#014: Mezzanine Financing? Transactional Funding? It’s not as complicated as it sounds

Listen as I talk with Wallace Wong and we walk through different possible options on a “book of business” project Wallace is working on.  We talk about back-to-back funding, bridge funding, seller carry-back, wrap mortgages, and the mechanics of mezzanine financing.  We also touch on performing/non-performing notes in the future.

Check out this episode!

SHOW NOTES

0:43 – Information on Wallace’s background, how he got into real estate investing, and how he and Tom have worked and mentored together. 

 

2:39 – Introducing a project Wallace is working on now and planning to talk about performing/non-performing notes in the future. 

 

4:46 – Background details on one of Wallace’s current projects and why he’s looking into mezzanine financing. 

 

6:30 – Defining gap funding, back-to-back funding, transactional funding, bridge funding, and mezzanine financing. 

 

10:11 – Digging more into Wallace’s options for financing his project and some details on the business. 

 

15:06 – Applying some hypothetical numbers to analyze this deal. 

 

18:02 – Examining Wallace’s goals for the deal to determine what kind of financing may work best. 

 

20:51 – Describing a potential financing method that Tom’s firm often employs. 

 

25:26 – Talking through potential downsides of this financing method. 

 

26:56 – More on the mechanics of mezzanine financing as it may apply to this deal. 

 

31:40 – Background information on seller carryback deals and why this is a win-win in Wallace’s deal. 

 

32:56 – Comparing this situation to wrap mortgages; protecting the seller as well. 

 

35:49 – Looking into financing options that would be easier than mezzanine financing. 

 

37:00 – Contacting Wallace, getting information on notes through his newsletter. 

 

 

Resources and Links Mentioned: 

 

https://cashflowingnotes.com/ 

 

wallace@cashflowingnotes.com 

 

Contact Tom at tom@tombraegelmann.com.