Totally agree the refinancing (extracting cash / equity value) bit is the key to really unlocking the frameworks potential in our world, as there isn’t a mortgage instrument in play (aka a loan against your income, collateralized by the RE asset). One thing I’ve thought a lot about (though everyone knows most lenders, especially the SBA, don’t quite move at the speed required in our space) is using or diverting the free cash flow from asset #1 to cover the cash injection required for a loan on asset #2. In this way, you really only need the cash injection (typically ~20% of asset value) for the first deal. You then use a portion of those cash flows to finance asset #2 and on and on. Anyways, a few thoughts :)
Amazing piece of content, I was thinking the same about RE. Golden!
What a piece of content! 💥
Totally agree the refinancing (extracting cash / equity value) bit is the key to really unlocking the frameworks potential in our world, as there isn’t a mortgage instrument in play (aka a loan against your income, collateralized by the RE asset). One thing I’ve thought a lot about (though everyone knows most lenders, especially the SBA, don’t quite move at the speed required in our space) is using or diverting the free cash flow from asset #1 to cover the cash injection required for a loan on asset #2. In this way, you really only need the cash injection (typically ~20% of asset value) for the first deal. You then use a portion of those cash flows to finance asset #2 and on and on. Anyways, a few thoughts :)
Really great parallels between RE and SaaS. Started the opposite way with RE -> SaaS currently.
Curious about what Stripe products you're using that they offer you financing based on transactions? If you're willing to share, of course.
Thanks