CASE STUDY | TIMING

 

$1.5 Million Cash Needed in 48 Hours

98-Unit Apartment Community | Orange County, CA

 

 

 

 

 

 

 

Lending Challenge:

 

  • Client sold his 98-unit apartment community which was in escrow and due to close in 2 days on a 1031 exchange.

 

  • Client required $1,500,000 additional cash to complete the 1031 exchange but did not have the cash available.

 

  • Client needed the $1,500,000 cash in 2 days or the escrow would cancel.

 

  • The 98-unit apartment community was valued at $28,500,000 and had an existing $14,000,000 1st trust deed in place.

 

Testa Capital Group Solution:

 

  • Visited the 98-unit apartment community and met the client the same day.

 

  • Issued a loan term sheet the same day for a new $1,500,000 2nd trust deed loan.

 

  • Completed and signed loan docs on the morning of day 2.

 

  • Funded $1,500,000 on day 2 and completed same day special recording of the deed of trust, closing the escrow on time.

 

  • Due to successful performance, client had Testa Capital Group complete an additional $20+ million on several additional properties in his portfolio.