See what’s possible when capital gets creative.
How we structured a complex loan to secure the exact loan amount our client needed.
- Property Type: 53-unit residential portfolio
- Location: Woodbridge, NJ
- Original Structure: Fannie Mae + Preferred Equity
- Final Structure: Standard Fannie Mae loan
- Loan Amount: $10.7MM
For this deal, it was critical to ensure the borrower hit a specific loan amount by closing, despite the challenges of fluctuating interest rates and their impact on the Debt Service Coverage Ratio (DSCR). To achieve this, we needed a structure that provided flexibility to navigate potential shortfalls and ensure the borrower could secure their required loan amount.
In addition, while agencies rely heavily on the T12, it is also essential for them to understand the story behind the numbers. Every deal is a story, and every property has a history. Communicating the property’s past, its market position, and its future potential was just as critical to moving the deal forward.
We structured the deal with Preferred Equity to safeguard against any potential loan shortfalls caused by market volatility. This allowed the borrower to proceed confidently, knowing they could meet their minimum funding needs regardless of how rates moved before closing.
With this flexibility secured, we focused on building a strong deal narrative. By validating comps, highlighting the property’s history, and showcasing its future market potential, we addressed potential lender concerns before they arose. This approach ensured the underwriting process moved forward without delays or complications.
The deal closed with a $10.7MM streamlined Fannie Mae loan, meeting the borrower’s goals without needing to rely on the Preferred Equity. By addressing potential shortfalls early and crafting a compelling story around the property, we delivered a solution that exceeded expectations.
Preferred Equity can serve dual purposes: helping borrowers achieve higher proceeds or providing a safeguard to ensure they meet a required loan amount, especially in volatile markets.
Agency loans require a deep understanding of the agency process and precise execution to align every component and secure the loan amount borrowers need.
While agencies rely on the T12, crafting a compelling narrative supported by strong comps, the property’s history, and its future potential is critical to building confidence and ensuring success.
Client Take
I was looking for a broker who is energized and willing to hustle to get deals done. With Drew Capital, that’s exactly what you get. You’re in experienced hands, enjoy a diligent and organized process, and always get the promised results.
I had a complicated deal at the closing table that got paused for reasons on the lender’s end. Akiva was there throughout and kept pushing, thinking of alternative approaches and never giving up. With that attitude and work ethic, we were able to get the deal wrapped up — with a better rate.
Sam Garfield, Client
545 East County Line Rd, Suite 18, Lakewood NJ 08701
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