01
The transaction
The borrower contracted to buy a Boca Raton residence for $3.5 million three years before completion. At closing, the completed property was estimated to be worth about $7 million.
Featured case study
$3.5M+ acquisition financing: Boca Raton residence
Full purchase-price financing, closing costs, and reserves for a completed Boca Raton residence with substantial embedded equity.
- Purchase-price financing
- $3,500,000
- Contract price
- $3,500,000
- Estimated value at closing
- Approximately $7,000,000
- Additional proceeds
- Closing costs and reserves
- Asset
- New-construction residence, Boca Raton
02
The challenge
The borrower needed the full $3.5 million purchase price. Viewed only against cost, the request looked like 100% financing—outside Matchpoint’s typical structure.
03
Matchpoint’s analysis
We considered the purchase price and the property’s estimated value at closing. The three year old contract had created substantial equity, so the $3.5 million request was supported by the current collateral value.
04
The structure
Matchpoint financed the full $3.5 million purchase price, covered closing costs, and provided additional reserves. Total proceeds exceeded the contract price while remaining supported by the substantially higher estimated collateral value.
05
Execution
We structured the loan around the property’s current value and the borrower’s existing equity. The acquisition closed without a new cash contribution toward the purchase price.
The result
We financed the full $3.5 million purchase price, closing costs, and reserves. The loan remained supported by the property’s estimated value at closing.
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