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Ballon Payment due

This topic contains 5 replies, has 0 voices, and was last updated by Avatar of unclejim unclejim 7 years, 7 months ago.

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  • #6891
    Avatar of unclejim
    unclejim
    Participant

    They need 2.2 million to pay the balloon payment on a shopping center earning 10% CAP. Has anyone ever solved this kind of problem? One of the owners “says” they will not accept an equity sharing arrangement.

    Dave I need some feed back with regard to whether HOPES can help these guys. It is a commercial deal of course.

    1) it is a shopping center.
    2) there are three owners.
    3) the bank sold the note to an investment company; probably at a discount (but so what?).
    4) The three owners have to come up with a balloon payoff of 2.2 Million by April 17th or the NEW holder of the note is going to take the property from them.
    5) there exists 1.5 million equity the three owners will lose plus whatever they put into it upfront.

    Can this “privately held commercial note purchased from an institutional lender (a bank)” be challenged?

    #34049

    @unclejim wrote:

    They need 2.2 million to pay the balloon payment on a shopping center earning 10% CAP. Has anyone ever solved this kind of problem? One of the owners “says” they will not accept an equity sharing arrangement.

    So opposed to saving the property and their current equity, they would rather lose it all together??? Sorry, but I don’t get it.

    @unclejim wrote:

    Dave I need some feed back with regard to whether HOPES can help these guys. It is a commercial deal of course.

    NO, because they don’t want help, they want a free ride.

    @unclejim wrote:

    Can this “privately held commercial note purchased from an institutional lender (a bank)” be challenged?

    Not sure you’d get very far with a “challenge” on this one.

    Even if the Owners don’t want to “Equity Share”, that doesn’t mean the Investor/Lenders wouldn’t.

    #34050
    Avatar of unclejim
    unclejim
    Participant

    Scott it seems I have mis-lead you. The owner’s will equity share. They are saying the note holder will not. Sorry for the confusion.

    Th bottom line I was looking for is whether or not the NEW note holders position can be challenged. If it can then the current owners will participate.

    Again – Sorry for the confusion!!

    You seem to be saying that HOPES is not a viable solution – Right? That would mean these owners have already lost the fight unless they can find a 2.2 million dolloar buyer.

    #34051

    @unclejim wrote:

    Again – Sorry for the confusion!!

    No Problem

    @unclejim wrote:

    You seem to be saying that HOPES is not a viable solution – Right? That would mean these owners have already lost the fight unless they can find a 2.2 million dollar buyer.

    You need to remember, this thing we call “HOPES” is nothing more than asking the Bank/Lender to become one of the beneficiaries in return agreeing to certain terms. All HOPES is, is an offer. They can either accept it, or reject it.

    We may from time-to-time, need to “encourage” a Bank/Lender to accept our proposal or face the possibility of losing the asset altogether via a Quiet Title Action. However, to do that, we need evidence. Private Lenders, Community Banks and some Credit Unions typically do not conduct their loan/mortgage business the same way that the BIG Banks and Brokers do.

    The only HOPE I may be able to offer you here is that the original “Pretend Lender” may not have had the legal right to sell off the note, either at full value or at a discount. It is entirely possible that they did so illegally. Other than that, unless the current note holder is willing to be creative… NEXT!

    #34052
    Avatar of unclejim
    unclejim
    Participant

    @Scott_L._Moyes wrote:

    The only HOPE I may be able to offer you here is that the original “Pretend Lender” may not have had the legal right to sell off the note, either at full value or at a discount. It is entirely possible that they did so illegally. Other than that, unless the current note holder is willing to be creative… NEXT!

    That is also my view. But I needed to know your view.

    #34053
    Avatar of peter@amakya
    peter@amakya
    Member

    Let’s see if I can get the private money you need. Call me on 210 523 9990 on Friday.

    #34054
    Avatar of unclejim
    unclejim
    Participant

    @peter@amakya wrote:

    Let’s see if I can get the private money you need. Call me on 210 523 9990 on Friday.

    Will do. If I miss you my number is: 517-896-4275

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