This was a purchase transaction and the clients were referred to us by the Listing CRE agent. Property was being sold as an apartment building but previously the property zoning and use was for an assisted living facility. The buyers wanted to use it just as an apartment building.
The buyers/borrowers had owned no other multifamily properties on their schedule of real estate and this made it tough on a large property and in an area like San Bernardino. Additionally we come to learn of age restrictions on title.
We structured a loan at 75% LTV utilizing one of our Correspondent lender loan programs. To get around the lack of management experience or lack of multifamily ownership experience the clients opened a sizeable operating account with the lender.