These were first time investors on Apartments referred to us by the selling agent, with whom we had just closed a transaction for one of his multifamily listings. He liked the way we worked so he gave us a chance at this transaction. The buyers recently sold some units they had and decided to give 5 units and up a chance. Since they had never applied for an apartment loan we had to educate them on the differences in residential to commercial lending.
The clients had limited funds coming from their down leg exchange property and they still needed to have sufficient reserves to meet a lenders requirements and those two factors pretty much dictated their purchasing power. We analyzed multiple properties for them before they finally got an accepted offer. For the transaction I think the biggest challenge was finding the replacement property.
We structured a nice 5 year fixed loan for the clients and closed quickly.