I had a chance to visit with a new client today (courtesy of the Royal Bank) who was looking to purchase a mixed use property in rural Alberta. The property has a commercial component and a residential component. Tenants have been found and will be in place later this month – income to service the debt in place. The client has to close at the end of this month and came to see me knowing that he had limited options.
Traditional banks can take weeks to close a file and if the transaction is too small it can take even longer. In this case closing this transaction with the bank is not going to happen so we will use private funds to close the transaction and then over the next month or so work with a credit union to replace the private financing. I advised the client that for the cost of the private financing he could ask the vendor to extend the closing date for a non refundable payment however he advised that the vendor was very motivated to sell and the price of the property was still worth paying the fees and interest on a private mortgage.
Good credit score, strong net worth and simply needs to get a deal done and the bank can’t help…right now.