Case Studies: Commercial
Autobody Investment Property
Property Location: East Bridgewater, MA
Purpose: Purchase
Reason to Purchase: Self-use
Loan Amount: $745,500
Loan Type: 30-Year Fixed-Rate Mortgage
Interest Rate: 11.24%
PPP: 5 Years
Hurdle:
This was a time-sensitive purchase, as the borrower had already lost valuable time with another lender, putting their deposit at risk. Additionally, this was their first time owning real estate beyond their primary residence.
Result:
We leveraged the borrower’s strong autobody industry track record to offset their lack of real estate experience and secured their deposit by issuing a commitment letter, ensuring timely funding.
Seven-Unit Multifamily Property
Purpose: New Purchase
Purchase Price: $1,250,000
Funded Amount: $937,500
LTV: 75%
Type of Mortgage: 30 Year Fixed Rate Mortgage (First 10 years interest only)
DSCR: 1.15x
FICO: 740
Prepayment Penalty: 5 Years
Interest Rate: 7.875%
Six-Unit Multifamily Property
Purpose: Purchase
Purchase Price: $750K
FICO: 746
Loan Amount: $525K (70%)
Type of Mortgage: 30-Year Fixed-Rate Mortgage
DSCR Ratio: 1.3X
PPP: 5 Years
Interest Rate: 9.375%
Hurdle:
The borrower faced a time-sensitive purchase involving two properties, securing two separate mortgages from different lenders. Both transactions needed to close on the same day with the same seller as part of a bulk acquisition.
Result:
We utilized our DSCR program for 5-8 unit properties to help the borrower efficiently purchase the property. Our program allows one or more vacant units for multifamily properties.
Warehouse Property
Estimated Market Value: $440K
Purpose: Cash-out
Loan Amount: $286l (65% LTV)
Type of Mortgage: 30 Year First Lien Fixed Rate
Interest Rate: 11.74%
Prepayment Penalty: 5 years
Hurdle:
The subject property was an industrial warehouse owned by an LLC, a subsidiary of a foreign entity. The borrower, a Korean resident with limited English proficiency, sought financing for a relatively small loan amount on the property.
Result:
Communication with the borrower was facilitated through one of his employees, allowing us to collect all necessary underwriting documents, including the operating agreement and shareholder register of the foreign entity. By reducing the LTV from 70% to 65%, financing was successfully secured for our foreign national client
