Our commercial real estate client had an 800 credit score and a duplex that was fully occupied with cash-flowing very well. Only a 60% loan-to-value. This sounds like lending nirvana. It should be no problem for this guy to go to any bank in the country and get a real estate loan.
Well…here is his story.
His existing bank won’t renew the real estate loan, because they were going out of business. His note was then purchased by an investor group who does not service the notes they purchase. He needs to find long-term financing somewhere. Should be no problem. He gets turned down by five banks before he finally finds us. Why? He seemed like a pristine client.
The property was unique. It is a duplex with the two units that are attached with two separate PIN numbers or Tax ID numbers. This made his life difficult because no bank would handle this type of situation. We found a private lending source that could understand how the property was classified. We got the deal done for him and he can now relax knowing that his property will not be foreclosed on.