Three times a charm! We had financed this building previously twice for the seller and when he placed it on the market for sale his listing agent reached out to us to refer to us a buyer for the property. Very sharp young man with a background in construction design. He had no prior multifamily experience but have a good feeling on this property for him. Someone with his area of specialization is just what this building needs.
The seller had a previous management firm that just did a terrible job and the new management firm who picked up early this year had to get things in order, but it was kind of like being asked to prepare a 6 egg omelet with three eggs. However got to hand it to them in a little less than three months time they had things organized. Prior years books & records were irretrievable from prior firm and the property just had a lot of defered maintenance. The appraiser used was overly abundant with caution and ridicule and didn't help much with comments he made in his appraisal report that then lead to a required holdback.
It turned out that the original lender still remained to be the best loan option for this property and despite the appraisers atrocious estimates of cost to cure, we were able to negotiate that down to less than 1/3 of the appraisers forecasted costs. The buyer had already had plans of renovating this project so he was okay with a small holdback. We closed on time and very happy to have met this new client. Got a good feeling that he will be building up his portfolio in the future. Off to the next deal!