Pre-thanksgiving thought: Had a deal a couple of weeks ago that the buyer was in contract for over 3 years. Normally for the type of loan that we were structuring (multi-family light rehab) our guidelines stipulate 80% of purchase/initial value and 70% loan to after repair value. Problem was that our borrower was asking for over 90% of his purchase. His contention was that value has gone up enough in the last 3 years to justify more than our normal guides would allow. We agreed!! We said, ok let's max out at 70% of todays value, and we ended up giving him 92% of his purchase, (and ended up at a 65% loan to after repair value.) Sometimes guidelines need to be flexible when commonsense lending gets you to a different conclusion.
Joe Shabot
3w
Moshe Dweck smart dad u have sir
Well done Ezra! Perfect example of deal structuring that makes sense for you and the borrower/sponsor!
If it makes sense, it makes dollars 💵. Common sense is not that common. Nice work Ezra Dweck
Herman Katz
3w
Valid point
Joe Racamato
3w
Now that’s shrewd underwriting! Love it! 👏
Nice!
Commercial mortgage broker | Specializing in closing deals of all sizes and asset classes | Co-Founder @ CapGuide Funding
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