Reduced Documentation Multifamily Scenario - Silver Hill Funding

Making Sense of Reduced Documentation Programs: Cash-Out Refinancing

Making Sense of Reduced Documentation Programs: Cash-Out Refinancing

Posted by
| Comments Off on Making Sense of Reduced Documentation Programs: Cash-Out Refinancing
Cash-Out Refinancing

If you remember our blog post about reduced documentation programs, then you may recall our borrower Danielle. To jog your memory, Danielle purchased an underperforming, 12-unit multifamily property. She spent 6 months completely renovating the building and was able to fill it with tenants again.

Danielle signed a 2-year term loan with a hard money lender when she first decided to invest in the commercial property. She took the bridge loan because it was the only loan type she was able to qualify for at the time and it was a quick solution for her.

She originally thought it would be about two years before she could complete renovations on the building and re-tenant each of the units. However, because she was able to accomplish both in a much shorter time period, Danielle has decided now would be a good time to refinance.

She hopes to refinance to get a lower interest rate than what she is currently paying. She is also looking to cash out her equity of the property so she can invest in additional commercial properties.

Danielle’s broker, Ben, listens to her story, motivations, and objections, and is able to quickly understand her REAL needs.

Danielle’s Needs

  • A lender willing to listen
  • Quick turnaround
  • No seasoning requirements
  • A lender that values property performance over income documentation
  • Lower interest rate than her current hard money loan terms

The Right Program for Danielle

After Ben identifies her needs, he is able to immediately match Danielle to the right lender and program.

He reaches out to Silver Hill Funding and inquires about their Lite Doc Program, which offers loans with no required tax returns or 4506-Ts to commercial investors. After listening to the story behind the property, Silver Hill decides to move forward with the deal.

The refinance on Danielle’s commercial mortgage loan is approved based on her credit history, rent rolls for the property, and a few other financial documents.

The process is quick, and the deal is closed within a couple of months. Through Silver Hill’s Lite Doc Program, Danielle gets a better rate on her property and the cash-out to put toward her next multifamily property investment.

If Ben had not identified the right program for his client, he would have negatively altered the likelihood of the deal closing in time or even at all. However, because he listened to the whole story and did not just focus on only one of Danielle’s needs, Ben saved time, got her exactly what she needed, and gave himself more opportunities to close other deals.

If you have a client who could benefit from a reduced documentation program, become an approved Silver Hill broker and submit your deal to us.

Related Posts

Bringing Back Smart, Small-Balance Commercial Lend... You heard it here first: Silver Hill is bringing back smart, small-balance commercial mortgage lending. After much planning and preparation, we are ex...
3 Steps to Delivering Complete Loan Submissions A lender expects that a broker has a complete picture of a transaction before submitting a small-balance commercial financing request. A well-organize...
Getting Started with Small-Balance Commercial: Par... Go to the Source Tips for finding your first commercial loan opportunities Ready, set, go! Your plan is in place, you’ve positioned yourself to ...
Help Your Clients Get the Right Take Out Solution ... One of the most interesting aspects of commercial real estate lending is the fact that every client has a different story and unique needs. Whereas re...
Erin Torbett

Erin Torbett

Designed & Developed by Figment Design