Self-Funded vs Traditional Searcher Returns
June 22, 2021
by an investor from University of Pennsylvania - The Wharton School in Dallas, TX, USA
June 22, 2021
by an investor from University of Pennsylvania - The Wharton School in Dallas, TX, USA
from Cornell University in Toronto, ON, Canada
I suppose the leverage in the model for Self-Funded meets standard OCC guidance (ex. leverage limits and amortization requirements), but are lenders generally comfortable doing a 90% levered deal? Does this maybe have to do with the guarantee that comes with an SBA loan?
I'm also curious how the model arrives at 80% for 'Searcher % of Gains' - I see it's an input, and I'm just wondering exactly how it's derived.
Again, very insightful post, and thanks for sharing!
from University of Pennsylvania in Dallas, TX, USA
Here's the GoogleSheet of the model for those interested!