CASE STUDY TWO
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Single Family Estate – Clearwater, FL
Transaction Details:
Solution:
End Result:
Single Family Estate – Clearwater, FL
- Loan Amount: $14,100,000
- Purpose of Loan: Refinance/Option execution
- Capital Source: Private Lender
- LTV: 65% of the ARV
- Term: 12 months with 6 month extension option
- Rate: 11% + Fees
- Amortization: Interest only
- Prepay: 9 months interest
- Recourse: Full
Transaction Details:
- This particular transaction had a myriad of hurdles to overcome. The sponsor was a foreign citizen with limited liquid assets and income and the property was the “white elephant” in the area. On top of this, the property in question was an option being executed, so we had to treat this like a refinance even though the sponsor was not currently on title. The goal was to execute the option and finalize his repairs in the main and guest house so the sponsor could list and sell the asset.
Solution:
- To solve these issues, our investor was able to blanket two of the client’s other assets and structure as a refinance as opposed to a purchase.
End Result:
- As a result, the sponsor was able to complete the renovations and was left with ample debt service to hold the property while he waited for the right buyer.