ASSIGNMENT:

This was a purchase transaction for a new client who was buying his first apartment building. We were referred to this investor and after several offers on other properties he finally made the decision to proceed with this transaction.

CHALLENGE:

The seller of the subject property had challenges with his past management company that resulted in him firing them and then evicting multiple unqualified tenants.  While he was working on leasing up the property, he simultaneously had the property listed for sale. The property went under contract with over 50% vacant units and as part of the buyers' offer the units were to be leased out prior to COE, which posed the biggest challenge. Fortunately, the listing agent worked closely for the seller and together they were able to get all units leased up before we went into underwriting.

SOLUTION:

We placed the borrower into a great 5 yr fixed loan program that had no prepayment penalty. The no prepay penalty was a positive loan feature since it is forecasted that rates will be dropping in the upcoming years therefore giving the borrower flexibility to refinance in the future.