Bison Arranges Massive Cash Out Event on Scattered Site Rental Housing Portfolio

By David Repka

Bison Financial Group has arranged a non-recourse loan with massive cash out to refinance a portfolio of single-family and small multifamily properties located in West Central Florida. house-porches

Overview:

  • 220+ rental units
  • Most of the properties are rented via the Section 8 program
  • Non-recourse, fixed rate loan underwritten at 65% LTV; 10-year term; 30-year amortization; 1.15 DCR; rate in the low 6’s
  • Borrower wanted to refinance the portfolio based on current valuations in order to extract significant capital to reinvest in more properties
  • No limit on cash out or how proceeds are invested
  • Leverage of up to 75% was offered, but borrower chose lower leverage option

Challenges:

  • Single-family, duplex, tri-plex, quad-plex and multi-unit rental properties scattered through multiple Florida Counties
  • The majority of the properties are rented to Section 8 tenants
  • Borrower consisted of several different family entites that needed to be brought together as a cohesive team to earn the lowest possible fixed rate
  • Coordination of appraisals, lien searches, building code violations, zoning, surveys, legal, etc. on very large collateral pool

Solution:

  • Bison was engaged on an exclusive basis to secure a new loan at the best blend of rate and terms
  • Bison surveyed the market and secured a new lender able to get comfortable with the locations, sponsors and backstory to structure a loan to mitigate any challenges and drama
  • Loan successfully closed and funded
  • Lender has offered non-recouse acquisition line of credit to borrower for up to 80% of cost to fund new purchases

Click to learn more about:
Bison’s financing solutions for scattered site residential real estate investors.