Where readers ask and we (the community) try to answer:
Hi!
My husband and I are considering purchasing a TIC unit in the Marina. The owners currently have fractional loans through the Bank of Marin. If we did purchase, would we be locked in to their loan rate/term or could we negotiate? Could we work with lenders other than Bank of Marin? We have excellent credit and could put down 50%+ so we’re
hoping we could get a good rate.Many thanks for any comments!
Our follow up email:
My first question, if you can put 50% down, why not just look for a condo? How many units in the building? Which real estate agent are you working with? The final, are you okay with me posting your question to the site to get multiple answers?
Thanks for reading theFrontSteps and thanks so much for you email.
I’m not a fan of TICs, but I’m willing to hear you out. ;-)
The reply:
Thanks! Yes, fine to post it if the focus of the answers will be on
financing and not whether or not to buy a TIC – we already know the
pros/cons.We are currently in a condo and are considering condos as well but this unit’s price is much lower than comparable condos (we’ve been looking casually in the Marina for over a year now) the location is perfect (on bedrock, quiet part of the Marina). We’ve researched TICs and are willing to take the risk if we can get a good financing package. So our question isn’t whether or not to buy a TIC, it’s whether or not we have to work with the current lender (Bank of Marin) and also what typical financing for TICs looks like (the current owners have a fixed rate for 10 years and then a balloon payment).
Thanks!
You’re welcome. Anyone care to elaborate?
Can’t offer any input on financing but if this buyer is going to be buying at “Francisco Palms”, where I know Bank of Marin made loand and where there is a TIC available, my time living there revealed that this was not a quiet part of the Marina (being very close to Galileo High School) and a very noisy environment due to a shared courtyard.
If not, please disregard.
First, is the current fractional assumable? (my hunch is that it’s not). If that’s the case, B of marin may have motivation to offer you financing, so the property stays under one bank.
But the simplest thing to do is to ask them directly. Either through a good mortgage broker or call the bank directly (they won’t bite :)
The main fractional lenders are
Bank of Marin
Sterling Bank
Circle Bank
There are a few others that pop up here and there but their names elude me at the moment.
Just talked to Sterling Bank yesterday. That are still offering TIC fractionals, although I have read otherwise on these sites.
I live in Francisco Palms, Im quite a complainer- but I dont notice the noise, I think if you lived on the front road then it can be noisy, but people dont hang out in the garden so i find it to be quiet!