We obtained a bridge loan for our client to do a cash-out refinance on his 8-unit multifamily property in Tampa, Florida.
Previously, he was turned down by several other lenders due to liquidity issues. However, we were able to get him approved by another lender.
This lender proved to be very flexible and accommodating to our client. For example, as a time-saver, the lender accepted the appraisal that was conducted on behalf of the previous lender. The lender reviewed the cost approach, sales comparison approach, and income approach in the appraisal, and accepted the valuations, despite the fact that the appraisal was done in February 2020, prior to the COVID-19 pandemic.
Not having to pay for another appraisal represented significant savings for our client, who had paid thousands of dollars for the existing appraisal.
The bridge loan program enabled him to quickly leverage his cash position in his 8-unit apartment complex. He plans to use the cash-out proceeds to invest in other real estate projects. The terms of his commercial loan include a 2-year term, 65% loan-to-value, fixed interest rate, and no prepayment penalty.
Because there is no prepayment penalty, he will be able to refinance to a longer-term program as soon as the market allows.