national and I don’t leave there, so I can’t go with him.

[Lior Golan]

@David M.

I’ll explain you more briefly.

With the current situation of adding bed and bath under ground, the appraisal appraised the proper at 134,000$... but there is a comp with the exact building, year, SqFt, and construction that sold January that year that has these extra bed and bath above ground and sold for 165,000$!

So because the lender lends me % of the ARV, he lends me 65% if 134,000$, the rehab costs are something like 27,000$, that makes me put in closing more money than having 65% of 165,000$ ARV...

So I won’t to leverage that option and put smaller amount and these funds to maybe put in a down payment on other one!

So what do you suggesting me? I still cannot pull the permit BEFORE the acquisition? You said that “if it’s was for the owner...”?