ASSIGNMENT:

This was a purchase transaction. We were introduced to the investor by his realtor. Financing the property was really not an issue but it was some work in cleaning up the vesting so that it worked for the lender and met the borrowers 1031 exchange requirements. During the transaction we ended up working on another deal that the investor had started elsewhere with a different lender, but they fumbled big time, so we came in and saved the transaction.

CHALLENGE:

The biggest challenge was the vesting.  The client was in a 1031 exchange and how he was making his purchase was utilizing a disregarded entity that was part of an entity that had owned the properties he had sold. Let's just say it was complicated and riddled with challenges.

SOLUTION:

Fortunately, we have good relationships with the lenders we work with and are also knowledgeable in working with different types of entity structures. Ultimately, we simply had to clear up his operating agreements so that they met the lenders requirements and satisfied his exchange. Naturally everything was run by his CPA and Attorney for their blessings too.