Dennis Greenstein Quoted in The New York Times
“A Condo Building That’s Mostly Rented”

Dennis Greenstein was quoted in the real estate Q&A column of The New York Times on October 11, 2009. The letter writer wanted to know if it was possible for a potential buyer to obtain financing in a condo building that has a higher percentage of rental units. The letter writer’s building has seven units: six residential and one commercial. The commercial unit and three residential units are leased by the owners to tenants, leaving only three residential units occupied by owners.

Dennis responded that it is likely to be difficult to obtain financing for the letter writer’s building. He remarked, “I would suggest contacting a residential mortgage broker who will be more familiar with the banks that will consider issuing loans in buildings that have a high percentage of rentals.” He further noted that even if financing can be obtained, it may have less favorable terms than in buildings with fewer rentals. Dennis also suggested that a seller could lend the buyer the money and hold the mortgage.