Aug 14, 2023 4 Min read
Sometimes the most challenging aspect of a deal can be time. Today’s deal spotlight centers on the cash out refinance of a Multifamily asset in Dallas Texas where our team utilized our prowess in negotiation and worked closely with the borrower in order to close concisely to prevent them from paying double interest.
The borrower came to us seeking a refinance but also had a looming maturity date coming quickly and needed quick and concise work. The next challenge was that Fannie Mae required a Wind Hail Deductible policy that was setting the client up for an extremely high deductible exceeding $120,000. In addition, the current carrier declined to reduce the deductible amount while other carriers were declining outright.
Our team was able to perform the deal through close in precisely 32 business days while purposefully closing the deal on the final day of the month. This prevented the borrower from having to pay double interest. Our team made it a point to walk the property with the client early on in the process to detail out what items needed fixing prior to moving the deal into closing. This allowed for a clean PCA (Property Condition Assessment) Report and no reserve holdbacks. Finally our team was able to negotiate with the lender to submit a waiver to dismiss the requirement for a Wind Hail Deductible Policy with no guarantee of acceptance. However, we were successful in ensuring the waiver’s acceptance and the insurance provider was able to stay with the current carrier. Ultimately, we were able to secure the following terms:
When the client came to us with a challenging situation, they had the confidence to know that our team could deliver. Our collective expertise mixed with our broad industry connections and personalized approach to every deal, we are the right partner to have for any commercial investment. If you have a problem on a tight timetable and need the right partner, contact us at Terrydale Capital today.
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