• (800) 510-2214
  • info@albcommercialcapital.com
  • Cal BRE License #01379610
  • (800) 510-2214
  • info@albcommercialcapital.com
  • Cal BRE License #01379610

24 Units Multifamily

Another Successful Funded Loan

  • $3,455,000
  • 5 Year Fixed @ 6.490%
  • Purchase -77% LTV
  • 24 Units
  • Multifamily Property
  • San Bernardino, CA


We were introduced to the borrower by the listing agents. The borrower had been working with a different mortgage brokerage on this transaction but they seemed to be falling short on the required leverage for the purchase. It was tough deal the client was in a 1031 exchange and their financials were not great, which cut out all potential top tier bank financing options. Additionally the sellers were splitting apart after sale and one of the members was less motivated to sell so they made the process a bit difficult as they were hoping that the buyer couldn't get financed. The need to perform was on as we were also hired by one of the sellers to assist them with the financing for their 1031 exchange upleg property. It was a stressful transaction to say the least.


Whenever ALB Commercial Capital enters into an assignment we determine what the potential hurdles are and seek solutions. For this transaction the biggest hurdle was really out of our control and that was the appraisal. The property had sold at a significantly higher price per door than other comps in the area, so all we could do was request the listing agents to prepare a comparable sales package listing a comp set to present to the appraiser. To add to the negatives the property was in need of major roof repairs, and there was a real big septic tank repair that was taking place while the appraiser was at the site. The next big hurdle was our borrower was really more of a candidate for a private money loan due to financials but that also needed maximum leverage, and then we had one less motivated seller, and lastly we had a competing broker who didn't want to lose. 


Once we identified all mitigating factors, we placed the borrower into a 30 year fixed low doc program. It was more of a subprime loan program but it offered to the borrower  a whopping 77% LTV and when you compare that to a short term Bridge loan at higher rates and with lower leverage, well our program choice was the winning loan program for the client. The property ended up appraising short of value as anticipated but it came in higher than we expected and the lender was gracious to increase their LTV to help make the deal work for the borrower. Buyer and seller were also able to come up to an agreement on the roof repairs and the lender did a hold back. What a relief for everyone when the deal finally funded and closed. We concurrently are closing one of the sellers upleg purchase, and the icing on the cake was that we got word that we will be working with the other seller to assist them with their financing. Sometimes when you don't see the light at the end of the tunnel you just need to keep plugging away, stay focused, manage the transaction and everyone's expectations, and lead everyone out of the darkness.