- Borrower required financing to purchase a 24-unit multi-residential property on a tight timeline
- Borrower required a loan for 80% of the purchase price, which was above market value.
- Institutional financing was unavailable, given the condition of the property and below-market rents.
- Borrower had a separate multi-unit residential property that could be pledged as collateral. At the time of closing, the collateral property was undergoing renovations and was 30% vacant. This would have presented a substantial challenge in getting any institutional funding even if only used as collateral.
- The borrower had a defined plan to improve the property and raise rents to current market rates.
- By working closely with the borrower and their mortgage broker, and with an understanding of the borrower’s business plan to increase rents we were able to:
- Meet the tight closing deadline for the purchase (less than 2 week closing from when the file was received).
- Register a 2nd mortgage against the collateral property which reduced the combined LTV to less than 75%.
- We were able to structure a loan with a competitive interest rate, allowing the borrower to carry the loan while operating and improving the properties.
Loan Amount: $2,880,000
LTV: 80.00% of purchase price
Location: Brantford, ON
Priority: 1st and 2nd mortgages against multi-residential properties