All Forum Posts by: Magnus Wikström

Hi @Oleg Kosyachny,

Interesting. We're Swedish, building ground up in SWFL. If you need any financing connections for foreigners, I can probably help you out. I've spent a couple of years asking around for the best conditions for us and have helped a couple of builders too. Background in development financing in Europe.

Best,

Magnus

Ok, as long as you are sure you can get it done. Yes, we can start the paperwork now and are very responsive. Title and insurance are no worries in this case.

@Tony Pellettieri

The obvious thing is to sell properties to gain cash yes, but how have the recent months been for you? Are you cashflow positive? If it's only a main leak you need to fix, it sounds like a typical small business cash flow issue. What you need in that case is unsecured working capital. Where are you banked? In 3 months, are you cashflow positive? There's a huge market for unsecured business financing, and if you've generally got a decent cashflow, you should qualify. A credit line for instance. It sounds like you need some short term breathing space, and that's what an unsecured credit line can give you. The bank will probably slow, so I would recommend spending 1-2 hours on Google and you'll find plenty of options. Then use that until you hit larger liquidity events, as 1 or 2 asset sales. and start de-leveraging yourself. 

Basically all people in real estate who go bust do it by overleveraging, and not valuing sufficient liquidity enough. But it's not an unfixable problem. It definitely sounds solvable to me. You just need to buy yourself some time.

Hi @Erik Estrada,

Ok, if we're at 2% total origination we're good. When can you close it you think?

Hi Garry,

That's a good workaround, makes total sense. I was thinking about it in the weekend, and another way to go would be to use Mezzanine financing, preferrable to equity. I'm assuming you need the debt then for horizontal still, but would the $60m debt facility be used to pay the horizontal debt off? How much is your vertical work?

Hi @Josh Klein,

We could be open for doing projects in Indiana, if the financing conditions and market conditions are favourable. But as you have a good contractor, this gets us a long way. We're currently building SFR ground up in SWFL. We're foreigners. Good liquidity to showcase. If you come across projects or have any other interesting sharings, we'll definitely take a look.

Best,

Magnus

Hi @Garry Miller,

You can't bring another million? I think that will help. Few that do that type of leverage on that size of deal.

Is it refinanced once infrastructure is in place?

@Scott Wolf

We're Swedish so we don't need it. It's a Visa Waiver country like Canada or the UK.

Hi Henry,

Difficult. Of course I want to help a fellow entrepreneur. So the question is if you can keep the mortgage moving to your next place, right? Which seems difficullt.

Isn't the option here just to try to sell the property and move to a rental for some time, to spare your liquidity which is perhaps the most precious thing in a time like this?

What is it mainly you're trying to achieve?

If you're seeking increased liquidity and some breathing room, maybe like factoring or MCA for your business is the easiest thing?

The situation is normally that someone has a profitable business and wants to grow it but lacks the liquidity, but I'm not sure of your business? Is it profitable currently.

Sorry for not being able to offer some more concrete advice or solutions. But genuinely, it seems difficult. I hope things turn

All the best

Let's see if there are any heavier fishes in this pond,

I just had a contact I've worked with on a couple of deals call me up and see if I had any major equity investors interested in a very intriguing deal.

It's a top executive of a well known broadcaster who's buying out the real estate asset that also includes the broadcasting infrastructure worth an additional $35m, apart from the $45m (high valuation) real estate, for $16m. Only possible because the buyer includes the top executive of the broadcaster.

Total: 174.000 sqft

Currently under LOI: 70.000 sqft at $1.6m gross rent / month

Exit strategy: either sale or refinance when more space leased out in 1-2 years, although the investor is free to remain with the equity, and there's also possibility for equity in the newly to be formed broadcaster company.

Seeking: $6m equity for 20% share in real estate asset, also holding the infrastructure assets

Real estate in top condition with no value add to be done.

Is there an interest from here?

They expect the deal to close in approx. 2 weeks.

Note: My background is in institutionalised brokerage of similar debt and equity (private market), primarily real estate development finance placement. I have a few others I'll reach out to next week as well.

Thanks