Hi SE experts, I have a questions about alternative financing sources. (i.e. not typical mortgage banks) I want to know what companies I should look into? And if it's even worth it? Here's why. I am currently a COOP shareholder, and my next door apt just hit the market! I did the math and floorplan analysis. Conclusion is to go for it (with 70% enthusiasm). While the debt-to-income and LTV etc... [more]
Hi SE experts, I have a questions about alternative financing sources. (i.e. not typical mortgage banks) I want to know what companies I should look into? And if it's even worth it? Here's why.
I am currently a COOP shareholder, and my next door apt just hit the market! I did the math and floorplan analysis. Conclusion is to go for it (with 70% enthusiasm). While the debt-to-income and LTV etc look good with mortgage banks, I am a little worried about the COOP board side. Obviously, my monthly cash outflow will almost double, and I have no idea if the board considers bonus etc.
The seller's broker suggested "all cash" (of course, this makes her life way easier too). And I can seek alternative financing for the short term, then get mortgage later once the combination is done. The key is not to have this show up as liability on the paper.
I am entertaining this idea... but I have no idea where to look? and what's the "premium" I would end up paying?... I absolutely do not want to end up in a loan shark's pocket.
Thanks for your inputs.
[less]
Response by vic64
over 12 years ago
Posts: 351
Member since: Mar 2010
Next door meaning side by side, or across the hall way?
Ignored comment.
Unhide
Response by vic64
over 12 years ago
Posts: 351
Member since: Mar 2010
And I think all new money sources will be scrutinized. Even is that alternative financing were from your parents.
Ignored comment.
Unhide
Response by tbontb
over 12 years ago
Posts: 56
Member since: Dec 2008
Yes, next door as side by side, so it's not about owning multiple properties. The plan is to make a three bedroom out of it.
Ignored comment.
Unhide
Response by ab_11218
over 12 years ago
Posts: 2017
Member since: May 2009
if you are not showing that you have enough money in the bank today to pay cash. the windfall will be scrutinized and questioned.
Ignored comment.
Unhide
Response by jms8
over 12 years ago
Posts: 110
Member since: Apr 2011
so you are good enough for a bank but not your current coop. i would suggest putting the board package together highlightling that you are a lknown entity. they know how you are as a tenant, love of the building etc. see ig you can get some loans from family to boost current cash reserves or offer coop a year or so maintenance to be held in escrow. you are still in a better position than someone off the street. don't try to pull thevalternative financing wool over the coop's eyes. you are already in.perhaps an honest coversation w the board would help
Ignored comment.
Unhide
Response by NYCMatt
over 12 years ago
Posts: 7523
Member since: May 2009
The board may not even approve of your idea to combine apartments.
Many don't.
Ignored comment.
Unhide
Response by flarf
over 12 years ago
Posts: 515
Member since: Jan 2011
What if you borrow money from these "alternative sources" but then can't get a bank to issue a mortgage after you close? If you need to borrow the money, it makes far more sense to just line the mortgage up now instead of trying to hide it.
If you're on friendly terms with a board member, a conversation there wouldn't hurt either.
Ignored comment.
Unhide
Response by tbontb
over 12 years ago
Posts: 56
Member since: Dec 2008
Thanks for all your inputs... like I thought... too much hassle for little benefit.
Ignored comment.
Unhide
Response by fieldschester
over 12 years ago
Posts: 3525
Member since: Jul 2013
You should ask aboutready. When she bought her condo, she didn't have enough cash for the regular downpayment so she had to seek alternative financing sources. Even then she had some odd experiences like them thinking that her husband* owned his entire law firm.
*aboutready's husband including his degree from Columbia and his future income stream** is owned 50% by aboutready
**aboutready's husband's income includes his potential income stream assuming he works until the government-mandated retirement age. If he stops working beforehand, aboutready still owns what he should have earned during this period.
Ignored comment.
Unhide
Response by alanhart
over 12 years ago
Posts: 12397
Member since: Feb 2007
And *** ?
Ignored comment.
Unhide
Response by fieldschester
over 12 years ago
Posts: 3525
Member since: Jul 2013
>And *** ?
I agree alanhart, I agree, there's always more. Aboutready, what is next?
Ignored comment.
Unhide
Response by aboutready
over 12 years ago
Posts: 16354
Member since: Oct 2007
No, I make no claim on his useless masters from Columbia. He obtained that before I met him.
You call Citibank alternative financing? Really?
Ignored comment.
Unhide
Response by fieldschester
over 12 years ago
Posts: 3525
Member since: Jul 2013
Hubby has 3 degrees, undergrad, masters from C0lumbia and JD from C0lumbia?
Ignored comment.
Unhide
Response by aboutready
over 12 years ago
Posts: 16354
Member since: Oct 2007
He has three degrees.
Ignored comment.
Unhide
Response by fieldschester
over 12 years ago
Posts: 3525
Member since: Jul 2013
3 degrees, managing partner, you own 50%. Sweet.
Ignored comment.
Unhide
Response by MortgageMan787
over 12 years ago
Posts: 96
Member since: May 2008
tbontb,
Somewhat common yet often not discussed is an unrecognized loan. LTV after completion will really come into play. Or an unsecured loan depending on your balance sheet.
Feel free to reach out. I would be happy to discuss.
Mitchell
Mitchell Cohen
First Republic Bank
212-259-4068
mcohen@firstrepublic.com
NMLS# 20577
Next door meaning side by side, or across the hall way?
And I think all new money sources will be scrutinized. Even is that alternative financing were from your parents.
Yes, next door as side by side, so it's not about owning multiple properties. The plan is to make a three bedroom out of it.
if you are not showing that you have enough money in the bank today to pay cash. the windfall will be scrutinized and questioned.
so you are good enough for a bank but not your current coop. i would suggest putting the board package together highlightling that you are a lknown entity. they know how you are as a tenant, love of the building etc. see ig you can get some loans from family to boost current cash reserves or offer coop a year or so maintenance to be held in escrow. you are still in a better position than someone off the street. don't try to pull thevalternative financing wool over the coop's eyes. you are already in.perhaps an honest coversation w the board would help
The board may not even approve of your idea to combine apartments.
Many don't.
What if you borrow money from these "alternative sources" but then can't get a bank to issue a mortgage after you close? If you need to borrow the money, it makes far more sense to just line the mortgage up now instead of trying to hide it.
If you're on friendly terms with a board member, a conversation there wouldn't hurt either.
Thanks for all your inputs... like I thought... too much hassle for little benefit.
You should ask aboutready. When she bought her condo, she didn't have enough cash for the regular downpayment so she had to seek alternative financing sources. Even then she had some odd experiences like them thinking that her husband* owned his entire law firm.
*aboutready's husband including his degree from Columbia and his future income stream** is owned 50% by aboutready
**aboutready's husband's income includes his potential income stream assuming he works until the government-mandated retirement age. If he stops working beforehand, aboutready still owns what he should have earned during this period.
And *** ?
>And *** ?
I agree alanhart, I agree, there's always more. Aboutready, what is next?
No, I make no claim on his useless masters from Columbia. He obtained that before I met him.
You call Citibank alternative financing? Really?
Hubby has 3 degrees, undergrad, masters from C0lumbia and JD from C0lumbia?
He has three degrees.
3 degrees, managing partner, you own 50%. Sweet.
tbontb,
Somewhat common yet often not discussed is an unrecognized loan. LTV after completion will really come into play. Or an unsecured loan depending on your balance sheet.
Feel free to reach out. I would be happy to discuss.
Mitchell
Mitchell Cohen
First Republic Bank
212-259-4068
mcohen@firstrepublic.com
NMLS# 20577