George Smith Partners identified a regional capital provider lending on transactions up to $16,500,000 on a recourse basis. With the ability to advance up to 80% of purchase price on ground-up construction and luxury SFR’s, Condos and Multifamily, pricing is 1.25-1.50 over Prime for a 24 month term. Other offerings include earn-outs and value-adds for commercial loans, SRO’s, and TIC’s, as well as cookie-cutter industrial, office and industrial.
Tenancy-in-Common (TIC) owners of a multi-unit property have exclusive usage rights to a particular area of the property. They own percentages in an undivided property, rather than particular units. The deeds reflect only their ownership percentages. Each owner has the right to use a particular dwelling, which is reflected in a written contract signed by all co-owners. This must not be confused with condominium ownership.
The ability to receive “Fractional Loans,” which enables co-owners to obtain individual loans, significantly reduces the risk of co-ownership. Fractional Loans enable each co-owner to have an individual loan. The loan is secured by the co-owners share of percentage in the property so if one co-owner should default it does not impact the other co-owners. This lender finances the acquisition and development/conversion of multifamily properties into TICs, and is one of the only lenders in California offering Fractional Loans to individual TIC owners.