Tag Archives: multi-family

Lighthouse for beach hotel but it's SA

Beach Resort Multi-Family Refinance

Senior Associate Ryan Dumas is pleased to announce the refinance of a multi-family loan at a popular beach resort town.

Our clients, who owned a very rare property on a vacation destination island, had specific asks for their multi-family refinance.

First, the loan needed to be affordable with better rates than their current note.

Second, they were looking to pull some cash out, which narrowed the interest of multi-family lenders.

Third, we needed to find financing with a lender that was somewhat flexible. Many multi-family lenders have hard and fast rules: insisting on 12 month leases or even 90 days at 90% occupancy. This lender understood the special nature of this property. They particularly understood the very high demand for housing in a resort community.

Ryan Dumas stated, “I’m thrilled that we closed this loan for our clients. Rates were all over the map before we closed this loan. Sourcing a non-agency loan was the key to this loan’s success. Our clients were able to connect with an understanding lender. The result: a higher loan with greater cashout.”

Looking for Multi-Family Financing?

• Get your paperwork ready. Lenders will request rent rolls, copies of leases and financials. Keep your files up to date and in good format (where the numbers from the various reports are congruent with each other.)

• Discuss options with our team: Many lenders want to finance multi-family projects. As a result, there are different types of loans that might be applicable for your project. We can explain the benefits of non-Agency loans, Fannie and Freddie backed loans, conventional loans, SBA Loans (for smaller properties) and even USDA loans for projects outside of metro areas.

• Keep up your occupancy: If you are seeking a refinance, lenders wants to see a healthy occupancy rate. If you are purchasing an underperforming property, the lenders need a strong, clear business plan to rehab and turn around the business.

Our GRP Capital team specializes in finding the right lender for each project. We save our clients time and money, as we research the best choices for their funding sources. Our experience allows our clients to find funding that is project-appropriate and will allow for sufficient cash flow. Whether you are looking to refinance or purchase, we would love to discuss your business plans with you. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.

Wallet for personal financial statement blog

How to Fill out a Personal Financial Statement (PFS)

Lenders typically request that borrowers fill out a personal financial statement (PFS) when applying for a loan. This personal financial statement can vary somewhat, although the SBA uses Form 413. A PFS shows the bank a borrower’s cash position, how much liquidity they have to take on a new loan and their ability to pay back future loans. It’s important to understand the typical questions on a PFS, so you can fill them out accurately. Below are components of a PFS that are most confusing to our clients.

The Asset Portion of the PFS:

• What is Cash on Hand? Cash on hand is money that you have in checking and savings accounts and in cash on your person that is immediately available to you (liquid). Be prepared to furnish bank statements to support your cash availability. This is different from stocks and bonds, IRA’s or even Bitcoin.

• What do I need to know about my life insurance policies? You only need to declare life insurance policies if you have a whole life policy with a cash surrender value. So if you have a term life policy, you cannot consider it as a current asset, as it has no cash value.

• Real Estate and Automobiles as Assets:  Estimate the value of the automobiles you have and any real estate you own. This real estate includes your residences (primary and vacation homes). In addition, you will need to calculate the value of any commercial real estate you own. If you are a partner in a business that owns real estate, you can only claim the value of the real estate equal to the percentage of the business you own.

Declaring Liabilities on a PFS:

• Notes Payable and Installment Accounts:  Gather all of your personal loan and credit card statements to fill out the liabilities section of the PFS. You’ll need to know what your payments and balances are.

• Car Loans and Mortgage Loans: Your automobiles and real estate are assets, but if you owe money on them, they are also liabilities. Complete your PFS by stating what the payments and balances are, the interest rate, and in the case of mortgages, who the lender is and when the mortgage will be paid off. If your commercial real estate is for a business in which you are a partner, you only need to declare the percentage of the mortgage equal to your ownership percentage.

• Loans Against Life Insurance: Again, this is only applicable if you have a whole life policy (not a term policy) and you have taken out a loan against the cash value of the policy. Otherwise, this should be left blank.

• Unpaid Taxes: Most lenders would prefer that you pay off overdue taxes. But you can show a small amount on your PFS and work through that process prior to closing.

Net Worth:

Net worth is an equation. If you add up all your assets, and subtract all your liabilities, that is your net worth. It does not include your salary or your earning potential, just your declarable assets and liabilities.

We work closely with our clients to make sure the PFS is accurate. If you are considering a loan for purchase or refinance and would like to discuss your plans, feel free to contact our team. We will get to know you and your business objectives. Then we will recommend the best loans for you to consider. Initial consultations are free.