A six-unit apartment owner had a property and came to us. He was a tough negotiator.
He’d already invested all of his company and personal funds. Then, his contractor found some unexpected structural problems. These expenses brought him dangerously low on cash, and he needed more to finish. He needed a loan of $350,000 by the end of the month to finish the improvements.
(As you would expect, Fidelity gets many loan requests, from owners who are startled by unexpected tenant improvement needs).
We said it was likely his bank wouldn’t touch the deal. Since our money is private, we could help him. He agreed with our analysis and gave us the thumbs up to move forward on the loan.
There are only two tenants on the property, so our underwriting didn’t include much rental income. Even with the empty units, we were comfortable to know there was enough equity. It did get interesting when the title company required the borrower sign a document placing Fidelity ahead of any kind of mechanics liens for payments. This was because the property was close to completion of construction. That took a bit of negotiating but got completed.
He and his wife were very satisfied with the time and effort it took to get him the necessary funds. His wife was especially appreciative and later sent a gift to us as a thank-you.
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