A few years prior we had helped this client when he purchased these units. He returned to us with the goal of achieving maximum cash out to be used towards acquiring another asset or two.
We came to learn that the borrower had left his previous employment and his tax returns were not that great as his earnings on his building had been affected during the covid pandemic.
The current income on the subject property had increased significantly form the time we had initially financed the property. The property remained in great condition, and some previous operating expenses were all together gone. We structured a low doc loan program with Freddie MAC SBL program. Additionally, since rates had risen and a new rate was to be higher than the current rate we countered this by obtaining a new loan with 7 year fixed & with 4 years of interest only. At the end of the day the clients remained closely to the current payment but allowed him to cash out a generous amount of funds.