My New Blog

TIC INFORMATION-ANDY SIRKIN_3_8_2007.pdf

Because of the bay area home pricing that is very expensive compared to other areas in the nation, tenants in common vesting is the least expensive properties for first time home buyers. Having had over 6 years of experience in owning, selling and financing these types of buildings will give you an advantage over other brokers. As with all properties, there are certain positive and other factors that one should consider when looking into buying a tic.

1)Financing - there are two ways of getting a loan: The most common loan is called a group loan. Everyone will share one loan together but are going to responsible for their share individually. The requirements for this loan are basically grouped together so that everyone's assets,income,debt and credit scores are considered as a group. The key to this type of program is that one or more owners can sell at any time without having to refinance the entire loan. We have a great product that is called a partial assumable loan. Just a flat fee to be paid to the bank with a qualified borrower to take over your portion of the loan. These come in fixed terms of 3,5,7 & 10years.

The second type of financing is called Fractionalized or Individual Loans. Everyone who buys their unit is getting their own loan and deed of trust. Still relatively new, they are priced at least 1% more in rate and fees,but they have the distinction of being your own loan without sharing. Qualifications are more stringent than the group loans and are shorter in terms with prepayment penalty's. In another words, if you decide to sell or refinance early, the bank will charge you for that process.

In both instances, the tic buyers must decide on either one or the other type of loan.

Pre-Qualification is very important for the Tic purchase and within one day of speaking to you about your financial and credit, I can recommend the type of loan and purchasing power your unique situation falls in.

Regards and have a great day.

Bob Gerson

SF REALTOR Advantage Online .htm

This is a great article including financing for a Commercial type sale of 5 plus units that require a buyers agent or selling agent to be wary of the San Francisco and Dept of Real Estate's interaction for getting into this type of property.

Triton Funding has Fractionalized loans that can meet or beat the competition. Enjoy this article.

Regards

Bob Gerson

Loan Officer - Triton Funding MY PICTURE.jpg