Broker/lender called about his client that was over extended and wondered if I could do anything for him.He owned a country store in Hawaii that was encumbered by three mortgage loans and also had 6 MCA's - claimed his primary residence on the right angle street was free and clear for a hard money loan.Upon doing some analysis, I was able to determine that all the loans were on the store but the lot was actually the two addresses, with two structures and thus loans were encumbered by both structures.None of my lenders would touch it as there wouldn't be any "comps" or comparable sales of like properties on the island.I got a hold of a broker on the island and had him look up the assessments - he found each was assessed separately for a total of $2.2M. That suggests $2.5M - $2.75 valuation wasn't out of the question. Thus we could be looking at a 50% Loan to Value loan.I submitted that assessment information to one of my lenders a second time and got an approval for $1.34M at 10.5% Interest Only for 24 months.New monthly payment would be $11,7259 loan payments were costing him $119,682 a month.Saving him $108,000 a month in payments.There are options....just have to ask questions....do they have any property?Ordered appraisal and we hope we can do this one. Hoping the cost analysis valuation on the appraisal will pass underwriting if comps don'tOh, if it funds we get 3 points which I split with broker.
It got funded as a "NoDoc" loan. Just need a 1003, credit and a doc order form to get into processing. Loan Approval was from basic loan app and credit report. Most of my lenders turned it down due to comparable issue - it was mixed use on an island. Had one lender do it but was limited to 55% LTV. When appraisal came in a bit low, they would NOT raise the LTV to keep the same loan amount. Since there were so many MCA loans, getting pay offs was a bit of a challenge. And title found out ex wife had a lien which we had to have attorney resolve....I got them to accept $20K and personal note for the remaing amount. They filed a UCC after this loan closed.
Took 4 months - biggest issue was took 60 days to get the appraisal and borrower paid expedite fee. Also lender required septic inspection and water inspection.
I approached Steve in February with a very complicated real estate deal and after 4 months we just closed on it.
I know a lot of brokers come here to look for real estate lenders or people that can help and I am just writing this to let people know that he is trustworthy and will work day and night to help you get the deal done.
It was a pleasure to work with you Steve we will definitely do more business in the future.