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Mfish
133 Posts |
 Posted - 08/20/2008 : 07:13:08 AM
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Property is a large 3 story estate house with 10+ landscaped and professionally maintained acres.
Its located in of Bucks County, PA. It is owner occupied and is 1 unit. I have one appraisal for 4.5 million and another for 4.3 million.
This is a cash out refi. Borrower is looking for approximately $700,000 cash in hand. Loan size is $3,000,000.
Income is stated - Very successful attorney with 3 offices and 13 years in business.
Assets (verified) – 1.4M retirement, 800k non-retirement.
767 FICO mid score.
Has in addition, 2 commercial properties, 1 free and clear, and 1 other residential property. Borrower is not willing to cross-collateralize properties or use liquid funds (pledged assets) for collateral.
Borrower is willing to entertain a balloon payment in as short as 5 years but preferably 10 and would prefer a fixed rate but is open to an ARM depending on rate, terms, and conditions.
Finances and trust situation are complicated for next 2 to 2 1/2 years however there is an exit strategy: For short term -- There is a large trust fund that will be available in 2.5 years. Sometime after that, when it is convenient to liquidate some funds, the loan would be paid off in full. The trust, however, cannot be documented by the law firm overseeing it, at present. There presently exists a somewhat adversarial relationship, so the borrower does not want the attorneys, involved with the trust, involved with this loan or any of her other finances. The best we can do regarding showing the existence of the trust is a letter from the bank indicating that monthly deposits of 35k are made. Beyond that, the bank has no information regarding the total value of the trust or when it will become available in its entirety.
I have a full package.
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dkendall1979
10147 Posts |
Posted - 08/20/2008 : 08:00:25 AM
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You're fighting an uphill battle on this one and have probably gone about it the wrong way out the gate.
Your client is an attorney, and more likely than not, far more educated in his practice than you or I. However, he doesn't understand the obstacle he's facing in limiting his options by telling you, "I'm not willing to do this, and I'm not willing to take this".
Even if this was Full Doc, you'd have issues with cashing out that much on a trophy home as most lenders would limit you to $500k cash in hand, but I digress...
If he's willing to take either 55% SIVA, Cross the other properties to get to 65% SIVA, or pony up the tax returns to get up to 70% cash out, then I can put something together for you. But as it is, not going to happen how he wants it. |
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bkimball@firstin
127 Posts |
Posted - 08/20/2008 : 08:14:52 AM
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I ahve some sources that I can send this to. However like David said you are fitting an up hill battle. With the equity he has we might be able to get it done on one property but the rate is going to be high. What type of terms is he expecting to get and is he a realistic borrower.
Le me know and I will help out as much as I can. |
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Mfish
133 Posts |
Posted - 08/20/2008 : 08:57:31 AM
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I realize this one is hard enough as is in today's market and for the borrower to put me in a box is unrealistic. She has applied with numerous companies before coming accross my desk but as an attorney is used to getting her way. I believe if I tell her that if she wants the cash she is going to have to be flexible I think she'll be willing to budge on some of her conditions.
As far as tax returns, with all the write off's the DTI will not work. As far as cross collaterilization, if the bulk of the money can lien on her primary and a smaller portion liened on one of her other properties she would be willing to entertain that.
As far as rate, she thinks something in the 7's or 8's is fair although if its in the 9's or 10's and that is all she can get then if that higher rate makes the deal happen then she will go for it as she does not plan on holding on to the loan for more than a few years.
Within these more flexible parameters can either of you do anything for this borrower? |
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KHufford
5940 Posts |
Posted - 08/20/2008 : 08:58:35 AM
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Its a white elephant..
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bkimball@firstin
127 Posts |
Posted - 08/20/2008 : 09:48:42 AM
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Rates not going to be in the tens but it is possible to do the loan. If you would like to work on this please send me an email to discuss further. I know she is a lawyer and if she is shopping you around you are going to be dealing with a ton of bull ****. I am a very upfront person and will be blunt with the borrower as to what she is able to get funded. Hopefully she may appreciate this. Everyone she is going to shop this to is going to sya they can get her great rates but in the end when they decline the loan she will come back to us. as long as she hasn't killed her credit score with all the inquiries. Let me know.
Thanks |
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KHufford
5940 Posts |
Posted - 08/20/2008 : 09:51:38 AM
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quote:
Originally posted by bkimball@firstinmaine.com
Rates not going to be in the tens but it is possible to do the loan. If you would like to work on this please send me an email to discuss further. I know she is a lawyer and if she is shopping you around you are going to be dealing with a ton of bull ****. I am a very upfront person and will be blunt with the borrower as to what she is able to get funded. Hopefully she may appreciate this. Everyone she is going to shop this to is going to sya they can get her great rates but in the end when they decline the loan she will come back to us. as long as she hasn't killed her credit score with all the inquiries. Let me know.
Thanks
Why would you want to work on this? Its already been everywhere...
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bkimball@firstin
127 Posts |
Posted - 08/20/2008 : 09:56:13 AM
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| Hey if it can be done and they are willing to take the higher interest rate why not. I'm not going to loose sleep over it but I like looking at the difficult stuff. |
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Mfish
133 Posts |
Posted - 08/20/2008 : 09:59:36 AM
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| Bill - I just emailed you |
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velecico
3935 Posts |
Posted - 08/20/2008 : 10:02:21 AM
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Would he be willing to take a loan against stock collateral , if so , it would not have a margin call and the rates are in the 7s |
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KHufford
5940 Posts |
Posted - 08/20/2008 : 10:45:20 AM
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Fisrt off he is asking for 66% LTV - that doesnt even take into account FFES.
After 8-10% in fees you are now way over 70% which hard money will not even do. The fees alone will take away his benefit of any cash out.
THE DEAL IS DEAD!
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Mfish
133 Posts |
Posted - 08/20/2008 : 12:42:31 PM
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| True, I am technically asking for a hair over 66% LTV based on a 4.5 million value. However, the $3,000,000 already accounts for a helathy amount of fees being financed in the new loan. If the LTV can only go to 65% rather than 66% then she the borrower still gets enough cash in hand to accomplish their goals. |
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