RPP - Pulling the Cash Flow Levers with Nick Chapman

Jake & Gino: Real Estate Investing & Multifamily

Jake & Gino

Smartinvesting, Buyingrealestate, Investing, Multifamilyrealestateinvesting, Business, Investingsmart, Apartmentinvesting, Management, Makingmoney, Realestateinvesting, Cashflow, Jakeandgino, Realestateinvestment, Commercialrealestateinvesting, Buyingapartmentbuildings, Entrepreneurship

4.9 • 842 Ratings

🗓️ 23 October 2019

⏱️ 17 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

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: Nick Chapman’s Email Rand Capital Website Invest with Rand Partners Follow Us on Linkedin @Randpartners Follow Us on Instagram @Randpartners Follow Us on Facebook @Randpartners

Transcript

Click on a timestamp to play from that location

0:00.0	Why don't you guys want to just start from the top one more time.
0:03.4	Welcome to the Wheelbarrow Profits Podcast, Rand Partners Edition.
0:12.9	What's up, everyone? This is Dylan Marmer, bringing to you the Rand Partners podcast,
0:17.0	joined by our co-host, Mike Taravella. How you doing today, Mike?
0:19.9	Doing well, living the dream, making it happen with everyone.
0:24.0	And today we have our own rank capital, mortgage broker, the king of financing
0:30.2	at Wright, Nick Chapman.
0:31.7	How's it going, Nick?
0:33.3	Mike, it's going great.
0:34.3	Appreciate you guys having me here today.
0:37.0	Well, it's good to have you back.
0:38.2	Excited for today's topic, topic that really is made up of our two favorite words,
0:43.8	cash flow.
0:44.9	As Jake would say, if it don't cash flow, let the grass grow.
0:48.7	So Nick's here to share with us today about the cash flow levers.
0:54.0	So Nick, want to tell us more about that? What is a cash flow
0:56.0	lever and why is it important for us to know about that? Well, it's important to know about it because
1:00.0	you guys love it, right? On all your deals, the more cash flow, the better, whether you're buying
1:05.6	it on your own or you're syndicating it either way, right? And so what we're going to talk about
1:10.7	here today is how to increase your cash flow, right? And so what we're going to talk about here today is how to increase
1:12.5	your cash flow, right, monthly by using interest only, by using longer amortizations, and by
1:20.6	accessing higher leverage on your deals. Awesome. Well, these are all huge tools that we look forward to, you know, showing with our
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Jake & Gino, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Jake & Gino and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.