Another questions... are HM lenders sometimes just individuals and not an "institution"?  

mitchell,i have not. i am self employed and no w2 income makes thing very hard, from the borrowing aspect. i was hoping to deal with some institution that is local or at least regional and knows the area and how to lend in the area. i tried about a year ago with wells fargo and they would not do the loan at 50% ltv because hoa did not have audited financial statements. the only reason. so i would like to spear myself 6 month of frustration and deal with someone else. any advise???????????

. §§ 250.511b) oFunds held for more than 2 years and funds over $100 must be deposited in an escrow account federally or state-regulated institution.oThe landlord must notify the tenants in writing the name and address of the banking institution in which such deposits are held, and the amount of such deposits.Nonrefundable Fees: No StatuteApplication Fees: No Statute.

SBA's regulations on leasing require that the small business occupy at least 51% of the rentable property if the 504 project is for an existing building and at least 60% of the rentable property (with the intent to move into at least an additional 20%) if the 504 project is new construction.Eligible Borrowers: For-profit, non-publicly traded businessesTangible business net worth (including affiliates) not to exceed $15 millionAverage net income of the business not to exceed $5 million over the previous two yearsOwnership must generally be comprised of 51% U.S. citizens or Legal Permanent Residents (some exceptions apply)Examples of Property Types Fountainhead Finances:Medical offices or medical facilities (such as labs and clinics)Office buildings (including office condos)Warehouses (and other industrial properties)Day care facilities (for children or adults)Free-standing restaurantsLimited-service, flagged hotels (some unflagged destination hotels will be considered)Auto repair shopsAssisted-living facilitiesCall to ask about many other property types that are eligibleIneligible Borrowers: Non-profits (except sheltered workshops)Passive holders of real estate and/or personal propertyLending institutions (mortgage brokers and correspondent lenders are eligible)Life insurance companies (franchised agents are eligible)Businesses located in a foreign countryBusinesses selling products or services through a pyramid planGambling concernsBusinesses which restrict patronageGovernment owned entities (excluding Native American tribes)Consumer and marketing cooperatives (producer cooperatives are eligible)Businesses engaged in loan packagingBusinesses that have previously defaulted on a Federal loanBusinesses engaged in political or lobbying activitiesIneligible Use of Funds: Working capitalInventoryRolling stockBusiness “good will” or “blue sky”

I read somewhere that the new thing for ownership is to take possession in a trust as opposed to an LLC because banks and financial institutions view a trust as an individual and not a business and will offer faster and better financing to you and whoever your buyer is in the future.

The Urban Land Institute published a great book called Multifamily Housing Development Handbook.

Should I attempt to open a couple of more lines with other institutions so that I have more available credit to me or would that not work?

He may institute a buyer fee of 30k for any new buyer in the association, prohibit rentals or require tenants / buyers approval by HOA.

Once there are some assets on deposit with that institution and you have a proven track record, there is much much more discretion regarding deals on their part.

Loopnet just has the 3rd tier deals institutions don't want...