The Safest Position in Any Real Estate Deal

So, you know, I know I'm getting some, some kind of bridge debt or hard money and it's like, you know, for this build, I'm doing an LCD and I've talked about this a little bit on the show where we're doing prefabricated manufactured homes on permanent foundations on, you know, just residential infill neighborhood.

So it's kind of a unique project.

And, but to get the type of debt, it's like, you've got to pay typically a couple of points up front and then a 10% plus maybe one of those.

It's like a kind of 12, 13%, you know, if you count points, maybe 12%.

It's expensive money, right? It's expensive money to do it.

But the reason why I'm doing it is because one time my liquidity, I've kind of got like, I don't have it all in one place.

And it's like, if I can do it quickly, I don't kind of get in and get it done.

So this is the beautiful thing about private money or even notes.

And you guys are in the first position note stage, right? So you're doing primarily kind of like your first position.

So no one else is ahead of you.

What's the loan to value typically? And what type of assets are you guys working with?

So we're very conservative lenders as a whole.

So we are very picky.

We can take a look and work with anybody.

We do have investing relationships that we do have people that will invest far higher or lend on far higher loan values.

We tend to be in the 60% loan value or below.

So I would definitely describe ourselves as conservative.

We will lend on raw land, which is unique.

Banks will not lend on raw land.

So there's always an opportunity there for us.

But the traditional properties, we have a lot of commercial warehouse space, retail shopping centers, kind of in that 3 to 10 million loan space is kind of where we thrive.

We have loans a little bit below that as well, but that's kind of the wheelhouse for us.

And by being conservative, that really protects the investors.

And that first lean position, real estate, allows us to kind of control the whole transaction.

Currently, everybody's current with us.