Quote from @Beth Johnson:
@Travis Mullenix
I haven't but wanted to know if you have had experience in private lending before? If not, you will want to be sure to define your own deal preferences and risk tolerance. Some hard money lenders lend at pretty high LTVs, leaving little equity buffer to protect your principal. Other KPIs and considerations you should evaluate when talking to any lender who offered private placement of loans/notes are historic default rate, how quickly they can place your funds (do you get preference over their income funds, for example), average interest rate - borrower note rate and what is passed through to you, are loans serviced by a 3rd party servicer or in house. There's a lot more but I thought I would share a few thoughts, in case you haven't had previous experiences investing with a lender.
A few notes on your comment to this aged post thread to shed some additional light since you don't know much about us...
Aloha Capital has funded over 3,000 loans since 2015 on nearly 1 billion of residential investment properties and to date has ~ 0.4% default rate. We filter thousands of loans each year and underwrite, close and fund hundreds of those per year. We are a long-time partner and supporter of the BP community.
Our short-term residential investment property loans are typically 60-80% LTV and all are personally guaranteed by the borrower(s) -- we pull credit, background and PFS on each guarantor, verify experience, verify liquidity, underwrite the property, neighborhood and zip code. We verify project feasibility and construction scope; and use 3rd party valuations and internal data to verify the as-is and subject to value.
Investors can invest through 3 paths where investors capital is deployed immediately and stays deployed.
1) Our unlevered debt fund that targets 7-9% return with a liquid portfolio and quarterly liquidity. BTW- it has a 10 yr track record.
2) Our opportunity debt fund with two classes. An 8% protected preferred return or a 10-12% target return.
3) Our passive note platform (Swell.investments) has yield from 8-20%. these are loans we have already originated and are available right now and we are happy to keep vs. matchmaking or crowdfunding where you only get to invest if the marketplace collects enough investor dollars or the matchmaker has a deal ready to fund (what you call whole trust deed investing). Since our Swell platform's participations have a $25K minimum or $10K minimum if you invest $100K or more, you could invest into up to 10 projects with $100K vs maybe one whole trust deed investment. This also lets investors manage maturity dates, guarantor exposure, market exposure and other factors.
We service loans on our balance sheet and manage construction draws for all loans we originate.
I am happy to answer any additional questions or provide additional insights. If your new debt fund needs assets to invest into, let me know -- we have them :)
@Beth Johnson: A few notes on your comment to this aged post thread to shed some additional light since you don't know much about us...
Aloha Capital has funded over 3,000 loans since 2015 on nearly 1 billion of residential investment properties and to date has ~ 0.4% default rate. We filter thousands of loans each year and underwrite, close and fund hundreds of those per year. We are a long-time partner and supporter of the BP community.
Our short-term residential investment property loans are typically 60-80% LTV and all are personally guaranteed by the borrower(s) -- we pull credit, background and PFS on each guarantor, verify experience, verify liquidity, underwrite the property, neighborhood and zip code. We verify project feasibility and construction scope; and use 3rd party valuations and internal data to verify the as-is and subject to value.
Investors can invest through 3 paths where investors capital is deployed immediately and stays deployed.
1) Our unlevered debt fund that targets 7-9% return with a liquid portfolio and quarterly liquidity. BTW- it has a 10 yr track record.
2) Our opportunity debt fund with two classes. An 8% protected preferred return or a 10-12% target return.
3) Our passive note platform (Swell.investments) has yield from 8-20%. these are loans we have already originated and are available right now and we are happy to keep vs. matchmaking or crowdfunding where you only get to invest if the marketplace collects enough investor dollars or the matchmaker has a deal ready to fund (what you call whole trust deed investing). Since our Swell platform's participations have a $25K minimum or $10K minimum if you invest $100K or more, you could invest into up to 10 projects with $100K vs maybe one whole trust deed investment. This also lets investors manage maturity dates, guarantor exposure, market exposure and other factors.
We service loans on our balance sheet and manage construction draws for all loans we originate.
I am happy to answer any additional questions or provide additional insights. If your new debt fund needs assets to invest into, let me know -- we have them :)
Kevin Hill
CEO - Aloha Capital
