All Forum Posts by: David F.

A preforeclosure period of 120 days is required before a lender can enter foreclosure for lack of payment.  Rather than that, if a loan is called because the property underwent a condo conversion (apartments into condos) or subdivision process without the lenders awareness/approval, would they still be required to offer a preforeclosure period before being able to foreclose, as is the case for lack of payment?

I plan to raze a house I own in SD county and build a quadplex on this one parcel.  I've discussed with the county phasing the buildout in 2 steps, building 2 units at a time.  After those 2 are occupied with tenants I'd proceed to build the other 2.  

My question pertains to impact fees.  I understand they are due when the building permits are pulled.  I can't get a straight answer from the county.

Does each unit have its own building permit that would be pulled?

If so does this mean I would pay the impact fees on 2 separate occasions when each pair of building permits are pulled (even though all 4 units are on one parcel) or do I have to pay for all 4 at once?  Thanks in advance.

I own 10 townhome-style apartments on 1 parcel.  They are leased out.

It is zoned R-2 which allows for Multifamily which is defined broadly in the Definitions sections of the General Plan as "Dwelling, Multi-Family - A building containing three (3) or more dwelling units. The term includes cooperative apartments, condominiums, and the like."  I've read through the General Plan and there is nothing else that broadens or limits this description that I can find.

Generally speaking, does this mean that I should have ministerial approval to perform a condo conversion of these already-built-out units in the same sense that I would have ministerial approval to submit plans for a new construction condos if the land were still vacant?  

I just want to get some opinions on this subject before I delve in.  Thanks in advance.

 The zoning is R2, which includes a wide variety of options that includes multifamily, which is defined in the general plan below in this excerpt.  So, I don't believe it would require a rezoning.

"Dwelling, Multi-Family - A building containing three (3) or more dwelling units. The term includes cooperative apartments, condominiums, and the like."

My solely-owned LLC owns a 10-unit townhome-style apartment building in TN. All units are identical. I am considering selling units off as they come available as co-op's. Its doubtful that the municipalities involved would sign off on a condo conversion or subdivision, as their aren't many rentals in the area. However, there aren't many good tenants as I've come to find.

Condos in neighboring counties go for $220/sqft, apartments $135/sqft. Typically, co-op's are less valuable than condos for a number of reasons such as supply/demand, lack of investor interest, older units, estate planning issues, financing and board policies. 

However, these units are new and there is not a significant oversupply of any kind of housing in the area currently. Additionally, by virtue of owning all of the units I could, with the help of an attorney, construct the bylaws in such a way to maximize value and eliminate bylaws that would be value-restrictive.

I've talked to a couple of non-QM lenders who could provide financing to buyers under such a scenario, but the tricky part is appraisal value, especially in a state where, according to Redfin, no co-op's have sold in the last 5 years.

If I got a couple units sold using seller-financing at $220/sqft, since there aren't any other co-op comps, would this provide a basis upon which an appraiser would provide a valuation closer to $220/sqft than $135/sqft? Any advice is greatly appreciated.

Both the shared appreciation mortgage and refi mortgage would be on the same property, the shared appreciation being 2nd lien position.

Both the shared appreciation mortgage and refi mortgage would be on the same property, the shared appreciation being 2nd lien position.

All things equal and assuming that other loan parameters like DTI/etc are met, does having a share-appreciation mortgage/home equity investment/reverse mortgage disqualify one from getting a refinance from a conforming/agency loan program?

I have a tenant who didn't have access to 1 room because of repairs that needed to occur.  As a result they have requested rent to be pro-rated for that month.  They are required to have a renter's insurance policy in place.  I understand renter's insurance policies reimburse tenants if/when they are required to be fully displaced from a residence, would a typical renter's insurance policy reimburse a tenant in this situation even though they never had to fully move out, just out of the one bedroom?  Thanks in advance.