An out-of-state investor wanted to purchase two 6-unit buildings in Riverdale, IL from the same seller. The issue was that one of the properties cash-flowed sufficiently and the other building did not. The seller would not split them up. It was either buy them as a package or nothing.
This was a deal that would not have ever happened had it not been for this portfolio program and the underwriting guidelines surrounding it. We were able to take the combined cash flow from both buildings and then subtract the expenses from this combined cash flow. 99.9% of the programs out there in the marketplace would only look at the buildings separately and each one would have to cash-flow on its own.
This was the only way we would be able to make this deal work. We were able to do a 30-year loan for both properties in an area that most commercial lenders will scrutinize heavily because of the crime rate. Now our investor is really excited and can’t wait to add more buildings to his real estate portfolio!