As a “full-service investor” we offer a wide variety of help. I try not to be overbearing about advertising our solutions, but when I get requests, I try to respond. So, here goes. Here are the things I may be able to offer, depending on the actual circumstances:
Residential, non-owner-occupant funding to investors
Homeowner with negative equity wishing to sell while avoiding the lender hassle associated with a typical short sale…and to clean up their credit report IMMEDIATELY so they can qualify for a new loan on a new home they can actually afford
Commercial distressed or value-add funding $1MM and up
Debtor-in-possession (DIP) funding for operations during commercial bankruptcy
Purchase of non-performing notes and pools
Purchase of REO pools
…and much, much more–we almost always have SOME solution for you. ASK!
If you have a need, we may have your solution! Whether you are looking for distressed properties to buy and renovate or looking for renovated properties for cash flow, whether you are a sponsor looking for funding for your commercial value-add project or a sponsor in distress, we understand your challenge and can generally help or refer you to someone whose wheelhouse accommodates what you need.
The name of the success game is to acquire assets that generate cash flow. Cash flow is king. With a mix of strategies that generate cash for investing or acquire assets for cash flow, you can make steady progress toward financial independence.
I work all my top-of-my-head cash flow numbers assuming 40% for expenses. That includes taxes, insurance, repairs reserve, and property management, but not any debt service. For instance, to achieve a target of $1500 cash flow per month, that means I need gross rent of at least $2500 per month. If I have to pay the utilities and am not charging the tenants to cover them, my expenses will be higher. My 40% number is just a quick way to analyze a deal in a minute or two. It is a first-level filter. If the deal’s numbers do not work for that, I move on. Then I think about debt service. If the net cash flow will also cover the debt service, then I get serious.
Pick your number for quick analysis. Would you use more than 5% as your reserve for repairs? Do you know there will be a major repair in a few years and you need to start setting aside more money to cover it? Do you have HOA dues? What do you have to figure for debt service? Know your numbers and be ready to apply them quickly, so you can look at more opportunities.