Creativity with Client Financing Solutions
“FirstService Financial listened to our needs and tailored a financial product that met those needs,” says the Board President of 200+ unit cooperative on Manhattan’s East Side. “I would highly recommend FFI as they kept our goals in mind and offered a creative solution to address our immediate and long-term capital requirements.”
Having recently commenced a review of potential future capital repairs and equipment replacements, the Board began discussions with FirstService as to how best to obtain funds to pay for these potential projects.
FFI analyzed the existing loan to identify the prepayment penalty the Board would face if they refinanced. Calculated at roughly $1 million, it was apparent that it was cost prohibitive to refinance the first mortgage.
Over the next several months, the Board and FFI engaged in numerous discussions on alternative financing solutions that would meet the immediate and long-term needs of the building.
FFI suggested securing a substantial revolving line of credit (LOC) that would offer the building immediate, flexible funding. Although the LOC had a variable interest rate, it would allow the building to draw capital for current projects and be able to repay the principal balance, if possible, during the life of the loan without any penalty.
FFI was able to negotiate favorable terms for the LOC and substantially reduce the security deposit the bank originally required. The LOC closed in April 2015 and the cooperative has already begun utilizing it.
|On behalf of a 200+ unit cooperative on Manhattan’s East Side, FFI:|
|√ Negotiated a multi-million dollar revolving line of credit that offered the co-op flexibility with no prepayment penalty|
|√ Assisted the co-op in developing a strategy to reduce long term debt and plan for possible future capital expenditures|
|√ Closed the line of credit 90 days after application|
To learn how FFI’s programs may benefit your property, please contact Jordan Muchnick at (484) 398-6042 or firstname.lastname@example.org.