BUT NEED TO KNOW HOW TO GO ABOUT GETTING SUPPORTING DOCUMENTS, FROM BUILDERS, ASSISTED LIVING ADVISORS AND MARKETING CO, AND INSPECTORS.
i found the courage, the property, the lender, but now i am asked to provide supporting letters for filling the property.
details:
1-downtown high rise area (emerging growth), mfgr plant approved for 135 condo’s.
2-comps and appraisal show$349 med range selling in area all year and now.
3-Asking price $17M, est repair $10M, AVR $42M. lender will do $29M.
lenders are interested in assisted living residential and this is the direction they are lending and i want to go. however, i have been requested to show letters of interest and team input.
QUESTION: WHAT IS THE BEST AND QUICKEST WAY TO ACCOMPLISH THIS FOR A JAN 30TH CLOSING?
ALL RECOMMENDATIONS RESPECTED
Pretty confusing question and not enough detail. January 30th? For a deal that size? What experience do you have? Are there partners involved? 29 million is a pretty big loan. It sounds like you have no idea what you’re doing…
No offense. You sound like you’re running around trying to make a deal happen that most likely won’t.
thank you, you are partly correct…i’m don’t know exactly what i am doing. however, i have 20 years buying experience (not RE) but high dollar commodities for govt & large company’s.
since Sep 07 i decided to strick out and do what i always wanted to do. been to the bootcamps and mentors that i can’t get a hold of due to holiday vacation schedules.
with that said a deal is a deal that fell in my lap thru a private source and i have the main players in place, deal, lender, self, attorney, and advisors (when they are back). given the situation that letters and reports are needed quickly is it realistic that i can get this in a few weeks time from a senior living management and consulting service company specialiszing in housing, acquisition, operation, development, and financial investment in senior housing? responses respected, recommendations needed!!!
Don’t know if it will help, but there are appraisal companies that specialize in senior living facilities. I did a google search and found one such company -
http://www.cbiz.com/page.asp?pid=3325
Here’s another for a senior living investment brokerage -
http://www.seniorlivingbrokerage.com/
I don’t have any personal experience with what you’re wanting to do. Some of these types of companies might be willing to give you some advice or contacts. I guess I’m saying it might be faster to look elsewhere then to rely on this forum.
thanks for help will check these out!
I’m guessing the seller/realtor wants a Jan 30 closing. The bank will not move that quick unless…you, worth millions, your bank account bulging, flowing and perhaps long term relationship with bank( succesful relationship).
Tie the property up with a contract and take your time on due diligence. If it is really a deal , the money will find you.
All kinds of processes to complete on this type of project and none happening quickly. City, county,state approvals. Partnerships, more approvals,engineering, permits, legal commitments, lawyer reviews.on and on. Could be a year, mst likely more in just the planning/developement stage, and lots of actual cash. Tie it up for a year or more if possiblee, then get to work on partners, use their cash… Shouldn’t be a problem if it reaks of money to be made.
Darin
You better do some serious due diligence if you plan on building. City planners, fire marshalls, code enforcement, city engineers, etc…all these people will have to sign off allowing a project of this size and trust me when I say they’re not going to move at your schedule. I would raise some serious questions about the lender your working with also. Apparently you don’t have any of your paperwork together but some bank is just waiting to lend you $27 million. Seems a bit speculative to me. Prepare to have some big time expenses with regards to soft costs also. As previously stated, for the planning you’re going to need blueprints, engineering reports, etc. just to get city approval. I recently spent about $25,000 on just these things alone.
Your mentors you speak of probably taught you the importance of tying up a property, use this advice for this project. Tying it up for a year, as previously stated, might be tough though. But I suppose with a large enough deposit it can be done.
GOD WNZ is right when he says the money will find you. In short if you have a good deal the money will be there. If you’re having trouble finding money step back and look at your deal, chances are that is probably why you can’t get the money you need.
Sounds like a real challenge to get this done by Jan. 30, I wish you luck.
If you rec’d a LOI (letter of intent), I going to assume that it was drafted by a broker and not the lender directly (LOIs are not issued until the bank does their due diligence).
The majority of activities are commercial in nature and I can say with absolute certainity that you won’t be funding in 24 days (it will take anywhere between 45-60 days to fund this type of deal if not longer).
Regards,
Scott Miller