This was a purchase transaction for a client who had sold a smaller building and was moving into this building and another. Seller had owned for a long time and kept the rents real low.
As a result of the low rents we were going to be limited on loan dollars, and we discussed with agents and buyers and seller decided to raise rents in escrow, also the borrower needed a low doc type loan request.
We provided a great low doc program to the client, and the lender was able to underwrite off the increased rents, as long as we closed after the effective date. It was a win win scenario for all. It’s great when everyone is working together towards the same goal.