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Discussion Starter #1
Hello L4P'ers

Had my loft for over a year now and buying garage parking spot in my building. Has any of you financed a parking space separate from your apartment? I'm seeing some personal loans available with 10-12% interest. I've looked into refinancing my condo but closing fees make personal loan look better.

Parking space is $35k. I'm willing to finance half of it. What's the best option here?
 

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Unfortunately, you'll probably need some kind of unsecured loan if you can't finance it through equity you have in your apartment. The parking space is pretty much worthless to anybody except those who live in your building which gives it such a limited secondary value that it throws it into that "unsecured" loan product. That's the way the banks will look at it.
 

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Securitizing the loan against your property will allow the interest to be tax deductible whereas an unsecured loan is not. Ask your accountant if the use of the loan to purchase the space, although not secured by the space, will allow you to write it off.
 

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$35K for a parking spot!?
That's nothing, friend of mine just bought one (Chicago) paid for it like 62k .........crazy i know
 

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Discussion Starter #9
Securitizing the loan against your property will allow the interest to be tax deductible whereas an unsecured loan is not. Ask your accountant if the use of the loan to purchase the space, although not secured by the space, will allow you to write it off.
Interesting. I'll give my tax guy a call tomorrow.

Most of the garage parking spots across Boston average 50-65k. Mine is actually a great deal.

Does anyone have experience with buying a parking space? I was just told it needs to handled just like a property with a closing, which means around $1100. Is that a norm?
 

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Discussion Starter #10
I need some advice. So the current owner of the spot has a lawyer to set up the closing. The guy is straightforward, he owns apartment in my building and he's going to rent it out afterwards. He also works for the same company as I do, so I don't really expect anything bad to happen.

However I've heard of stories of people buying parking spots, but because of the wrong paperwork, they would not actually own that spot and lawfully they were out of $30-70 thousand dollars.

Should I still hire a lawyer or a lawyer on his side is good enough?
 

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You're probably done by now, but at the bare minimum, enlist the services of a title company or read the title report - the seller should provide one. An attorney is always advisable, especially in Boston. I used to do commercial property lending there. Good luck with the transaction!!!
 
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Discussion Starter #13
You're probably done by now, but at the bare minimum, enlist the services of a title company or read the title report - the seller should provide one. An attorney is always advisable, especially in Boston. I used to do commercial property lending there. Good luck with the transaction!!!
A guy that does real estate said this parking spot was bought at a foreclosure, which might mean the building investor was selling those spots out on their way out, for which he advised I get a lawyer to make sure it's nice and sound.

Seller has the title and I have the money. Sounds like all we need is someone to prepare paperwork and not sure if it's necessary to have two lawyers.

Mateo - I'll be calling you shortly.
 

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If his lawyer/title company is competent I wouldn't bother with my own attorney. Make sure you're getting a title insurance policy, especially since it's been through foreclosure.
 
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