Broker Scenario #1
Problem:Client is looking to purchase a piece of land and build a home. The purchase price of the land was $60,000, and the client had $30,000 to put towards the purchase. The clients were turned down by the banks.
Graysbrook Capital Solution: The broker called to see if there was any hope in helping these clients and was very surprised when we said yes we can do something for them. We advised we would look at doing a 4 draw structure. Below is what we looked at doing for the client.
$ 380,000 value once complete x 70% LTV = $ 266,000 total mortgage amount
$ 266,000 – 20,000 (fees approx. lender, Broker, legal) = $ 246,000 available to the client
Draw 1: $ 30,000 Goes towards purchase of land
Draw 2: $ 72,000 Weather tight
Draw 3: $ 72,000 Gyprock Ready
Draw 4: $ 72,000 Completion (Occupancy permit)
** client hired an experienced contractor to build the home **
Broker Benefit:The broker was able to close a deal that was declined everywhere else.
Broker Scenario #2
Multi Unit Construction
Problem: Builder contacted a mortgage broker asking it he could get him approved to purchase a piece of land that he is able to get a great deal on so he can look at building a 6 unit. He was not able to get approved anywhere. The client owns several properties, all which have mortgages on them around 55-60% LTV. Seeing that there is equity in most of his building we ended up doing a blanket mortgage on several of his properties and gave him the funds to purchase the land and to build the units.
Graysbrook Capital Solution: The broker brought the deal to us and we paid out the 1st mortgage and gave them the money for the renovations and added in their monthly payment into the mortgage.
Broker Benefit: Clients used the broker for the purchase of the next home.