Multi-Commercial Office : Case Study

A client came into Omega financial services after being denied a loan for a multi-property commercial loan. He was interested in purchasing 4 lots in Roselle Park, Nj. These lots had a sell price of 5 Million dollars. The client was interested in purchasing these lots for 6 months now. He has great credit and already has an established portfolio. To his surprise why was he denied twice from two different regulated banks. The banks did not unveil why they denied the investor for the loan, nor did they let him know ahead of time. The time wasted for both parties is unfair and demoralizing for the investor. The client had ready a 2 million down payment and both banks did not approve. The client was referred from a banker from a commercial division of a state bank. When the client came to Omega, he sat down with Mr. Michael who listened to his story and told him that he would find out why he was denied in the first place.

Mr. Michael received all the paperwork from the client and researched the Roselle Property. The records and documents had no faults in them, the reasons for the denials were not his fault at least. Omega had decided to get the four lots appraised, lot 1+2 would be sub divided, the same for 3+4. The result was that lot 4 from FDIC standards had an environmental issue, and that is why the banks denied the loans.

Lot 1+2 had been appraised for a price of 4.5 Million collectively, and 3+4 for 950,000. What Omega decided to do for the client was approve the loan lots one and two for 3 Million and to pay for lot 3+4 950,000 cash, this solution allowed for the investor to take a 3 Million dollar commercial loan and purchase lots 3+4 in cash so they could by pass the environmental issue and fix the problem before construction. 

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