Hi All,
I am trying to underwrite a deal with has a lot of POH (new homes) and a single family home on the edge of the park. My plan is to sell the POH and have 21st cash me out, and subdivide the single family home and sell it off. I’m wondering how the process works with the bank financing the park, POH and home. When I sell off the homes, the bank will have to release a lien in order to sell them, correct? And from bootcamp I remember that Frank said to make sure to agree on the release amounts beforehand. My question is, where does this money go? Does it go to pay down the loan amount, or can it go into my pocket? The main reason why I ask is that it would be great if I could use it to partially return capital to investors and help boost their IRR. But I’m not sure what common practice is with banks.
Your input is much appreciated.
Thanks,
Aaron