Lucky? What has luck got to do with it? - Posted by Paul Macdonald
Posted by Paul Macdonald on November 09, 2000 at 20:50:12:
It takes hard work to have good credit. And questions about income and other such “crap” is how you can improve your monthly cash flow. If it?s such a pain in the tail hire someone to do it for you.
With huge cash flow savings/improvements to you it might be the difference between doing the deal or not doing the deal. And right now you need that cash flow. Using interest only (and you never did mention if it was interest only or amortized, if amortized, what term) your positive cash flow is $1,388 per month. Or $86.75 per unit. Tight. If it is amortizing over 30 years your monthly positive cash flow is $1,101 per month. $68.81 per unit. Very tight. And in my area hard money generally comes with a 1 year balloon - same where ever you are? Really, really tight.
You didn’t answer about the other items; is it separately deeded? What about the equity share and buyout agreement? Are they possible?
Now if you used your provider of the second (going from a loan to an equity share is not that big a jump conception wise) or the musical chairs if separately deeded or somebody with good credit:
70% first @ 8.5% 30 yr. am. = $3,229
Second stays the same = $ 900
Stated NOI @ 79,963/12 = $6,663
Positive cash flow = $2,535 or $158.43 per unit. Not as tight.
An improvement of $22,000 up front and up to $1,431 per month. For 30 years = $537,160. Dang! Over half a million dollars MORE than currently structured. That’s worth a little crapola.
I am a lender (not offering or suggesting that we work together). The reason I come to this and a couple other sites’ is to learn how to be creative. That’s hard for me. But I know ways to help people by using the loopholes and connections that I have and that?s what I was sharing even if a little too vehemently. Just as I hope to become more effective by looking at the creative side from the sound of it if you added a firm basis of “normal” financing you’d be a powerhouse.