Huddar, Home Buyer in Berkeley Hills, Berk...

I am looking to buy 1609 Bonita Ave Unit#5. This is a TIC with restrictions on condo conversion & rentals . Are there any specialist appraisers?

Asked by Huddar, Berkeley Hills, Berkeley, CA Sun Sep 4, 2011

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4
Hi
Are you working with an agent? If not you will be better off if you find a good one. If you are paying cash which may be your only option, you don't need an appraisal. If you are financing there aren't many options. Sterling Bank is a possibility but may only be doing SF now. The value of any piece of real estate I determined in the market. Best bet for you is to talk with your agent. I'm sending this from my phone so please excuse the brevity and the typos.
Good luck
Bill
1 vote Thank Flag Link Sun Sep 4, 2011
Ditto on the importance of working with a local agent to help you with the valuation and negotiation. If you are getting a loan, you've already discovered the number of lenders who do loans on TIC's is more limited. There are two types of loans for TIC's...one where all owners are on the same loan OR the newer type, and very few lenders do these...are the "fractional" loans...where a lender is willing to make individual loans to each owner or set of owners. In this case, the loan is more similar to a condo, but the ownership structure is not. I have good friends who did a TIC purchase on their own, with no representation, and had many surprises after the fact...because they just did not know the questions to ask.

We are all assuming you don't have an agent yet, because if you did, many of these things should have been explained to you. Good luck!
0 votes Thank Flag Link Tue Sep 13, 2011
I agree with Bill that your agent is your best resource here. You might also consult with a real estate attorney to best understand your ownership rights and responsibilities as well as your future ability to sell if you need or want to. TIC units do not sell quickly, so be sure and take your time to understand everything you can about it, and to meet the other owners with whom you will be sharing responsibility for the property. Best of luck.

Mary Canavan, Broker
Thornwall Properties, Inc.
Web Reference: http://marycanavan.com
0 votes Thank Flag Link Sun Sep 4, 2011
Huddar,

If you don't have an agent you should get one who specializes in this type of property because it's complicated. We have used an appraiser who does TICs a lot - was recommended by Sterling Bank - who seems to be good. Drop me a line if you want contact info.

We deal with TICs on an ongoing basis and to the best of my knowledge only Sterling and NCB are doing fractional loans, and I believe they do deals outside of San Francisco.

Whatever you do, based upon your description of the property it should be a LOT cheaper than a comparable condo.

Best Regards,

Lance King/Owner-Managing Broker
lance@fixedrateproperties.com
415.722.5549
DRE# 01384425
0 votes Thank Flag Link Sun Sep 4, 2011
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