[Kash]

Who are the WBL alternatives?

I have a merchant with a investment property that is worth 1.1 million and he owes 700k on it.

[Yankeeman07]

Who are the WBL alternatives?

I have a merchant with a investment property that is worth 1.1 million and he owes 700k on it.

What amount of funds are they seeking?
Type of property?

[Kash]

single family investment property. looking for max.

[premiercap]

Give me a call we can refi/cash out that property.

Nate
646 470 2154

[abfunders]

You want to cash-out refi when that's already at 63.5% LTV? And get him maybe 75% LTV, netting him (after all the fees involved) only about $70k. And then he's be restarting his amortization.

It would be a very expensive idea to do anything other than WBL if there's business revenue. Believe it or not, WBL is cheaper than a refi in this case.

[premiercap]

WBL is not going to be cheaper than an actual term loan over 25 years at around 5%. There wont really be any cash out at 75-80% LTV, but a little.

[abfunders]

WBL is not going to be cheaper than an actual term loan over 25 years at around 5%. There wont really be any cash out at 75-80% LTV, but a little.

WBL is very likely cheaper here, but it's certainly cheaper than a hard money loan. Even a 1.76 over 24 months for $70,000 is costing them $53200.

Broker fees on this deal? Probably 3%, but let's say 2%. Lender points, another 1-2. 4% of fees on a $770,000 loan is $30,800

Restarting amortization will cost them all the interest on the first several years, along with whatever prepayment penalties they get on the original loan.

If it's a hard money loan then it's even easier. The $30,800 is still an estimate, and then they have to REDO IT IN A YEAR!

Now do the calculation at a 1.49, rate (depending on the term/rate) and you're at $34,300. 1.36, $25,200.

WBL is for sure cheaper than a HML, but to get $70,000 out on a new amort schedule also won't make much sense here.

[premiercap]

Who said hard money? Did you read the post regarding term loan at 5%? Anyway, they can do whatever they want but I've done plenty of comparisons of term loans of this type against what WBL typically offers and the difference is substantial.

Also, where did you get 1.76 over 24 months? Look at the terms I mentioned.

[abfunders]

Who said hard money? Did you read the post regarding term loan at 5%? Anyway, they can do whatever they want but I've done plenty of comparisons of term loans of this type against what WBL typically offers and the difference is substantial.

Also, where did you get 1.76 over 24 months? Look at the terms I mentioned.

I read it. 1.76/24 months is the largest factor rate (after upsell) that WBL offers. I was using it for comparison.
And the OP didn't say that the client was looking for 5% over 25 years, OP might be looking at a HML. You suggested 5%, and I know that. Hence I talked about both.

5% over 25 years is a much better rate (and it's monthly), but the question is going to boil down to how much cash will it cost him within the first 1-2 years, and perhaps his current first position is at a 3.5% rate from a bank, so why touch it?

[DTFdowntofund]

Par started doing collateral based deals. I had a 1M deal with them that never came to fruition, and haven't messed with it since... but if you really can't get it done I guess that's an option.

[WestCoastFunding]

Par started doing collateral based deals. I had a 1M deal with them that never came to fruition, and haven't messed with it since... but if you really can't get it done I guess that's an option.

Influx does the Par type deals, too.

[DTFdowntofund]

Influx does the Par type deals, too.

I wasn't privy to that. Good to know.

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[premiercap]

Right, but from a pure loan standpoint the term loan over 25 years would be a better situation for the guy

[chris32111]

i have a deal where client has property which is 3 arches that is already divided up already. needs money to start building houses. anyone willing to lend on the property ?

[abfunders]

i have a deal where client has property which is 3 arches that is already divided up already. needs money to start building houses. anyone willing to lend on the property ?

Is it shovel-ready? Meaning, are the utilities ready to be installed once there's a house, or the utilities need to be brought to it?

Also, what's the ARV of the total construction?