178100 Resource 78777 78860 78860 1186489942447 1186490947994 Controlled Commercial Real Estate Loans for Fractured Condo's Fractured Condo's Are Everywhere in Florida <p>A <strong><em>fractured condo</em></strong> is a residential condominium complex where some of the units were&nbsp;sold as condo's, but the bulk of the units remain unsold and are rented out as apartments.&nbsp; Typically the rental units are put in a rental pool that is run by a large management company.</p><p>Fractured condo's have a lot of problems because renters don't treat the property with the same level of care as the owners.&nbsp; In addition, renters are often younger, louder and more raucous.</p><p>In most cases, because of the by-laws of the&nbsp;development,&nbsp;the management of the homeowners association remains in the control of the original developer, despite the fact that he might own less than 50% of the units.&nbsp; If the developer declares that his unsold units are no longer for sale, he may lose control of the homeowners association.&nbsp; On the other hand,&nbsp;if the developer keeps his units for sale, a REIT cannot&nbsp;finance the unsold (fractured) condo units because a REIT may not legally finance any property that is for sale.</p><p>One of the largest problems for fractured condo's is that most&nbsp;developers, in order to sell their&nbsp;condo's, often set their initial homeowners association dues artificially low.&nbsp; Therefore the homeowners association starts out underfunded.</p><p>A few bridge loan lenders will finance fractured condo's at LIBOR plus 3.5% to 4.0%.&nbsp; They will underwrite the deal to a breakeven cash flow, which unfortunately will only be about 60% of the cost of the condo's.&nbsp; Someone will have to take a very painful haircut.</p><p>You can apply to scores of lenders for a commercial real estate loan on a fractured condo's by applying for a first mortgage bridge loan from <a href="http://www.c-loans.com/onlineapp">C-Loans.com</a> on a residential condo project.</p><p /> 9 application/xml false commercial financing commercial property loan commercial property loans commercial real estate financing commercial real estate loan commercial real estate loans fractured condo fractured condo financing fractured condo loan fractured condo loans fractured condominium loan C-Loans Commercial Mortgage Lender Databank Apply to Scores of Lenders for Fractured Condo's http://www.c-loans.com/onlineapp Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 5.1; .NET CLR 1.1.4322) 127.0.0.1 127.0.0.1 GBlackburne false true false false true 198508 false false true false false false true 206901 Resource 198508 173239 78860 1213661490802 1216079063294 Controlled fractured condo finance in florida is it possible to finance a fractured condominum project in Florida? 10 application/xml false Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 5.1) 127.0.0.1 127.0.0.1 76.109.122.179 false true false false true 78777 blog blogsite/CLoans/web