ASSIGNMENT:

Two years ago, these investors purchased this property and due to the low rents and the downpayment they were working with at the time we had to place them into a bridge loan. The investors were slow in raising the rents and making improvements so we had to extend the bridge, but now they were ready to refinance out into normal bank financing.

CHALLENGE:

Over the past two years cap rates have been on the rise and therefore it was negatively affecting the property value. While we were in the process there were still two units being renovated and we had to wait for them to be leased up.

SOLUTION:

Fortunately, there were a couple units that qualified for a rent increase which helped in obtaining a larger loan amount. Still the clients were going to have to bring in some funds to close. In the end we were able to help them drop their interest rate by almost half and now they have a stabilized asset.  Soon afterwards one of the borrowers called us to let us know he is working on another purchase and would  like help with financing. :)