THE CLIENT

Family businesses come in all shapes and sizes, including a property management business in Brooklyn, NY. The second-generation owner inherited properties from his parents in 2019. Of course, as often happens, along with the properties, the new owner also inherited a number of financial challenges.

One of the properties in particular, a six-unit multifamily property, had several financial challenges that needed to be addressed.

THE CLIENTS’ CHALLENGE

The property owner was in urgent need of a cash-out refinance. There were back taxes on the property that had to be paid and a past-due water bill that had to be brought up to date. There were also several improvements that needed to be made to make the rental units comparable with other available rental apartments in the area.

They were hoping for fast funding with a simplified approval process. The faster they could secure the loan the better, for both the overdue bills and to get started on the renovations as soon as possible. In addition, finding the right lender was more of a challenge than it might have been because of the borrower’s low credit scores. On top of all that, many banks wouldn’t accept paying back taxes as an acceptable use of the loan. They clearly needed an alternative to banks and traditional lenders.

THE APEX COMMERCIAL CAPITAL SOLUTION

$500,000 • Cash-Out Refinance • Closed Within 30 Days

The Broker working with the property owner had a longstanding relationship with Apex Commercial Capital. They knew that Apex Commercial Capital had the flexibility to overcome the many challenges that came with the loan. The Broker knew that Apex Commercial Capital would look beyond the numbers, which was necessary because of the borrower’s low credit score. Apex Commercial Capital also has a history of working with borrowers who need to pay off back taxes, so that was no issue.

Apex Commercial Capital closed the loan quickly – within 30 days of commitment. They provided a cash-out refinance on the property that gave the owner the funds to pay off the taxes and the water bill and begin the necessary improvements.  

FINAL RESULTS

Today, thanks to the cash-out refinance from Apex Commercial Capital, the property owner’s back taxes are paid, the water bill is up to date, and the planned property improvements are underway. Once the repairs and updates are finished, the borrower can charge more in rent, bringing in added income to the business. Plus, the business owner now has consolidated consistent monthly payments through the Apex Commercial Capital fixed-rate mortgage, so there’s no worry about rate increases over time.

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