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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Plan B... Posted by Rick, the Probate Guy on February 20, 2010 at 11:29 AM In Reply to: No permits for house. posted by M Ca on February 19, 2010 at 8:49 PM Seems to me that you have a chance of becoming the "stuckee" if the permit situation isn't resolved anytime soon. Best case, your local agency cooperates with you and gives you the final approval and certificate of occupancy that makes this property qualify for conventional/FHA financing. But what if...? Therefore, I'd encourage you to start thinking/planning now about your exit plan, unless you intend to keep this property as a rental. There are plenty of people who would prefer to live in semi-isolated areas and don't care for government interference of any kind. That's your target market. Contrary to popular misconceptions, not all of these folks are looking for proximity to the CVS drug distribution center, hydroponic vendors or Harley dealership. Have you considered seller financing as your exit plan (B)? If so, I suggest that you bone-up on how to structure such as transaction to your advantage. An example would be to consider breaking up your carry-back portion into two loans, with the first TD no more than 50% LTV. This way, you have the flexibility to sell the first and incure minimal discounts on the note market. Also, yyou can horse-trade the junior portion of your carryback by using it as consideration in another acquisition. Also, note that Peter Fortunato is presenting his One Step Beyond seminar in Santa Ana, Ca in a few weeks. He's a master at structuring these types of deals. Hope this helps! Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : Seems to me that you have a chance of becoming the "stuckee" if the permit situation isn't resolved anytime soon. Best case, your local agency cooperates with you and gives you the final approval and certificate of occupancy that makes this property qualify for conventional/FHA financing. But what if...? : Therefore, I'd encourage you to start thinking/planning now about your exit plan, unless you intend to keep this property as a rental. : There are plenty of people who would prefer to live in semi-isolated areas and don't care for government interference of any kind. That's your target market. Contrary to popular misconceptions, not all of these folks are looking for proximity to the CVS drug distribution center, hydroponic vendors or Harley dealership. : Have you considered seller financing as your exit plan (B)? If so, I suggest that you bone-up on how to structure such as transaction to your advantage. : An example would be to consider breaking up your carry-back portion into two loans, with the first TD no more than 50% LTV. This way, you have the flexibility to sell the first and incure minimal discounts on the note market. Also, yyou can horse-trade the junior portion of your carryback by using it as consideration in another acquisition. : Also, note that Peter Fortunato is presenting his One Step Beyond seminar in Santa Ana, Ca in a few weeks. He's a master at structuring these types of deals. : Hope this helps! [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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