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Updated about 2 years ago,
- Washington, DC Mortgage Lender/Broker
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1031, DSCR, Multi-Family all rolled into one. US Commercial
Investment Info:
Large multi-family (5+ units) private money loan investment.
Purchase price: $2,200,000
Cash invested: $200,000
We facilitated the purchase of a beautiful older multi-family property in Kansas City, MO. Borrower had excellent credit and the property was 90% occupied although for the most part, it was leased under market so the DSCR was tight.
The borrower was working under a 1031 exchange and we had limited time to get the loan done, but it was clear to close within 30 days.
No income verification. No seasoning of funds to close. 30 year term.
What made you interested in investing in this type of deal?
The challenge of getting this loan through with such a compressed time frame.
How did you find this deal and how did you negotiate it?
Working with the borrower and seller to negotiate a successful close.
How did you finance this deal?
We work with several lenders, but always tailor the loans to meet the specific needs of the borrower. In this case, we had to work with a lender that had a sense of urgency because of the 1031.
How did you add value to the deal?
Communication. Helping to explain the nuances of the loan to the borrower and the Realtors who had never heard of a DSCR loan for multi family before.
What was the outcome?
Successful close.
Lessons learned? Challenges?
Don't leave the negotiations for terms of the loans solely in the Realtor's hands. They don't always understand how to make the numbers work.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes. PM me and I'll get you the Realtor's information. Both sides of the deal worked well together.