After a client sold her rental building in San Francisco, she needed to buy another property to avoid paying taxes, while using 1031 Tax Deferred Exchange. When we met, I explained to her that after we will find a lender with the best option, we would have to charge an extra 1% from the loan amount for our services in addition to the bank fees. She hesitated and later on informed me that she is keeping her money at CHASE bank and can apply with them directly since this can save her $30,000.
Fortunately for her and for us, her real estate agent with whom we have a working relationship, convinced her to give us a chance.
We submitted her loan request to 5 different banks–including CHASE. After all of them gave us different quotes, we narrowed it down to CHASE and Wells Fargo. After negotiating back and forth, where each bank wanted to receive the business, Wells Fargo agreed to lower their interest rate to 3.75% and CHASE (as well as other banks) informed us that they cannot lend on the subject property.
If the client would have applied for the loan with her bank, she would have lost the transaction and have to pay taxes.
Whom do you know that might benefit from our tailored mortgage solutions?
Don’t forget to participate in this month’s Cheesecake Special.
SMILE AND PLEASE SHARE IT WITH A FRIEND