All Forum Posts by: Marty Johnston

Hey @Darbie Cook there are hard money lenders who will finance as low as $75,000, but fees and costs sky-rocket as you hit minimum origination fees, so from a % standpoint, fees look really high. Feel free to DM me if interested in chatting more about this.

@Oscar Padilla there are hard money lenders who have no minimum loan amounts, but they get really expensive! If the numbers are strong and you're open to mid-teen rates and 5+ pts total / combined with minimum origination fees, you have options - feel free to DM me if that's of interest

Jose,
There are also 100% LTC financing options depending on the market, even for first time investors, not to exceed 70-75% ARV. Can you provide more details on where the property is located, purchase price, rehab amount, ARV, etc? Otherwise, assuming good credit score, 85-90% of purchase + 100% of rehab funded in draws is typical.

I don't know this group specifically - haven't heard of them. But this sounds to me like it may be in line with a Cash Flow Advance Program that's available. Basically you can get a loan that's underwritten based on a property's NET Cashflow (after debt service and all other expenses per a T-12 P&L, or in other words, REAL world cash flow), and based on that, obtain an unsecured loan against it. No Personal income, credit, or other required. Terms are usually 5-10 years fully amortizing in the low-mid teen's on average.

They are basically taking a pledge against your future cash flows, similar to an MCA, but with rates from 11-16% fully amortizing on 5-10 yr terms, so payments are not nearly as ugly as an MCA, but similar concept.

If they're a TPO or Broker for the same company, the program could be real. But unfortunately not enough here to know for sure!

Understood @Craig Jones, that makes sense! I cant assist on loans in CA directly as I'm not licensed in CA, however I'd be happy to send over some referrals to some lenders who I'd normally approach for this project for you. Feel free to shoot me a DM!

@Craig Jones - Lots to unpack here! Mid-construction has some struggles with many lenders in our current capital markets, though there are options! Some will tell you "On Title, or no experience", thankfully, there are some lenders who WILL consider GC experience if we can validate with permits pulled on similar addresses/projects - this would be part of the underwriting process. Expect financing anywhere from 80-90% of Purchase, 100% of rehab (funded in draws), up to 85-90% LTC.

Your best bet is getting it in front of a number of lenders efficiently to see who all the 'real players' are for you in this scenario. Not sure where the property is located, but looks like perhaps San Fran (?)

Separately, if your company is interested in considering as a whole, you can also obtain financing against your GC Fee Contracts outstanding, via an advance against the future cashflows owed to your business. (NOT an MCA - 5-yr terms, fully amortizing, no prepayment penalties etc). This might help you with the liquidity you need to fund the deal as well depending on what your outstanding GC Fee Agreements look like.

Food for thought!

Hey @Chris Kersey a good problem to have by the sounds of it! You may have a couple options available to you.

1. Increase leverage on your Construction Financing for your new builds. (depending on your current financing, the limit is going to range up to 90% LTC in most cases)

2. Leverage JV/Equity/Mezz on your projects, either by leveraging the existing properties and cashflow, and putting a second on those, or bringing on the JV/Mezz financing on the New Acquisitions/new builds

Alternatively, finding another private investor locally to you who has additional capital or other offerings to help you scale could be the ticket as well! All depends on your goal.

Happy to chat on the #1 and #2 above if interested, feel free to DM me!

@Eugene Lindsey Others have listed a number of potential options for you. Depending on how many completed new builds we can verify on title for you along with credit, you could obtain up to 90% LTC / 70-75% ARV on this including a 5% Interest Reserve.

If interested, shoot me a DM or email me, happy to help to discuss!

You're in similar spot to many! But you have many options based on what you've provided here. Next it will all come down to the numbers for the deal to really confirm 80%-90% LTC/LTV on purchase, 100% of rehab (funded in draws) not to exceed 65-75% ARV (depending on the lender, most are 70-75% ARV) Kiavi is a great lender, but it comes at no surprise as their internal credit analysis throws me for a loop sometimes (and shocks me, as very qualified borrowers sometimes still don't make it through that analysis)

In short, you simply need to connect with the right lenders and each will have varying rates, costs, fees, etc

Bill Fay referenced the Hard Money Lenders link here on BP which is a great direct resource! Feel free to shoot me an DM if interested in discussing further.

@Logan Zanki would love to look at this with you. I do SBA financing for both the 7(a) and 504. Looks doable, even as a startup! Would love to take a deeper dive with you.

Sending you a DM to discuss.