July 24, 2023 – Max Downing, Originator at Largo Capital, Inc. in Orlando, Florida, secured a permanent first mortgage for a cash-out refinance of a 78,658 SF retail property in Melbourne, FL with one of our correspondent Life Insurance Companies. Largo will service this loan in-house, adding to its $3.6B loan portfolio.
In addition to the cash-out, our client [who is a long-term investor] was able to receive a self-amortizing 25-year term with a 25-year amortization, with the interest rate resetting every 5 years. This allows the investor to benefit from potential reductions in interest rates, and have no costs for refinancing for the next 25 years, compared to the majority of commercial real estate mortgages that typically have 5 to 10-year terms with balloon payments and other transaction costs [third-parties, legal fees, origination fees, etc.]
There was also no requirement for wind insurance which in the Florida market can save potentially hundreds of thousands in cash flow annually as many carriers have either left the market or tripled their premiums.
Call now to learn about our correspondent Life Insurance programs and where interest rates are today for your property.