Buyer secures financing for his investment property in 5 days with Milo
By Colin McMahon
January 12, 2024 • 4 min read
In the dynamic world of Miami real estate, time-sensitive deals are not uncommon, but this particular case involving an investor and a tight closing deadline stands out for its complexity and the seamless solution it found.
Our client, referred to us by a Lennar agent, was an experienced investor with his sights set on a $480K single-family property in Miami. Initially planning an all-cash purchase, he soon realized the implications of this decision on his overall investment strategy – locking up all his liquid assets in one venture. With the clock ticking and a hefty $200K deposit on the line, he faced a significant dilemma.
Enter the pivotal role of his realtor, who understood both the risk of the investor losing his deposit and the potential missed opportunity. Knowing that traditional financing routes were too slow for the two-week window, the realtor recommended exploring alternative options. It was a decision driven by the need for speed but grounded in the understanding of the real estate market's intricacies.
Presented with this scenario, we focused on crafting a solution that was both rapid and fitting. The bridge loan we proposed, at a 60% LTV, was designed to safeguard the investor's liquidity while also keeping the deal on track. This kind of strategic financial maneuvering is crucial in high-stakes real estate dealings, where flexibility and timing often dictate success.
What made this arrangement particularly noteworthy was the no-repayment-penalty aspect of the loan. In the real estate world, where early repayment can often lead to additional costs, this feature stood out as a mark of understanding the client's need for future financial maneuverability.
The quick closing of this loan, achieved in just 5 business days, was not just a demonstration of efficiency. It was a critical factor in ensuring that the investor didn't forfeit his deposit, and it played a key role in aligning with the homebuilder's requirement to close by the quarter's end to meet division goals and deadlines. This aspect of the deal was as much about meeting the investor's needs as it was about fitting into the broader dynamics of the real estate market's timing.
This story is more than just a transaction; it's a reflection of how understanding the nuances of real estate investing, the importance of timely decisions, and the ability to provide flexible financial solutions can come together to create successful outcomes. In a market where time can be as valuable as money, finding the right partners to navigate these waters is crucial.
Milo, your partner in financing where traditional lending falls short. Reach out to our team at firstname.lastname@example.org for inquiries.
The length of time required to process and originate a mortgage loan can vary based on various factors, including but not limited to the applicant's financial profile, property details, and regulatory requirements. While we are proud of our ability to expedite the mortgage loan origination process in the instance highlighted above, this should not be construed as a guarantee or indication of the same speed for origination of all mortgage loans.
The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.
Loan Consultant Sales Team Lead
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