This was a purchase transaction for a repeat client that had been referred to us by one of the top Real Estate brokerages servicing the Inland Empire. A few months prior we had closed on a transaction for this investor a few blocks from the subject property. The agents had this pocket listing and the investor wanted to acquire more in the market area so the brokerage team ended up selling a small apartment building owned by the investor so that he could exchange up into this asset.
Our biggest challenge on this transaction was that from the time we closed the last transaction for this borrower he had decided to leave his employment to focus entirely on managing and building his apartment portfolio. You have to respect his ambition but leaving a nice W-2 salary paying job put a bit of a kink as to what financing programs could be offered, and then to top it off the property was in a non-core market area which added to the challenge in identifying the best financing options.
We were able to package this transaction utilizing Freddie MAC's Small Balance Program which was low doc, and open to the market area. Everything went smooth and we closed the transaction on time. Off to the next deal.