ASSIGNMENT:

One of our past clients contacted us with interest in purchase this property. Once we saw the address, we were very familiar with the property since we had financed it a few years ago for another seller.  The seller just one day decided that he didn't want to continue with multifamily, and he had a property that was 99% vacant due to him not completing renovations and he had removed drywall in all units leaving studs all exposed, It was like a broken construction project. We have worked with the agents on both sides of the transaction on many deals over the years and they and the seller who was also a past client, knew that they could count on us to get this transaction financed for the buyer.

CHALLENGE:

The biggest challenge obviously was that the property only had one occupant, and the rest of the units were vacant, and when a lender or appraiser entered the units it looked a little overwhelming seeing all the studs and exposed insulation and pipes and electrical.

SOLUTION:

We provided the lender with a projection of the construction costs and outlined clearly the borrower's management plan which included the renovations, and a forecast of the stabilization period and the take out plan.  We ended up structuring a short-term bridge loan for the borrower at 75% LTV with a great Private Lender.  Everything worked out, now we just stay tuned for the take-out loan :)