Expert: Brian Bocchieri - 10/1/2007

Question
Me an 4 partners are in the process of buying 3 multi unit properties with a total of 300+ units. One of the apartments is 50% occupied(value added) the other 2 are performing. Can we sell one of the performing properties to provide the down payment for the other two? Also assumable loans on two. Thanks JS

Answer
Jay that's a great question,
It depends on how the assumable financing is structured.  If the loan is on all three properties with no separation clause then the properties cannot be sold separately.

If the properties carry individual loans then the answer is yes they can be sold separately.

Are the properties adjacent to one another? In the same county / town? If they
are they may be covered with one loan with no separation clause.  

If the properties are considered one property you may need to subdivide the properties in order to sell the one unit.  Not all towns will allow the apartments to be to be subdivided.  This can also be an expensive proposition.

I order to answer this in more detail additional information will be needed.

You can e-mail me at brian-bocchieri@hotmail.com and I will be happy to help you and quote your deal for you.
Wishing you all the best
Brian Bocchieri