I have several investors who have or will be converting their multi-unit properties into condos. I need financing for the purchasers. Most of the buildings are 6-12 units, however, there is a 27 unit and 40 unit complex being rehabbed and converted. Majority of properties are 3-4 stories. 6 unit property that may be issue: low rise building (3 stories); each unit is <850 sq. feet; all are 2 bedroom; 1 bath. Complete rehab of interior and exterior, however. Looking at current and former tenants as prospective buyers. Any and all contacts; numbers and suggestions welcome. Sellers willing to assist with closing costs. Properties located in the western suburbs of Chicago and near Southside of Chicago. Need fast turnaround. Each buyer will be prequalified prior to submission (in- file trimerge; proof of income and downpayment, therefore, prospective loan parameters are needed.
financing for condo conversions: IL
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I’ve run into this before. If you’re a broker you’ll probably have a hard time with this. What I’ve seen is usually a big local bank does the financing at or near conforming rates and shelves the loans for a 1-2 years before selling on the secondary market. The problem is the condo complex isn’t warrantable until it meets owner occupancy rates, but of course the complex isn’t warrantable until some units are sold, etc, etc. A big bank can sit on the loans until the occupancy issues are resolved and the HOA is under the control of the tenants. That’s hard for a broker to pull off.