Expert: Terrence Cullen - 9/22/2008

Question
The building is on the market for 1,7 m with a six month balloon, The bank is owed $338.000 at 7 1/2 fixed 30 yr. It is an incomed office building, with city goverment leasing the down stairs at $7,850 per month with until Aug 2011. There is 3000 sg feet on the top floor for lease at 1.25 per square feet

In addition their is another portion of the building being lease at $525.00 per month for another three years.

The building does not have an MAI appraisal on it but has been appraised by Cornish and Carey.

The owner is willing to owner finance the sale of the building to me and in addition appoint me as agent for the sale.

My question is if I find a motivated buyer willing to take a motivated note buyer willing to take a discount say 78/82 cents can I finance this property?

Thank you.
B. Kim Thomas
bkimthomas@hotmail.com

Answer
Kim,

 I need to clarify your question a bit. Can I look at the appraisal, so I can find out the value assumptions and the market. Is the bank loan assumable?
 
 Depending on the location, price, financials, you should be able to find an owner user willing to take over the bank note get a second from the owner and then do a sales leaseback once the market comes back paying off the owner.
  
 Let me know if you have any questions or any other info you want to share and we can discuss the different options. Good Luck TC