Jake & Gino: Real Estate Investing & Multifamily RPP - Pulling the Cash Flow Levers with Nick Chapman
Dylan Marma and Mike Taravella interview Rand Capital’s Nick Chapman to discuss the financing cash flow levers to maximize cash flow with agency debt.
- Interest Only
-
- Allows for more velocity on your capital to hit IRR targets and preferred returns
- You leverage the interest-only period to reinvest into the property in the form of capital expenditures (Capex)
- Case Study
-
- Loan: $3M Loan
- Interest Rate: 4.25%
- Cash Flow Savings of $50,000
- Longer Amortization Period
-
- Longer amortizations allow for more favorable Debt Coverage Ratios
- Case Study
-
- Loan: $3M Loan
- Interest Rate: 4.25%
- Amortization: 30 years
- Cash Flow Savings of $18,000
- Higher Leverage
-
- Share the upside with investors by having your lender take on the risk
- Investors can still have capital to invest in other deals
- “Let your lender be your biggest partner” - Nick Chapman\
- Expert Tip of the Day: When refinancing out of bridge debt, if you are doing a rate and term refinance you can go up to 80%, if you are doing a cash out refinance you can go up to 75%.
Contact Information:
Invest with Rand Partners
Follow Us on Linkedin @Randpartners
Follow Us on Instagram @Randpartners
Follow Us on Facebook @Randpartners
We're here to help create real estate entrepreneurs...
About Jake & Gino: Jake & Gino are multifamily investors, operators, and owners who have created a vertically integrated real estate company. They control over $350M in assets under management. They have created the Jake & Gino Premier Multifamily Community to teach others a simple three-step framework for investing in multifamily real estate. Connect with Jake & Gino here --> https://jakeandgino.com.
Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.