ASSIGNMENT:

A new client introduced by a long-time affiliate partner WFG Title. Upon consultation with the  borrower, we learned that he was one of many beneficiaries of a trust that held multiple assets. Of the assets in the portfolio, he wanted to acquire two apartment buildings.

CHALLENGE:

The selling or separation of the assets held in the trust were overseen by an attorney which slowed the process, then we had all of the other siblings that had to agree on everything, then we had some credit challenges that we had to overcome.

SOLUTION:

The best solution for this transaction was to structure a bridge loan that cross collateralized the two properties the client wanted to keep and allowed for us to treat this as a refinance where the cash from the proceeds paid off funds to the trustees or the siblings, and also the cash out allowed the borrower to cleanup credit issues, and in the refinance the loan was made to a newly formed entity tidying up any questions on vesting in the future refinance.  All of this was preparing the borrower to be able to refinance again in 30-60 days into normal bank financing.