All Forum Posts by: Magnus Wikström

5% more down means your equity contribution is 50% higher than if at 10% down. A significant difference.

Agree. Use a fix & flip loan. Reach out if you need help.

If you can use 100% of someone else's money at 11% rate and you're making more than that, great! I wouldn't hesitate a second. It's the lender that takes a larger risk, you're just saving more of your own liquidity, should you need it.

Realtors often don't have a clue. Overpaid, undereducated... Sorry if this offends anyone. Your contact certainly seems to be one of them. Not an entrepreneur, that would do this kind of deal.

Hi Matthew,

Congratulations on the deal.

I would just do a fix & flip loan, hard money. You'll probably be reimbursed when you take this out, because of the equity value. Although you want to Aribnb it, you're gonna pay high when refinancing and the ARV is so high compared to your costs. It would make more sense to sell it in my mind, but I'm not the lucky buyer.

Hi again Matthew,

How's it going on this one? Good to see your ARV seems higher than last. Gives you good ground to complete it.

75% ARV shouldn't be an issue. Drop me a message if still of interest.

The deal is probably gone, I hope you got it. You could have used a lender that would allow for deferred interest payments and origination fees, which would have saved substantial liquidity. PM if the deal is still on and if of interest.

Nothing wrong with the deal itself but horrible HML.

Hi Micaela,

Yea, those terms are not very attractive. You should probably be able to get at least 85% LTC / 75% ARV and potentially interest payments and origination fees deferred until maturity. Plenty of options with cheaper origination fees.

Message if you want help.

Best,

Magnus

Hi Nicole,

This is certainly a strong deal.

I can connect you to lenders which allow you to defer all interest and origination fee payments until you sell the projects, which will give you the highest return on your equity and save as much liquidity as possible. If you're able to put in about $100k in each lot yourself, it should be possible to have the rest externally funded, around 85% LTC.

I mainly set up financing for GC's doing these types of projects in their own LLC's but am happy to help if of interest. Message me if you want to have a call.

Best,

Magnus

Hi Yonic,

I think it makes more sense to use a lender that gives you higher leverage straight up, and that potentially allows you to defer interest payments and origination costs, to save further liquidity.

I can probably help you if you want. Message me if you want to jump on a call.

Magnus