This was a past client whom we had financed this building previously when it was purchased. They came back to us in need of cashing out so that they could build up cash reserves for a new business venture.
The client’s financial picture changed dramatically from the first time we had assisted them, and was merely a result of the startup costs that were associated with their new business venture.
It was necessary that all units have increased rents in order to meet the needed loan amount, and final underwriting took place after the effective date. We structured a new loan with the previous lender as a part of their retention program. It allowed us to waive Prepay.