fundings
fundings
Funded Amount: $360,000
Type: Condo
Lender: Conventional & Alt. Common Sense
Location: Surrey, BC
Loan-to-Value (LTV): 75%
undervalued pre-sale
Two business owners, through a holding company, purchased three presale condos in Surrey Central, valued at $1.6 million, to start a long-term rental portfolio. The properties were financed with a 75% loan-to-value ratio, totaling $1.2 million - two through
conventional bank loans and one through an alternative lender.
As the closing date approached, the market cooled, and their broker could only secure financing at 65% LTV. With just 10 days to close, they faced a $500-per-day penalty per condo if the deal didn’t close on time.
The Problem
The clients successfully acquired all three condos, launching their rental portfolio.
Outcome & Key Takeaways
- Diversifying lenders helps secure financing in challenging markets.
- Strategic negotiations can prevent unexpected costs and delays.
- Long-term vision and flexibility can turn challenges into opportunities for growth.
We worked with both conventional and alternative lenders to ensure the two bank - financed condos closed as planned. For the third unit, we secured financing through the common-sense lender, providing the flexibility needed to avoid penalties.
The Solution
Funded Amount: $360,000
Type: Condo
Lender: Conventional & Alt. Common Sense
Location: Surrey, BC
Loan-to-Value (LTV): 75%
undervalued pre-sale
Two business owners, through a holding company, purchased three presale condos in Surrey Central, valued at $1.6 million, to start a long-term rental portfolio. The properties were financed with a 75% loan-to-value ratio, totaling $1.2 million - two through
conventional bank loans and one through an alternative lender.
As the closing date approached, the market cooled, and their broker could only secure financing at 65% LTV. With just 10 days to close, they faced a $500-per-day penalty per condo if the deal didn’t close on time.
The Problem
We worked with both conventional and alternative lenders to ensure the two bank - financed condos closed as planned. For the third unit, we secured financing through the common-sense lender, providing the flexibility needed to avoid penalties.
The Solution
The clients successfully acquired all three condos, launching their rental portfolio.
- Diversifying lenders helps secure financing in challenging markets.
- Strategic negotiations can prevent unexpected costs and delays.
- Long-term vision and flexibility can turn challenges into opportunities for growth.
Outcome & Key Takeaways
