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Old 04-15-2015, 01:30 PM
 
3 posts, read 1,912 times
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I currently lease a condo for which I negotiated a purchase price up front. I'm preparing to execute on that option. Meanwhile, an adjoining unit has been sitting on the market for about 8 months and I think I can strike a deal with the owner for its purchase.

Given that credit is sufficient, condo bylaws permit combining units, etc...is it possible, to get a non-back-alley lender to work with this scenario. As I mentioned, these are adjoining units in a 10-story building and we would get them properly combined as a single unit. Both are currently held by different owners. This is in MO, if that makes any difference.

Thanks!
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Old 04-16-2015, 12:44 PM
 
Location: New York
2,251 posts, read 4,173,039 times
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Quote:
Originally Posted by jasonblack View Post
I currently lease a condo ........
Jason - Welcome to City Data

You are talking about purchasing two separate condo's and combining them into one unit.

Commercial loans can be for multiple property's. You'll be facing high interest rate ARM's, and are based on assets not credit. For conventional low fixed rate financing. Do two separate loans providing you show enough income. Once you have connected both units, refinance into one loan.

It might not be worth doing what you envision. How long are you thinking about living there?
  • In my opinion do not think it is a wise idea to purchase a condo. Thought the building bylaws permit combining units. Your are locking your self in keeping the home owners association happy, paying larger monthly HOA fees.
  • If you are looking for more living space, suggest purchasing a home instead. Value's of a Condos do not rise as fast as a Single family home does.
  • Ever hear of the story about trying to sell an 800LB Gorilla? Since standard Condos are not quickly selling (other unit on market for 8 months). By converting a single condo into a larger condo. May hider your exit strategy when you are looking to sell the property.
  • Located in a 10 story building. Later when you go to sell, value is determined by what other Condo's are selling for around you. Meaning you may have to reduce your selling price, loosing what you invested.
  • Strong suggestion before you do sign to purchase. Reach out to other condo owners in your building. Either talking too, on a letter, or email. Find out their experiences, especially the ones that are trying to sell. You may learn something to help you determine you next step.
Good Luck..


..

Last edited by Modification Specialist; 04-16-2015 at 01:25 PM..
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Old 04-17-2015, 11:19 AM
 
3 posts, read 1,912 times
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Thanks for the response. I understand that condo's are, generally, horrible investments. However,these happen to be in a building that contains a nationally known tourist attraction so it's a fairly unique situation. 'Unique' is rarely good in real estate but it's had a positive impact on the prices here. Of course, there's always the risk of that entity going under but it's a risk we're willing to take. Otherwise, I agree with your assessment and recommendations regarding condos.
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