Term: 5 Years Fixed, 30 Year Term
Amortization: 30 Years
Recourse: Full Recourse
Prepayment Penalty: 5,4,3,2,1
Lender Fee: None: 5.25%
George Smith Partners arranged a cash out permanent refinance of an apartment building in Burbank, California. The Sponsors moved abroad and had a difficult time getting their lender of 28 years to refinance their investment property. GSP worked diligently to find the Sponsors a new lender who was comfortable with having Sponsors living overseas.
Most lenders were not able to finance this transaction due to the fact that they didn’t have a warm body in the States. The Sponsors also had low credit scores with recent late payments on their credit report as well, which deterred numerous lenders. The Sponsors also had no liquidity in the States and most lenders like to see around 10% of liquidity to loan amount.
George Smith Partners worked with a lender to get them comfortable working with foreign investors and pre-arranged the signing of loan documents with the U.S Embassy. GSP explained in great detail why the Sponsor’s credit scores were low, and why there were recent late payments on the Sponsor’s credit report. GSP demonstrated a plan to both the Lender and the Sponsors where everyone felt comfortable and closed the loan in 34 days.
- No related financings.