Northern California Multi-Unit Rental Property Purchase With A Complex Income Structure.

The Client

A self-employed real estate investor with a British passport living in Hong Kong. He owned and managed a small boutique investment firm and wanted to diversify his holding in U.S. real estate.

How We Helped

A self-employed real estate investor with a British passport living in Hong Kong. He owned and managed a small boutique investment firm and wanted to diversify his holding in U.S. real estate.

The client needed to raise capital to purchase the three-unit property. To raise the money, the client wanted to refinance/cash out their existing 4 bedroom beachfront rental property lowering their current rate for a 5 year ARM, which was maturing in 6 months and get into a lower rate fixed mortgage.

The main challenge we had with this case was that the client had a complicated income stream. The business’s income was extremely “lumpy,” and although the total earned income was high, the consistency was sporadic. This made the accounts challenging to interpret and, in turn, created a three month dragged out mortgage experience with a well-known international bank for it to be declined eventually.

Although the clients’ business was very niche in his field, he had been running this successful firm for over a decade with an exceedingly good accounts track record. We were able to highlight the stable business history to the lender and structure the income documentation clearly and precisely to satisfy the lender. The lender subsequently released the equity portion from their other property and approved the loan on their new purchase.

Loan Details

Nationality	Property Value	Loan Amount	LTV	Rate
U.K. Citizen	$950,000	$475,000	50%	4.875%

Term	Address	Property Type	Purpose	Loan Type
5/1 ARM	Seattle, Washington	Single-Family Home	Refinance	Residential