This was a cash out refinance. The interesting part is that we had financed this property as a new purchase transaction less than 1 year ago and structured a program that allowed us to come back in less than 1 year and the lender would waive the prepay and allow us to go off a new appraised value.
Our biggest concern on this transaction was the appraisal. Although the lender was very flexible with no seasoning requirements, we still had to get by the appraisal.
We worked with the borrower and his management team and made sure we had no errors in their recent rent bumps, and we helped put together a capital improvement summary detailing what work had been done since acquisition- less than a year ago. Ultimately the appraisal came in at the value that was needed. The borrower almost cashed out all of his initial investment and all within less than 1 year. Obviously client was ecstatic.