All Forum Posts by: Darryl Dahlen

My personal favorites involve ultra secret, invitation only, trade platforms where you can invest money and receive 10X the amount back in 30 days.

I too am interested in this open offer and what it is all about.

Jon offers some great advice. Since you used the word "project", I'll take some liberty and assume you are talking about non-residential endeavor. I.E. Commercial.

Be very careful of anyone who claims to be able to help you as 2nd are near impossible to in the commercial arena. When they are possible, it is usually on a property where the borrower has owned it long enough to give the lender a measure of comfort.

That, and most lenders are simply not comfortable these days going behind a larger 1st in this market. Too much risk with evaporating values and NOIs.

Still, you can seek out owner financing, a JV/equity, LOC on another property, using another property as pledged collateral, stock/mutual fund loan, etc. to find the money you need.

Jon covered a lot of those options, but they were good enough to mention again.

Todd, I sent you an email with some lenders you can reach out to, but I can almost guarantee you none of them will come close to the 85% LTV you have been offered.

The good thing, or I should say one of the many good things about credit unions is compared to most banks they are private business so they can do what they want with their money. No shareholders to answer to.

That is a great offer, but it won't hurt you to make a couple calls so that can confirm that it is.

Best of luck!

Todd, if you are cashing out equity and not re-investing the money back into the property it doesn't really matter to a lender what you are using the money for. The bottom line is you are increasing their risk by increasing the overall loan to value. I don't know if that is a deal killer, but I suspect it will be.

That being said, I have a couple hard money lenders I can pass on to you to call, and one conventional lender. They do blanket loans and have a good reputation.

If you want conventional financing, I think you need to smile and dial some credit unions and portfolio banks. They would most likely want you to move all of your accounts with them, but that's normal nowadays.

Email me if you want the contact info of the lenders I mentioned.

Hypothetically, you could obtain a blanket loan against your SFRs, but finding a lender to do one is harder than it used to be, and the cash-out component is going to be a hard sell.
Still, nothing is easy these days and nothing ventured nothing gained right?
If EACH property has an LTV below 65% and has good stable tenants in place then you may want to see if you can get a hard money lender to allow for a cash-out refi, let the loan season, and flip into conventional financing.
The trick will be to find the end-lender first so you have some semblance of an exit strategy for your hard money loan so look up some portfolio lenders in your area.

The location will take some selling, but I have a program I've developed with a lender specifically for this very sort of venture.

The program is a hard money revolving line of credit where you serve as the guarantor for the loan so it can remain open, and the property serves to really only provide a first lien position.

You must be able to show a track record of moving properties (this is not for startups), have a sound exit strategy so that you can pay down the LOC. Ideally, one would use the LOC to purchase the properties and use their own funds to do any rehab work.

Typical terms are:

Rate: 9-14% I/O paid every month whether you use the money or not
Points: 4-6 lender points (paid from loan proceeds)
LOC amount: 250K-2M
Term: 1 year with renewals and increases available

This program has been met with a lot of interest and we have successfully closed deals under this program. The lender is based out of Atlanta, GA and has been in business for 20+ years.

If you think this is something you could use, please email me and I will contact you.

Good input Bill.

When I mentioned that having a government agency as a tenant could be a double edged sword it was because I had a deal where the one and only tenant was the Social Security administration. The lender is one the one who liked, and disliked, them as a tenant for the reasons I mentioned.

Granted, I think the risk of any such tenant defaulting, or breaking, a lease would be small, but I thought it was worth passing on.

Office buildings are not exactly viewed as desirable properties right now given their poor performance and the glut of inventory in most markets.

That being said, if the financials are historically stable, and strong, you can obtain financing on an office building through conventional means (banks).

A lender will look at who the tenant(s) are, they type of lease in place (N,NN, NNN), and the remaining time on that lease. They will also look at the lease itself in order to see what the exit/default clauses are along with any provisions for renewals/extensions.

A lender will also look at who the tenant is. Obviously, a name brand anchor is much more desirable than a start up company. To that end, having a tenant that is the government is a plus AND a minus.

The plus is that the lender can safely count on the rent being paid each month. The minus is that if the government wants to break the lease due to budget cuts, re-alignment, etc., it can, and will, and there isn't much anyone can do about it.

To answer your question, the lease cannot be monetized. It is a contract between landlord and tenant for a rented space that is already collateralized by the 1st position senior debt lender.

Since you didn't offer much in the way of details, I'd hate to speculate what you could expect in terms of financing. Still, I think you'd be very lucky if you found a lender who would offer an LTV of 70-75%.

From a financing perspective, these are best financed by SBA loans since car washes are special purpose properties. That means most lenders shy away from them or counter their uniqueness by offering lower LTVs (50-70%).