[shieldfunding]

what % equity does one need on property and what's max amount funded based of bank deposits ?
furniture biz
BUSINESS STARTED IN 1998
Owns the building worth 1.2 mill ( owes $500k on it)
does $70K/Month
looking to buy out
3 positions / balances
XXX 55k
XXX 24k
XXX 7k

[abfunders]

You can try out LiftForward, but good luck getting a deal done with them. They're pretty picky.

If you want to go purely RE-based, as long as the credit is 650+ (and VERY few [if any] lates on mortgages in the last 2 years), the client can a loan up to 75% LTV, and the client will have 70% of the cash available. Client has to be willing to let another lender take over first position, and re-fi (restart) their mortgage.

Alternatively, the client can get an SBA on the building.

If the property is the tristate area, I have a lender who can go up to 2nd position hard money loan, in the 6-8% range with origination points. But to buy out just $86,000 is too small for them.

[golf2014]

Wbl

[FTOP]

I probably have a couple of options. give me a call and we can discuss.

[Nikkiclean06]

South End

[dpFund]

Real estate works very different than cash advance, so decisions are not based upon bank deposits.

Micah is correct about 65% - 70%. Here is how the math works:

1.) Value of Building X 65% (best to under-promise/over-deliver) = $780k total funding available
2.) Subtract current mortgages/liens ($780k - $500k = $280k of potential cash out
3.) Factor in points/fees/appraisal, etc. and the client is probably looking at $225k-$250k of potential cash out

This, of course, depends upon a variety of factors. Bad credit is a factor. If the client is or has recently been late on his mortgage then you can probably stop here since that's likely a deal killer. If the client's low credit score is due to other factors then not necessarily a deal killer...but the cost of funds will be higher to factor in lender risk.

The multiple positions is likely NOT to be a factor for this real estate loan. Client can use funds to pay them off. First mortgage would be refinanced with cash out.

At the end of the day, we would need to understand how the mortgage would be repaid. If the client is losing money...that would be a factor as well.

Feel free to reach out and I'll see if I can fund internally.

Best,

Dan Page
Boulder Equity Partners
Direct: (303) 938-8280
Dan@BoulderEquityPartners.com

[ElitheMoneyGuy]

WBL

Here's the formula.

A.) Value of property x's .60 minus the existing lien = Net Equity (1200000 x .60 = 720000 - 500000 = 220000)

B.) Monthly average deposits multiplied by 2, sometimes 3. (70000 x 2 = 140000)

The lesser of A. & B. is the fundable amount. (give or take - pending BPO and Title Work.

[WestCoastFunding]

WBL

Here's the formula.

A.) Value of property x's .60 minus the existing lien = Net Equity (1200000 x .60 = 720000 - 500000 = 220000)

B.) Monthly average deposits multiplied by 2, sometimes 3. (70000 x 2 = 140000)

The lesser of A. & B. is the fundable amount. (give or take - pending BPO and Title Work.

They're better off refinancing their first mortgage and cashing out to payoff the advances. It's the difference between paying 8-12% and paying 70%. Not to mention the 1st mortgage's amortization will be much longer.