Dalia recommends exploring debt restructuring solutions such as extending amortizations or paying down expensive debts with cheaper money. If getting every property to positive cash flow is not feasible, consider adding more income through parking, storage, short-term rentals, or investing in high cash flow properties. You can also explore the StreetWise cash flow booster strategy by searching for it online.
Many private lenders are changing their guidelines due to market conditions, including increasing interest rates, lender fees, and cutting loan-to-values. Unless you have specifically planned for higher holding costs and have a clear exit plan, this is not the time to lean heavily on private money.
If your property is coming up for renewal in the next six months, avoid locking into a five-year fixed rate because it will lock you in at the height of the cycle. If you cannot afford additional rate increases and value flexibility, stick with a variable rate; otherwise, consider a short-term fixed rate for one or two years.
Free up any underutilized capital by setting up or increasing secured lines of credit on your properties, and with your mortgage broker’s guidance, tap into unsecured lines of credit. You should also encourage your joint venture partners to do the same and get them mortgage-ready so you can jump on opportunities the market presents.
