What’s a hard-money lender charge these days? I would guess about 18% – just another example of how people with cash have a huge advantage
If you are really serious you might figure out how to bring the HOA current and then purchase the unit(s) with conventional financing – but that means putting $15K of your money into a very precarious position – not something I would do myself – you’d essentially be loaning or gifting the HOA $15K which would, IMO, be a material fact that would have to be disclosed to a lender – this would be a red flag to an underwriter and they might still stay away from the deal
~
I have mentioned this issue as one of the many bad aspects of condos – here we have a situation where any owner in this property is unable to sell their unit unless a cash buyer comes along – and cash buyers who understand the power of their position don’t pay full price
There was a condo property in El Cajon where the HOA had stopped paying the insurance on the property – another situation where only a cash buyer could close escrow
