The ability to get a loan from the bank (or perhaps another source) is one of the most important things you need to secure for your real estate project. Without the capital, the ability to purchase a quality real estate investment and generate substantial returns is highly diminished.
How do you secure that loan? To start, lenders will want a down payment of 20% to 30%. They may ask for you to sign personally (i.e. your personal net worth is now collateral for the property). For some, that might be enough to get the funds.
However, if you want to leverage the property even more from the standard 80% to 70% and/or the project is less straightforward the bank will likely want to see financials. The Premium REIF Model provides those financials for the bank (examples below), providing everything they will want to see and more:
36 Month Cash Flow
Annual Cash Flow
Debt Ratios Over Time: Debt Coverage = EBITDA/Loan Payments, Loan to Property Value = Debt Balance/Property Value, Loan to Total Value = Debt Balance/(Total Cash Flow + Property Value)
Sources of Equity/Other Capital
I utilized these bank financials to secure financing for a more complicated project, indicating to the bank that the cash flows were more than enough to cover their debt service. Further, the financials helped convince the bank to give us a down payment of 15% instead of the standard 20% to 30%.
The Premium REIF Model gives you the tools you need to convince the bank your real estate project is a good loan for them and on more favorable terms. Use the Premium REIF Model to close the deal with bank and start generating high returns and passive income on your real estate investments.