ASSIGNMENT:

This was a uniquely structured transaction.   The property was held in a Trust and the Aunt & Uncle who were the members of the Trust were allowing their nephew to buy them out but in the form of a loan that was structured more like a cash out refinance. By structuring the transaction in this manner, it didn't require the buyer to come up with all of the money upfront like in a typical purchase transaction.

CHALLENGE:

Because of the buy out agreement the taxes increased and so did the insurance. This affected the NOI and the qualifying loan amount. Something that the buyer had not thought about. Also, there was a need for the buyer and seller to work with escrow and have notes drafted against other properties the buyer owned to ensure the seller of his equitable stake.

SOLUTION:

We structured a loan using a low doc program and with a portfolio lender that was familiar with partner buyouts that were structured like a refinance. The transaction took longer than it had to but was no fault of ours.  Buyer had a lot of outside deals he had going on in order to close this transaction.