Cross Collateralized Deal: Easy Street Capital | AJ Weed posted on the topic | LinkedIn (original) (raw)
AJ Weed’s Post
Senior Account Executive at Easy Street Capital
6mo
**Cross Collateralized Deal Highlight** This client came to us with a new flip opportunity but was tight on liquidity/reserves. After a quick conversation, I learned of a rental property owned free and clear that she'd be willing to pledge as collateral. As a result, Easy Street Capital was able to provide 100% financing (plus some cash out proceeds) while maintaining a safe LTV position. Here's how it broke down: Borrowers total cost basis on subject property (purchase + reno) = 380k−380k - 380k−320k PP - 60kreno−60k reno - 60kreno−450k ARV Traditional leverage with no collateral = 85% LTC - Loan amount = 323kBorrowertiesinrentalpropertyascollateralwithavalueof323k Borrower ties in rental property as collateral with a value of 323kBorrowertiesinrentalpropertyascollateralwithavalueof285k 'as is' - New loan amount = 473k−Totalrealestatevalueafterreno=473k - Total real estate value after reno = 473k−Totalrealestatevalueafterreno=735k - LTV position = 64% Borrower walks away with money at closing & we have plenty of equity protection as the lender. Win win!
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