All Forum Posts by: Marty Johnston

@Nolan Gottlieb Ill echo the other's here to inquire on the difficulties securing financing for this one, everything you're listing here seems okay. Would also be curious in knowing which lenders you've approached so far for financing?

Would love to chat more! Sent you a DM

@Robert Ellis I do have Build to Rent Revolvers/Lines of Credit for builders available in certain markets up to 100% LTC / 70% ARV, up to $5M (on revolvers), 5-yr draw period., priced at Prime + 1.75% (deferred interest payments available), same day draws etc = all very much depending on experience, liquidity, credit, etc.

Other new construction options from 85-90% LTC / 70-75% ARV on single-asset, PUDs, Multifamily, etc also dependent on market (no tertiary / rural markets), experience, etc.

Shoot me an email at [email protected] or give me a call/txt at 414-600-0123 to discuss and if you have a project in mind I'll work on pricing for you!

Marty Johnston  |  414-600-0123 (call/txt)  |  [email protected]  |  www.macofinancial.com

@Khemraj Sarju Jr. DM'd, interested in understanding the underwriting guidelines on 'income' and 'cash flow', are you look at W2s, Tax Returns, 12-mos bank statements, etc? 

Thanks!

DM sent @AJ Wong ! Look forward to connecting

90% LTC Financing for Self-Storage

This program is getting aggressive on Self Storage value add and Ground Up Construction! DM, Email, or call to discuss your project. (414) 600-0123 | [email protected]

Apply in 5 minutes for quotes in 24-hours >> www.macofinancial.com/apply

Ground-up Construction, Acquisition, and Reno / Value- Add
3-6 week Closing
$2,000,000 - $25,000,000 Loan Amounts
Up to 90% LTC
Up to 70% LTV
SOFR +600-750 (*Fixed Rate Available w/ 1 Point at Close)
2 Lender Origination Points
Up to 5 years w/ Step-down to SOFR +450 After Construction
Self-storage (*Third Party REIT Management Required)
US, Nationwide
Recourse, non-recourse w/ Completion, Interest Carry & Bad Boy Carve-Out Guarantees
9 Months Minimum Earned Interest
10-20% Post Closing Liquidity Required


(414) 600-0123
[email protected]
11220 W Burleigh St Suite 100
Wauwatosa, WI 53222

 Junior,

You haves some options here! Private Money all the way, as the big-boys who lend nationally will all have the same population issues you've been running into. GA is a good state for your goals though, so you should be able to get this done👍

Sent you a DM to see if I can help!

 William,

You may have already secured this funding, but there are a number of options for you here depending on location. "almost ready" is great timing to start working on quotes. How 'close' are you on getting close to that 80-90% occupancy at the moment?

Others have said it, I'll echo it - DSCR is exactly the solution to your problem! Credit, DSCR / cashflow, and location/type of property will all determine your max rates and leverage here. DSCR loans don't consider DTI at all.

Now the HELOC option will likely be your most cost effective, and best product. If you own one free and clear, and it cash flows well, you could even potentially obtain a LOC against the investment property, but LOCs on Investment properties are harder to come by, and usually are offered at local or regional banks and credit unions << These same sources often times do NOT also offer the DSCR, but look more at the traditional DTI route. So it'll take some number crunching. (though it seems you may have already done this)

In short, HELOC would be your cheapest route, no doubt, but DSCR is your perfect backup plan.

As a third option, if your property cash flows well enough, you may also be able to look at a 'cash flow advance, this is a niche program that is an unsecured advance against your cashflows. No liens, no appraisals, no out of pocket costs, and no reporting to personal or business credit. quick 1 week closes usually. Great option but requires existing stabilized cash flow (must be 'landlord' rental-type income, not business income such as sales) from your other SREO to make it happen.

DM me if interested in discussing options or chatting more about this!

@Nick Versetto you're not wrong, capital markets the past 18-24 months have really tightened up. Pre-Covid especially, leverage was high and more or less shut down over night and many lenders sank back into their shells.

Markets are slowly improving again, but not where we were. 

To answer your question, there are a number of lenders who offer 100% LTC, but most of those lenders are only in certain markets. I see you're in Chicago-land, which others here may have different experience then me, but I've found it very difficult to secure 100% LTC financing in IL. Particularly Cook County where many lenders reduce leverage as the laws there make it very difficult to foreclose.

Where I've seen highest leverage in IL is through a 90/100, and utilizing either:

1. Cross-collateralization from othe properties to have 0.00% out of pocket (which is actually 'lower' leverage to the lender in these case)

2. Utilizing unsecured debt for the remaining equity (10% plus closing costs + reserves) < this option looks at personal income, DTI, and credit (min score 700 to get best terms).

3. Obtaining a cash flow advance against an existing portfolio/properties cash flow < this is a niche program that is an unsecured advance against your cashflows. No liens, no appraisals, no out of pocket costs, and no reporting to personal or business credit. Great option but requires existing stabilized cash flow (must be 'landlord' rental-type income, not business income such as sales) from your other SREO to make it happen.

Feel free to DM me if interested in chatting more about this. 👍

 Jon,

It's not impossible with the right lender, if title is done, appraisal is done and lender can get it transfered (or doesn't require a transfer), and its teed up and clear-cut. Don't expect cheap capital though on something this quick unfortunately. We'd need a little more info on the deal though. 

DM me if you don't have a solution for this yet. 👍