How to find a reputable NJ mortgage broker to deal with this?
We need to find financing for an unusual situation. In order to avoid a
partition sale, we want to buy out a 1/3 owner, using both the 1/3 being
bought and the 1/3 we have as collateral, but still leaving us with only a
2/3 ownership. The property is commercial, in New Jersey, and is currently
rented. The purchase price is approximately 20% less than 1/3 the
appraised price, so it's a good deal for us - almost certainly better than
the results of a forced partition sale. The propery is an inheritance, and
neither of us actually live in NJ.
My initial contact with Fleet indicated that they don't do investment
mortgages. So now I'm wondering where to go - how to find a reputable
NJ mortgage broker to deal with this?
Look at this from the bank's perspective. They want colateral that
can easily be turned into cash if you default on the loan and the
ability to make the monthly payments.
I realize you are being intentionally vague, but you don't present any
facts that the business could be readily sold for cash. Worse, they
don't even have clear title as the other 1/3 of the business belongs
to someone else. Foreclosing on the business could be a real mess if
the other owner overvalues his/her 1/3 and threatens to sue if not
properly compensated.
You haven't mentioned any great cash flow that will easily repay the
loan. Many businesses are just scraping by. Heck, the bank would
give me money to buy General Motors tomorrow if I could convince them
that I could make the loan payments. That is all they care about.
Can you get the 3rd owner to co-sign the loan? Bribery usually helps.
Or threaten a scorched earth (partition sale) strategy if he won't.
In any event get a credible story together before contacting a lender.
The fact that you have a money problem doesn't mean anything to them.