Deal Analyzer

Creative Finance Calculators

Four powerful calculators for every creative finance strategy. Analyze your deal structure, funding needs, cashflow, and exit strategy.

How the Morby Method Works

Two transactions, one closing. A DSCR lender funds the 1st position loan (typically 80% LTV). The buyer's required down payment is temporarily covered by a transactional lender. After funding, the down payment is swapped for a seller-financed note in 2nd position. The transactional lender is repaid the same day. Result: buyer acquires the property with little to no money out of pocket, seller gets paid, and the property has a 1st lien (DSCR) + 2nd lien (seller carry).

Editable fields
Auto-calculated
PRE-CLOSING

SELLER

$
%
$60,000
%
$6,000
%
$15,000
$
Total Costs to Close
$21,000

BUYER

%
$240,000
%
$60,000
%
$9,000
%
$3,600
Total Cost to Close
$72,600
$
TF Contribution
$72,600

TRANSACTIONAL FUNDER

Funding Amount
$72,600
%
$1,815
Total Payback
$74,415

ESCROW AMOUNT

1st Loan Amount
$240,000
Transactional Amount
$72,600
Buyer Contribution
$0
Total
$312,600
POST-CLOSING

SELLER

Post-Closing Credit
$219,000

BUYER

Post-Closing Credit
-$14,415

TRANSACTIONAL FUNDER

Post-Closing Credit
$74,415

PROPERTY

1st Lien (DSCR)
$240,000
2nd Lien (Seller)
$60,000
Combined Liens
$300,000
Combined LTV
100.00%
BUYER'S TOTAL FEES
Buyer Closing Costs
$9,000
Origination Fees
$3,600
Transactional Fees
$1,815
TOTAL FEES
$14,415
CASHFLOW ANALYSIS

1ST POSITION LOAN: $240,000

yr
%
Monthly Payment
$1,678
Yearly Payment
$20,137

SELLER FINANCING: $60,000

yr
%
Monthly Payment
$0
Yearly Payment
$0

Silent second — no monthly payments to seller

COMBINED DEBT SERVICE

Monthly Payment
$1,678
Yearly Payment
$20,137

INCOME & EXPENSES

$
%
$
NOI / Month
$2,060
NOI / Year
$24,720
DSCR (1st Loan)
1.23x
Borderline
DSCR (1st + Seller)
1.23x
Including seller financing
Cashflow / Month
$382
After all debt service
Cashflow / Year
$4,583
Annual net cashflow
EXIT ANALYSIS

EXIT PARAMETERS

%
$

EXIT RESULTS

Exit Value
$350,000
Max Refi Loan
$262,500
Combined Liens
$300,000
Equity at Exit
$50,000
Cash Out at Refi
-$37,500

You'll need to bring cash to refinance at this LTV

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