Non Bank Finance for Rental Portfolio

[Jesse Arriaga]

We are a Houston, TX based real estate investment business. We have identified an exploitable niche purchasing damaged / distressed houses and re-positioning them into cash flowing assets.  We are buying inexpensive houses using our cash, rehabbing them with our cash and leasing them primarily through Housing Authority Sec 8 program. These assets have no debt on them. We are looking for a Lender to Cash Out Refinance these assets with a clean First Lien. Our strategy is focused on removing risk from portfolio assets before seeking to apply leverage, which will be used to continue to grow the portfolio. 

Some of the issues we have run into are lender requirements for size of loan. Many of the assets we purchase are below the minimum threshold of lenders we have spoken to. Some on Bigger Pockets. While we have not had any of the assets formally appraised, we believe the assets will appraise much higher than our basis in them. That's what we all shoot for right? Assuming that assumption is correct, we would apply no more than 60% LTV based on appraisal and maintain a reasonable reserve account. Because the value of some assets may be below the arbitrary $75K minimum threshold we've seen in the market, we think it would make sense to bundle some assets together in a rational sized package. We believe this is ideal for a Private Lender that is not burdened by traditional bank regulations seeking an attractive yield for longer term money. With low LTV, counter-party risk minimized by Sec 8 as payee and reserve account allowing ample time to release / address turnover, this is a proven strategy.

We are seeking interest from potential lenders and advice or questions on how we can further enhance our positioning. We have a slide deck prepared for potential lenders. Final thoughts. We run our business by the numbers and believe in creating real value in re-positioning assets. In other words, we don't slap lip stick on the proverbial pig and hang a For Rent sign on it. We believe in repairing systems to lower our long term maintenance and operating cost, which also enhances the true value of the underlying assets. We believe that we are providing a public service by providing a quality housing product to a lower income clientele. We take pride in serving this niche with dignity and respect. 

We welcome all questions and expression of interest. 

Jesse Arriaga 

Managing Member

New View Investments. LLC.