Most investors inspect the building before buying a property. Professional investors inspect the math — and the ones who really know what they're doing run it in their head, in the driveway, before the tour is over. Four numbers decide every deal. Here they are on a $1 million property, no calculator required.
Marcus is a general contractor — four years in, good revenue, cash always tied up in jobs. He's renovated dozens of buildings for other people and owns none of them.
He finds a $1 million mixed-use property renting for $100,000 a year. Old Marcus would have inspected the roof. New Marcus runs the blueprint:
One million over one hundred thousand — GRM of 10. Fair price. After $5,000 vacancy and $20,000 expenses, the property keeps $75,000. Seventy-five over a million — a 7.5% cap rate. The $750,000 loan costs $5,000 a month, $60,000 a year. Seventy-five over sixty — a 1.25 DSCR, exactly what lenders want to see. And $15,000 of cash flow on $250,000 down — 6% cash-on-cash, before appreciation or loan paydown. (Illustrative numbers, but realistic ones.)
Ninety seconds. Four divisions. A complete underwrite.
The bank saw a contractor with messy tax returns. A DSCR lender saw a property earning 25% more than its mortgage. Marcus closed through Wallace Capital Funding — and because every WCF loan reports to Dun & Bradstreet, Experian Business, and Equifax Business, his LLC's credit profile now grows with every single payment. One building, two assets.
Run the four numbers on your deal. Then bring them to Wallace Capital Funding — DSCR and rental loans, fix-and-flip, construction, SBA, equipment leasing, factoring, and working capital, all underwritten on the strength of the deal, all building your business credit while they work.
"Before you buy the building, read the blueprint — because the numbers decide the future of the investment."
#RealEstateInvesting #DSCR #CapRate #CashFlow #BusinessFunding
Comment "FUNDING" for help to structure a deal
Marcus is a general contractor — four years in, good revenue, cash always tied up in jobs. He's renovated dozens of buildings for other people and owns none of them.
He finds a $1 million mixed-use property renting for $100,000 a year. Old Marcus would have inspected the roof. New Marcus runs the blueprint:
One million over one hundred thousand — GRM of 10. Fair price. After $5,000 vacancy and $20,000 expenses, the property keeps $75,000. Seventy-five over a million — a 7.5% cap rate. The $750,000 loan costs $5,000 a month, $60,000 a year. Seventy-five over sixty — a 1.25 DSCR, exactly what lenders want to see. And $15,000 of cash flow on $250,000 down — 6% cash-on-cash, before appreciation or loan paydown. (Illustrative numbers, but realistic ones.)
Ninety seconds. Four divisions. A complete underwrite.
The bank saw a contractor with messy tax returns. A DSCR lender saw a property earning 25% more than its mortgage. Marcus closed through Wallace Capital Funding — and because every WCF loan reports to Dun & Bradstreet, Experian Business, and Equifax Business, his LLC's credit profile now grows with every single payment. One building, two assets.
Run the four numbers on your deal. Then bring them to Wallace Capital Funding — DSCR and rental loans, fix-and-flip, construction, SBA, equipment leasing, factoring, and working capital, all underwritten on the strength of the deal, all building your business credit while they work.
"Before you buy the building, read the blueprint — because the numbers decide the future of the investment."
#RealEstateInvesting #DSCR #CapRate #CashFlow #BusinessFunding
Comment "FUNDING" for help to structure a deal
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