The Client
A self-employed real estate investor with a British passport living in Hong Kong. He owned and managed a small boutique investment firm and wanted to diversify his holding in U.S. real estate.
The Property
A self-employed real estate investor with a British passport living in Hong Kong. He owned and managed a small boutique investment firm and wanted to diversify his holding in US real estate.
The Deal
The client needed to raise capital in order to purchase the three unit property. To raise the money, the client wanted to refinance/cash out their existing 4 bedroom beachfront rental property lowering their current rate for a 5 year ARM which was maturing in 6 months and get into a lower rate fixed mortgage.
The Challenge
The main challenge we had with this case was that the client had a complicated income stream. The income from the business was extremely “lumpy” and although the total earned income was high, the consistency was sporadic. This made the accounts difficult to interpret and created a mortgage experience with a well-known international bank to drag out three months to eventual be declined in the end.
The Solution
Although the clients’ business was very niche in his field, he had been running this successful firm for over a decade with an exceedingly good accounts track record. We were able to highlight the stable business history to the lender, structure the income documentation in a clear and precise manner in order to satisfy the lender. The lender subsequently released the equity portion from their other property, and approved the loan on their new purchase.
Loan Details
| Loan Type | Property Value | Loan Amount | LTV | GMG Program |
| Refinance and Purchase | $1,875,000 | $1,312,000 | 70% | GMGFN Lite |
| Loan Type | Refinance and Purchase |
| Property Value | $1,875,000 |
| Loan Amount | $1,312,000 |
| LTV | 70% |
| GMG Program | GMGFN Lite |
