The Madison Group (TMG), a leading source of multi-family financing nationwide, arranged a cash out refinance loan of $19,440,000 on a multi-family portfolio that consisted of 10 properties and 429 units. The repeat clients came to TMG requesting a cash out refinance loan above their total cost basis.
TMG worked hard to find a lender that would provide a cash out refinance loan above the client’s cost basis. The lender was able to structure a $17.25 million advance on day one with an earnout of $2.19 million. The lender also provided three years of interest only payments with no prepayment penalty. The clients were able to secure a large portion of cash out proceeds and are looking for additional multi-family properties to purchase.
Location: Arkansas
Loan amount: $19,440,000
LTV/LTC: 75%
Term: 10 years
Rate: 5yr fixed - 6.50%
Amortization: 3-years of I/O – followed by 30-year amortization
Prepayment: None