• Nadlan Capital Group – USA Real Estate Financing for Foreign Nationals and Residents

  Case Study: Loan 1361 – Yasmine & Ohad – Refinance with Cash-Out – Tennessee

  Posted by Nadlan Group on June 27 at 16:48

  🏠 Case Study: Loan 1361 – Yasmine & Ohad – Refinance with Cash-Out – Tennessee

  Lender: 2488
  Loan Type: DSCR Refinance with Cash-Out
  Status: Final Stage – Closing

  🔹 Background

  Yasmine and Ohad, experienced real estate investors, were refinancing a property in Tennessee under an LLC structure to pull out equity and optimize long-term cash flow. The loan process began smoothly with timely appraisal, underwriting, and title coordination. Both borrowers were proactive in communication and documentation.

  🔹 The Situation

  Just before closing, the lender introduced a standard collateral assignment document, requesting it be signed by the property management company (Advantage Property Management), which oversees rent collection and tenant management on the property.

  This sparked frustration from Ohad, who raised the following objections:

  • The management company does not make financial decisions.

  • This request was not presented earlier.

  • He had never encountered such a requirement in past deals.

  • There was concern the process could delay closing or incur additional costs.

  🔹 Why Was the Property Manager’s Signature Required?

  Reason from the lender’s side:

  The collateral agreement the lender requested is designed to protect their interest in the event of loan default. Specifically:

  • It authorizes the lender to collect rents directly from the property manager if the borrower stops making payments.

  • It is common in DSCR loans, especially when a third-party manager is involved.

  • This does not give the lender control unless default occurs—it merely sets up a mechanism for rent redirection if needed.

  Legal and compliance perspective:

  • The underwriter needs assurance that they can access the income stream securing the loan (rents) if required.

  • This clause is not unusual in commercial lending or investor property loans where cash flow is the collateral.

  🔹 Borrower Concerns and Resolution

  Ohad expressed legitimate concerns about:

  • Process delays

  • Unclear expectations

  • Lack of familiarity with this specific document

  We responded quickly by:

  • Offering to waive the requirement by certifying the property as self-managed under Ohad’s oversight (since he resides in the U.S.)

  • Coordinating directly with the title and underwriting team to revise the documentation accordingly

  • Ensuring closing continued smoothly without requiring further action from the property management company

  🔹 Takeaways

  1. Clear Communication: Explaining early why certain documents might be needed helps reduce friction.

  2. Lender Flexibility: In many cases, lenders allow alternatives—such as borrower management certification—instead of third-party PM involvement.

  3. Process Transparency: While some requests may feel excessive, they are often rooted in compliance, not complication.

  4. Client Advocacy: Nadlan Capital Group stepped in immediately to advocate for the client, working around the roadblock without jeopardizing funding.

  Nadlan Group replied 2 weeks, 2 days ago 1 Member · 0 Replies

  • Collateral
  • DSCR Loans
  • Property Manager
  • Self-Managed
• 0 Replies

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