This was a purchase transaction that was referred to us by one of our preferred Real Estate Brokers, and the property being purchased was owned by a seller with whom we had financed multiple properties for in the past. So we had hoped that this was going to be a very smooth transaction. Turns out to be wishful thinking on our part.
This was the borrower's first commercial property and therefore it took a bit for them to understand the differences between Multifamily & Residential lending and then we were up against input from a 3rd party who was not part of the transaction and who was providing bad advice to our borrower's. The borrowers were simultaneously in the process of refinancing three SFR properties so that they could get their down payment together ,we were not handling the residential loans and the slow process from the clients residential refinances caused this escrow to be extended 3 times. Our client was also on the front lines dealing with this COViD crisis as a Nurse and it really hindered his ability to respond to request in a timely manner. Lastly, our past client the seller had some reservations on selling because initially he was planning to buy an upleg property but for some reason that seller had decided not to sell, so this really cut back on the sellers motivation, and with the buyers constant need to extend escrow because his refinances were not complete, this almost killed the deal. What should have been a slam dunk turned out to be one tough deal.
We obtained great financing for the borrower with great loan terms and despite the headaches and hurdles we kept our heads and eventually the borrower got himself on track and we all worked together. At ALB we are always happy to help an investor reach their goals. Even when it turns out to be harder than it has to.