What does the note say with regards to prepayment? Often there would be terms that say a prepayment penalty of X is due if more then X percent of the loan balance is paid off prior to some period. What does your note say? I have seen notes that charge a 5% prepayment penalty for 5-10 years on the loan balance if over X% is prepaid (this effectively prevents prepayment without compensation).
Typically I see Rights of First Refusal used when a buyer has to sell a property to perform.
The buyer is usually given a time frame - 24, 48, etc hours - to drop the contingency or release the property if the seller receives an offer that is better/cleaner.
Jim
But if I have the property locked in under a contract, why would I need a right of first refusal in the first place? Unless I back out, am I not legally the only person who is capable of buying it?
Unless they have all dried up, there are lenders who do non-conforming loans. I have a bunch of these secured by properties in my portfolio. My suggestion is to find a good mortgage broker ( not an easy task) and see what he/she can do.
What does the note say with regards to prepayment? Often there would be terms that say a prepayment penalty of X is due if more then X percent of the loan balance is paid off prior to some period. What does your note say? I have seen notes that charge a 5% prepayment penalty for 5-10 years on the loan balance if over X% is prepaid (this effectively prevents prepayment without compensation).
Typically I see Rights of First Refusal used when a buyer has to sell a property to perform.
The buyer is usually given a time frame - 24, 48, etc hours - to drop the contingency or release the property if the seller receives an offer that is better/cleaner.
Jim
The can also be used in TICs to force a sale.
But if I have the property locked in under a contract, why would I need a right of first refusal in the first place? Unless I back out, am I not legally the only person who is capable of buying it?
You presented yourself as an owner wanting to carry a note long term, not the buyer...
Chris
Unless they have all dried up, there are lenders who do non-conforming loans. I have a bunch of these secured by properties in my portfolio. My suggestion is to find a good mortgage broker ( not an easy task) and see what he/she can do.