If you’ve been looking for a way to not only provide value to your clients, but also get paid well, Nectar has been sending out multiple five figure affiliate commissions like clockwork and it’s only growing.
It’s time to get in on the ground floor!
What is CASHFLOW FINANCING? Cashflow Financing is a financing option specific to experienced real estate investors with cash flow properties. It’s perfect for investors who have either tried the traditional mortgage route unsuccessfully, or who need cash right now for any type of new value add opportunity. As an investor, the traditional mortgage route would require me to refinance all of my properties at higher interest rates or take out home equity loans and/or lines of credit to get access to their equity and cash. Cashflow financing allows these investors to access capital based simply on their cashflow of existing rentals or commercial properties. The only requirement is that they are a seasoned investor, have a P&L showing income, and have a structured LLC.
Here is an Example
Let’s say Jim has 10 Short Term Rental Properties, and they all have mortgages on them currently, along with high LTV ratios so there isn’t much equity to pull from. The traditional mortgage route wouldn’t allow him to pull any cash from the properties because the collateral just isn’t there. But… Jim is cash flowing an average of $600 per month per property (after financing expenses, etc.) so he has $6000 per month of free cash flow. Jim wants to get some cash to improve a few of the properties and increase the cash flow, as well as acquire 2-3 more properties in the next 12 months. CASHFLOW FINANCING would allow Jim to leverage his Cash Flow as collateral for the loan, rather than leveraging his equity, lien positions, getting expensive appraisals and title work completed, and risking changing rates and market conditions.
How does it work?Â
When a customer submits an application on the website (through your affiliate link) they will be given a custom dashboard. The underwriting process has three main qualifications for an ideal customer.
- Seasoned: 3+ Years Experience
- Official : Proper Business LLC structure and formulation
- 12 Months P&L: No intermingling of funds, you must manage your business like a business.
The underwriting process is simple and fast (assuming the documentation is submitted quickly) and the clients can get cash in as little as 7 days. They simply verify the assets and the books to ensure their ‘investment’ in the company will be appropriately collateralized.
You might be asking, how does Nectar secure the loan and that they will be paid back?Â
The client will assign membership rights to nectar in the LLC as a non-operating member and as such, they can assure the payments will be received and allocated appropriately.
This all sounds great, but how do I get paid? This is the coolest part of the entire thing is that because this is NOT a mortgage, it doesn’t require any of the RESPA procedures that typical mortgages do. You get paid a percentage of the loan amount up front, and a percentage of all of their payments on the loan, and any subsequent financing they receive.
This is great news, because technically you don’t even have to be a licensed Loan Officer to send business and get paid. So if you are a real estate agent, a coach, an agency, an investor with a large network, or a loan originator at a large bank, this can be a program you refer clients to and get paid ‘pillow money’ up front and quarterly. Talk about a retirement plan!For example, Let’s say you refer Jim to Nectar, you share your affiliate link with him and he becomes an application. Jim is approved for a loan of $135000 with total payments over the life of the loan approximating $234,00 on a 5 year payment term.
If you are a part of our VIP Affiliate network we’ve been approved for you to receive a payment of 1% of total payment amount on this loan up front. (payment and affiliate rates subject to change **) That’s a check right away of $2,340 in your pocket as soon as the loan is funded. PLUS you will receive quarterly payments in the amount of 1% of the total payment amounts. In this scenario the payments are $3900/month so $11,700. You would receive a payment of $117 every quarter of pillow money. FOR THE NEXT 5 YEARS!
What is the interest rate and how do they calculate it?
We made a really cool LOAN CALCULATOR you can use to get an idea of the rates and terms of the loan. They finance anywhere from 3-7 years and APR averages in the range of 11%-18% depending on the term and underwriting conditions. A good rule of thumb is that they can qualify for a payment up to 65% of their FREE CASH FLOW.