Investment Property Capital Arranges Net Leased Financing after Local Banks Turned it Down.

IPC recently received an assignment to obtain permanent financing for the acquisition of a stand-alone, net leased property.  The buyers are located in the San Francisco Bay Area, and found a NNN Leased Family Dollar Store providing a nice cap rate return in Ohio.  They initially sought financing on their own, and applied to several banks local to the property.  However, they were turned away not because of their personal finances, not because of their credit, and not because the bankers thought this was a bad investment. On the contrary:  The buyers make a lot of money, have excellent credit, and the property has wonderful cash flow.  So what was the problem?

Oddly, the local bankers did not want to lend to these good people because they had no other connection to the area the property is in.  Effectively they were discriminated against because they are out-of-state investors.

A trusted referral partner recommended IPC, and we quickly identified a national lender who loved the deal.  From application to closing, all parties worked tirelessly to make this purchase happen, and I am pleased to report that the buyers are now owners, and are enjoying a healthy cap rate return on a corporate guaranteed lease.  The loan is fixed for 5 years at 4.20% and no prepay penalty, and has a 10 year maturity.

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