Any Real Estate or Mortgage Brokers around?

serryjw

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Mon Dec-13-04 11:10 PM
Original message

Any Real Estate or Mortgage Brokers around?

There is a house for sale in LA for $27 MILLION....Just curious, how does one finance that amount? What down payment is required? What is the largest mortgage a bank will finance?

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unblock

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Mon Dec-13-04 11:14 PM
Response to Original message

1. banks finance skyscrapers. sky's the limit on mortgages

it all depends on your ability to repay and preserve the value of the collateral.

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serryjw

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Mon Dec-13-04 11:16 PM
Response to Reply #1

2. Not the same thing.....

one is commerical and has constant revenue coming in to off-set the mortgage

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unblock

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Mon Dec-13-04 11:33 PM
Response to Reply #2

4. not as different as you might think

if you want a $20MM mortgage for a mansion, the bank evaluates the likelihood of the collateral remaining above $20MM in a foreclosure and also on your ability to repay (which includes making monthly payments, obviously).

your ability to repay will be judged by the bank based on your earning ability and assets, especially income-producing assets.

the house itself is obviously an asset, and if there is a rental/vacation market for such homes, then it can be income producing as well.

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serryjw

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Mon Dec-13-04 11:41 PM
Response to Reply #4

5. Still not the same....

commercial are all corporations and play by different rules. Banks don't worry about an actor not making an A movie and suddenly being unemployed for 2 years

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unblock

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Mon Dec-13-04 11:45 PM
Response to Reply #5

7. a bank wouldn't finance an actor

if 2 years of unemployment would lead to a default.

the actor has to have wealth set aside and other income streams (as all "a" actors do).

high net worth individuals are treated more like corporations than ordinary net worth individuals.

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serryjw

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Mon Dec-13-04 11:47 PM
Response to Reply #7

8. When I get the answer to my original question

I let you know.

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trotsky

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Mon Dec-13-04 11:23 PM
Response to Original message

3. As long as you have a proven income source

(and for that amount it had better be PROVEN)

...I think they'll finance just about anything. I'm sure the types who could afford that kind of house have their tax accountant structure a mortgage for them that gives them the maximum tax benefit.

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mcscajun

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Mon Dec-13-04 11:42 PM
Response to Original message

6. And the More money you have...the higher Loan-to-Value the bank will lend

Loan-to-Value % is lowest for us working stiffs...gee, what a surprise.

If you play power forward for an NBA team and signed a multi-million dollar contract...the sky is pretty much the limit.

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mrbill

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Tue Dec-14-04 06:01 AM
Response to Original message

9. lots of buyers of these type of properties pay cash.........

read that in the real estate section of the newspaper.

the people who buy these properties have more cash on hand than anyone can imagine.

screw the mortgage interest deduction.

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