Client overview
Client Situation Overview
John Doe, a real estate investor based in Montreal, Quebec, owns a portfolio valued at $5,000,000. His total available equity was $900,000 after considering existing financing.
Challenges Faced
John wanted to acquire a new multi-family building in a high-growth area while maximizing the use of his available equity.
Client Profile
Name: John Doe
Age: 46
Industry/Occupation: Real Estate Investor
Location and Address: Montreal, Quebec
Age: 46
Industry/Occupation: Real Estate Investor
Location and Address: Montreal, Quebec
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Financial and Lending Details
Loan Purpose and Goals:
Purpose of the Loan
Financing the acquisition and renovation of a multi-family building
Client's Goals
John aimed to secure 100% financing for a new property and to maximize available equity for renovations.
Expected Benefits
John expected to increase the value of the newly acquired building by improving its cap rate through strategic renovations.
Credit and Financial Health:
Credit Score
735
Credit History
John had adequate credit to qualify for the pre-approved budget.
Monthly Income
$8,700
Financial and Property Details:
Portfolio Value
$2,150,000.
Loan-to-Value (LTV) Ratio
1st Rank Mortgage: 70% LTV on the purchased property
Current Condition of Property
Property required renovations to maximize value and increase rental income.
Appraised Value
$2,177,000.
Existing Debts and Obligations
Current existing financing: $2,350,000
Other Funding Sources
$900,000 (from other properties' equity)
Lending Solution
Lending Strategy and Loan Details
Amount Financed
$2,500,000
Repayment Plan
Repayment through increased rental income and refinance strategy post-renovations.
Loan Term
9 months.
Interest Rate
11.25%
Monthly Payment Amount
$23,437.5
Return on Investment (ROI)
Significant return due to an increase in cap rate from 4.5% to 7%.
Implementation Process
Approval Process Steps
Pre-approval for $2,500,000, financing 100% of the purchase, and progressive disbursements for renovations.
Funding Timeline
Funding was completed in 5 days to acquire the property, with progressive disbursements for renovations.
Customized Solutions
100% financing structured with a 1st rank mortgage for the purchase and a 2nd rank mortgage leveraging equity from existing properties.
Results and Impact
Results achieved
Products used: 1st Rank Mortgage – $1.5 million on the purchased property (70% LTV)
2nd Rank Mortgage – $900,000 secured across other properties for renovations and remaining purchase amount.
Apply Now!2nd Rank Mortgage – $900,000 secured across other properties for renovations and remaining purchase amount.
Achievement of Client Goals
John successfully acquired the property, completed renovations, and significantly increased the property's value and rental income.
Impact on Financial Position
John's financial position improved due to increased property value and rental income from strategic improvements.
Conclusion
Let's recap
John acquired the property with 100% financing, renovated it, and increased the cap rate from 4.5% to 7%, significantly boosting property value and rental income.
Our tailored financing solutions helped John maximize his investment by leveraging available equity and providing 100% financing for both acquisition and renovations.
Our tailored financing solutions helped John maximize his investment by leveraging available equity and providing 100% financing for both acquisition and renovations.
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