All Forum Posts by: Marty Johnston

 DM sent

 William,

A great problem to have! A couple questions that may help me, help you, with some options:

1. Do you sell or hold these apartments your developing?

2. If hold - I would presume (never good) most of the existing complexes are stabilized and cash flow positive?

3. What are the current terms of your existing financing? There may be higher leverage options, or through a combination of Pref Equity (if willing to entertain)

4. Do you have any Developer Fees with other entities (outside of your own) that you receive a monthly installment for? (this can be leveraged as well)

The reason behind each question would mean a different option. Thanks!

Alternatively, if the property cash flows well enough, you could also look at an advance against your monthly net rental income. How much do you cash flow per month on the LLC that owns this property?

@Susan Tan you may also have lending options in the Houston area that offer 100% LTC financing for rehab projects. You'll still need some liquidity for reserves and to be reimbursed for work completed in draws, however its usually limited to 10-20% of the rehab budget needed in reserves to make the deal work.

You're welcome to DM for more details if interested. 👍 Good luck!

This program is gaining a lot of traction! Very unique, very flexible, very quick. Quotes in 24-48 hrs and funding in 5-7 business days.

Borrower against your net cash flow for your rental property or portfolio without any liens against your property. Works great as an alternative to a cash out refinance (if you're in low-cost debt at the moment and don't want to give that up in this higher interest rate environment) or if you're having a hard time obtaining a 2nd mortgage. This is NOT a mortgage, as there are no liens against the property - it's an advance against your Net Cash Flow.

For Developers** This program also lends against Developer Fees you may have in place, lending against your Developer Agreement's monthly installment. Schedule meeting below to discuss!

More Info >>https://www.macofinancial.com/cash-flow-advance
FAQs here >> https://www.macofinancial.com/cash-flow-advance-faqs
Application* >> Cash Flow Advance  |  Get a Quote 
*Apply in 3-5 minutes, no hard credit pulls, quotes in 24-48 hrs, Need a T-12 P&L breaking down net cash flow monthly, including debt service*
**Broker Friendly, but call to discuss

I suggest a zoom or phone call to discuss, I'd love to learn more about your situation! 
Schedule Meeting >> Schedule a Meeting  |  Marty Johnston

TERMS & STRUCTURE
1 - 5 Year Terms (Depending on when your current note balloons)
$75,000 - $2M
10-16% Annualized (11-13% in most cases)
No prepayment penalties (though, generally 3 months payments required)
Cash Flow Assignment
3 Mos Reserves Desired
Most property types considered (lending against the cash flow, not collateralizing the property)

BENEFITS
7 Day Close
Keep Your Equity!
No Upfront or out of pocket Fees (all paid from proceeds)
No Balloon Payments
Flexible Capital
Amortizing Monthly Payments
No Impact to Credit or DTI (Doesn't report to personal OR business credit)
Performance Based on historical rents
No liens on properties
No trade lines on credits

USE CASES
Purchase additional properties
Rehab or rehab completion
New Construction
Cover closing costs
Company buy-in
Partner buy-out
CAPEX costs
Down Payment Assistance
Mergers & Acquisitions
Furniture, Design, Supplies
Renovations & CAPEX
Hiring and Growth Needs
Refinancing High-Cost Debt

Marty Johnston, Principal
(414) 600-0123 (Call or Text)
[email protected]
www.macofinancial.com
11220 W Burleigh St STE 100
Wauwatosa, WI 53222

 Hey Aaron,

You have options here depending on a few factors. This is a Hard Money Loan with no minimum credit score requirements. You may also have alternative solutions if you own other cash flowing real estate where you could 'pledge the future cash flow' to obtain a loan against it. No pre payment penalties, no appraisals, no liens, no minimum credit score, no reporting to credit (biz or personal) - that route obviously requires other cash flowing real estate (ANY cash flowing rental income will do - residential, commercial, MHP, etc). If you're a developer, you could get an advance against your developer fee as well.

The simplest would be a hard money loan and your equity in the deal could contribute. Looks like this deal is in Fort Lauderdale, which is a good market for most HMLs, it will all come down to how the numbers pencil out. (ARV caps will be between 65-75% ARV)

Just shot you a DM - happy to help if I can!

@Carlos Handler you have good responses here below and may be passing on this particular transaction, however another option I may add that has been a great alternative to a "2nd mortgage" and without giving up any equity is a Cash Flow Advance loan. This is a newer niche program that allows you to borrower against your "net cash flow" after debt service. This is NOT a loan against the property - no liens on the property, no appraisals, no reporting to your business or personal credit etc. 

Obviously this only works if you own other cash flowing real estate (residential, commercial, MHPs - anything with consistent rental income), but may be a great alternative to giving up any equity, and since 2nd mortgages are really tough to come by at the desired terms - could be a great outlet.

DM me if you're interested to discuss this further. 👍

 Hey Brandon,

You may have this financing locked up with the different DMs flown in here. If you'd like a few more quotes to see what's competitive, let me know! I have a number of sources for rehab, bridge, perm, or ground up in your market.

Merry Christmas!

@Andria Kobylinski congrats on your venture into hospitality!

Its great that the seller is will to carry a note in a seller 2nd as well, that will help reduce your require monthly payment with the right lenders. Some/many lenders don't like a 2nd mortgage behind their first (like the skin in the game), however there are both bridge or permanent financing options out there allowing you to leverage anywhere from 90% CLTV - 100% CLTV, but don't expect good terms... Many of these lenders allowing 2nds behind them are more expensive capital (10's - 13's in our current market [high rates - but now showing signs of coming down]). If the property can service the debt at 90% leverage between a senior 1st and the seller second, you're looking at a good investment!

Feel free to DM me if interested in discussing more, would be happy to assist.

@Brandon Stiles The reference to a "Purchase Mortgage" meaning a financing a property on a purchase transaction - not seller financing necessarily.