[WSBAPT] Getting loan in purchasing partial interest in property

Fri Mar 18 14:17:47 PDT 2016

I would try a regional bank or credit union. Not the big banks.
Heritage Bank, Skagit Bank, SaviBank, BECU, or broker that works with life insurance companies to originate loans for their investment portfolios. 
Here is a broker that could handle a non-bank loan, but still provide a competitive interest rate. He reps for a number of life insurance companies. I have a client working a very competitive refi and these folks should understand how to do the deal without requiring your client to be a borrower, as long as they pledge the collateral.
Richard Brooke, Executive Vice President
Q10 | National Mortgage Co.
15862 SW 72nd Avenue, Suite 200
Portland, OR 97224-8054
Phone: (503) 270-5300
Fax: (503) 270-5333
Visit our web-site at:
 <http://www.Q10capital.com> http://www.Q10capital.com

Also consider putting the property into an LLC, and negotiate to limit the guarantees to those of your non-client. As commercial property, typical wisdom suggests it go in an LLC anyway.

I have also worked with private money loan brokers on these deals, but those require higher interest rates (8-9.5%) and LTVs of 65% or better.

Michael A. Winslow
1204 Cleveland Ave.
Mount Vernon, WA 98273
Ph. 360-336-3321
Em. Mike at winslegal.com

This message is from an attorney, so it’s confidential. If you are not the intended recipient, it’s too late to stop reading this message, but you may not use it for any improper purpose. Huge Disclaimer available upon request.

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Jennifer Sohn
Sent: Friday, March 18, 2016 1:21 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Getting loan in purchasing partial interest in property

Do you know any banks that have done that? The banks that we have contacted require all owners of the property to sign the promissory note.

Thanks,

Jennifer

On Fri, Mar 18, 2016 at 8:15 AM, Mike Winslow <mike at winslegal.com> wrote:
There should be a bank that will do the loan only to the son, as borrower, but will require pledge of the entire property as collateral. Son will be on prom note, but client will not. That way the client will remain “debt free”, as their name will not be on the promissory note. But their interest (the 1/3 TIC) will be at risk under the Deed of Trust. Not an uncommon approach. 

The idea of a sale by client to son, noted in your second post just creates additional and unnecessary excise tax and income tax reporting. Overly complicates things and does nothing more than the above approach.

Michael A. Winslow
1204 Cleveland Ave.
Mount Vernon, WA 98273
Ph. 360-336-3321
Em. Mike at winslegal.com

This message is from an attorney, so it’s confidential. If you are not the intended recipient, it’s too late to stop reading this message, but you may not use it for any improper purpose. Huge Disclaimer available upon request.

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Jennifer Sohn
Sent: Thursday, March 17, 2016 9:34 PM
To: WSBA Probate & Trust Listserv
Subject: [WSBAPT] Getting loan in purchasing partial interest in property

Hello, my client owns a commercial property with 2 others. There is no mortgage on the property. 2 of the owners will be bought out by my client's son, and the son needs to get a loan to purchase this partial interest. The desire is for my client to continue to be debt-free on her 1/3 interest, and for her son to be the sole person responsible for his loan.

The problem is, there is no bank who will make a loan to the son with only 2/3 of the property as collateral. 

Has anyone dealt with this situation? How does a tenant-in-common normally get a loan (does he always need the other tenants-in-common to put up their interest in the property as collateral when he needs a loan?)

Thanks!

-- 
Best regards,

Jennifer Y. Sohn
Attorney at Law
(Licensed in CA and WA)
Sohn Law PLLC
10900 NE 4th Street, Suite 1850
Bellevue, WA 98004
Tel: 206.617.7874 / 425.633.2678
Fax: 425.732.9748 
Email:  <mailto:jennifer at sohn-law.com> jennifer at sohn-law.com
 <http://www.sohn-law.com/> http://www.sohn-law.com

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-- 
Best regards,

Jennifer Y. Sohn
Attorney at Law
(Licensed in CA and WA)
Sohn Law PLLC
10900 NE 4th Street, Suite 1850
Bellevue, WA 98004
Tel: 206.617.7874 / 425.633.2678
Fax: 425.732.9748 
Email:  <mailto:jennifer at sohn-law.com> jennifer at sohn-law.com
 <http://www.sohn-law.com/> http://www.sohn-law.com

Confidential. This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. This information is intended only for the use of the individual or entity to whom this electronic mail transmission was sent as indicated above. If you are not the intended recipient, any disclosure, copying, distribution, or action taken in reliance on the contents of the information contained in this transmission is strictly prohibited. If you have received this transmission in error, please delete the message. Thank you.

Circular 230 Disclaimer. Any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and may not be used, for the purpose of (i) avoiding penalties under the internal revenue code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
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