Funding Purpose
Provided Cash-Out refinance to help the client purchase a Singe Family Residence for personal use.
Property Description
Two separate tenants including a Day Care Learning Center and Tire Auto Center.
Sponsors
Retired former owner-operator of the two businesses occupying both buildings.
Challenges
- COVID caused tenants to close and ask for Rent Abatement
- NOI for last 12 months was lower than pre COVID
- 4 separate LLCs requiring multiple loans
- Client needed max proceeds to buy a house
Solutions
- Structure loan with Credit Union that understood the complexity of sponsorship
- Maximum Cash-Out option for the client to purchase a house
Funding
- Loan Amount (LTV): 60%
- Interest Rate: Combined 4.25%
- Term: 10 Y
- Recourse: full Recourse
- Prepayment: Open W/O penalty
