Wise Capital Solutions - Morby Method Calculator

Gold bordered fields are editable|
Grayed out fields are calculated

PRE-CLOSING

SELLER

Asking Price

The gross purchase price agreed in the Purchase and Sales Agreement or the listed price

Seller Financing

Portion of the price the seller carries as a loan to the buyer

Seller Closing Costs

Costs the seller pays at closing (title fees, transfer tax, doc stamps, etc.)

Real Estate Commission

Broker fees paid by the seller (usually % of Asking Price)

Outstanding Loan

Existing mortgage(s) that must be paid off at closing by the Seller

Total Costs to Close

Seller Closing Costs + Commissions + Payoff of Outstanding Loan

BUYER

1st Loan Financing

Percentage and dollar amount financed by a traditional lender

Downpayment

Buyer's cash required by the 1st lender (excluding closing costs)

Buyer Closing Costs

Title, escrow, lender fees, recording, insurance, etc

Origination Fees

Lender fees charged to create the loan (points, underwriting)

Total Cost to Close

Down Payment + Buyer Closing Costs + Origination Fees

Buyer's Contribution

Cash the buyer actually wires to escrow

Transactional Funder Contribution

Portion of Buyer’s required cash temporarily funded by the transactional lender

TRANSACTIONAL FUNDER

Funding Amount

Cash the transactional lender wires to escrow

Funding Fees

Fee charged for the short-term use of funds

Total Payback

Funding Amount + Funding Fees (repaid same day or within hours)

ESCROW AMOUNT

1st Loan Amount

Funds coming from the traditional lender

Transactional Amount

Funds coming from the transactional lender

Buyer Contribution

Buyer's own cash into escrow

Total

Sum of all inbound funds = exact amount needed to close

POST-CLOSING

SELLER

Post-Closing Credit

Money the seller owes or is owed after closing

BUYER

Post-Closing Credit

Amount owed to or from the buyer after closing

TRANSACTIONAL FUNDER

Post-Closing Credit

Amount paid back to transactional funder after closing

PROPERTY

1st Lien Amount

Primary loan recorded against the property

2nd Lien Amount

Secondary loan recorded against the property (seller financing)

Combined Liens

1st Lien + 2nd Lien

BUYER'S TOTAL FEES

3rd Party Fees

Transactional Fees

Buyer Closing Costs

Origination Fees

CASHFLOW ANALYSIS

1ST POSITION LOAN AMOUNT: $0

Amortization (years)

Time horizon over which the loan is mathematically repaid

Interest Rate

Annual nominal rate applied to the outstanding balance

1st Position - Monthly Payment

Required monthly principal + interest payment

1st Position - Yearly Payment

Monthly payment × 12

SELLER FINANCING: $0

Amortization (years)

Time horizon over which the loan is mathematically repaid

Interest Rate

Annual nominal rate applied to the outstanding balance

Seller Financing - Monthly Payment

Required monthly principal + interest payment

Seller Financing - Yearly Payment

Monthly payment × 12

1st Position + Seller Financing
Monthly Payment

Sum of all required monthly debt payments

1st Position + Seller Financing
Yearly Payment

Monthly combined payment × 12

Rent / Month

Gross potential rent at 100% occupancy

Rent / Year

Rent / Month × 12

Occupancy

Expected average physical or economic occupancy

Expenses / Month

Operating expenses excluding debt: Taxes, Insurance, Repairs, Management, Utilities, CapEx reserve, etc

Expenses / Year

Monthly × 12

NOI / Month

(Rent × Occupancy) − Expenses

NOI / Year

Monthly NOI × 12

DSCR 1st Loan

NOI / 1st Position Yearly Payment

DSCR (1st + SF)

NOI / (1st + Seller Financing Yearly Payment)

Cashflow / Month

Cashflow / Year

EXIT ANALYSIS

Property Type

Determines valuation method. Commercial = income-based. Residential = comps-based. This is a fork in the math, not a label

Exit LTV

Maximum leverage a lender will allow at exit (sale or refi). Applied to Exit Value to determine max loan proceeds. Hard constraint. If this fails, the exit fails

COMMERCIAL

Exit NOI Monthly

Stabilized monthly NOI at exit

Total NOI Yearly

Exit NOI Monthly × 12

Exit CAP Rate

Market cap rate assumed at exit

Exit Value

Total NOI Yearly ÷ Exit Cap Rate

RESIDENTIAL

Exit Value

Expected sale price based on comps at exit