This business was losing money in 2012. Another challenge was this store does a lot of cash sales which is hard to prove. We had to do extensive underwriting to determine true cash-flow for the 2012 loss and also document all the cash sales before any lender would truly be serious about financing the property. The car stereo store owner wanted to buy the building because it would basically cut his rent payment in half with the collection of the rents from the other tenants. This was a savings of over $30,000 per year he could keep in his pocket if we could get it done for him! We were able to secure 65% LTV and the use of a seller note of 10%. 30 year Amortization, 3 year fixed, and his rate was 8.49%.
After-Market Car Accessories Store Purchase Of Building $800K
Sep 21, 2015 | Commercial Real Estate Loans, Success Stories