Dealers may stay in their real estate for generations, but their loans do not. The average commercial property loan is 5-7 years. Every 5-7 years a car dealer is facing current interest rates and LTV’s.

Example Scenario:

• Dealer has 3% property loan expiring at an underappraised $20 Mil valuation.
• Dealer is facing a refinance at 70% LTV with a 7.5% interest rate.
• Dealer has $6 Mil + in trapped equity and a significantly higher mortgage cost.

Solution:

• Legacy acquires the real estate at or above $20 Mil valuation
• Dealer has zero trapped equity and can gain proceeds at Settlement
• Dealer converts the mortgage to rent and lowers their monthly cost