Lending Platform – Residential Properties

Industry

Financial Services / Real Assets

Company Type

Venture Capital

Location

US

Size

$11,000,000+/-

Investment Type

Equity

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Helping Great Companies Grow

Overview

High Gravity Investments (HGI) is seeking $11 million to grow its lending platform

  • Private lender that originates and services high yield senior secured debt on single and multifamily residential investment properties
  • 85 loans completed in 2018
  • Rehabbing houses since 2011
  • Since its inception in 01/18, there have been no defaults
    • Average loan size: $184,000
    • Coupon rate: 12-15%
    • Terms: 6-12 months
    • Max LTC: Typically up to 90% of acquisition
  • Annualized return in 2018 was 10.4% (unleveraged)
  • Proprietary strategy – relationships with large corporate wholesaler operations in multiple states as a referral partners to originate loans
  • Referrals from past clients and regional networking gives HGI unique and scalable customer acquisition. Cost per acquisition is less than $100 per new client
  • Led by John Amaroufi and Mike Brady – both have extensive experience in real estate lending, investment and rehab
Helping Great Companies Grow

Opportunity

  • Currently HGI is outsourcing (brokering) many of its loans through its relationships with other lenders
  • HGI has the opportunity to originate and service loans backed by single and multifamily residential investment properties
  • Few platforms have the skill set required to source, underwrite and service loans backed by these assets
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Helping Great Companies Grow

Solution/Strategy

  • Evolve from small principal platform and brokering to full in-house sourcing, underwriting, principal funding, and servicing
  • Currently offering loans in Alabama, Tennessee and Texas; plan to expand into North Carolina, Georgia and Kansas
    • Average loan size: $157,000
    • Coupon rate: 12-15%
    • Terms: 6-12 months
    • Max LTC: Typically up to 90% of acquisition
  • Loans are sourced through networking and strong relationships with wholesalers and investors throughout the United States
  • Amaroufi and Brady are both members of The Homevestors of America system, giving them immediate credibility in the marketplace and access to smaller real estate investors
  • Provide outstanding customer service and simplicity of process
  • All loans will be senior secured by a deed of trust or mortgage, depending on the state

 

  • Minimize cost per borrower acquisition
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Helping Great Companies Grow

Management

Mike Brady

Manager, General Manager of Operations

19 years in real estate finance and construction, with a focus on rehabbing residential and commercial buildings. Valued and assessed over 1,000 properties and completed over 200 rehab projects. Realtor, BPOR, RPA. Auburn University BSA Business Management and Logistics.

John Amaroufi

Manager/Servicing

17 years of financial management experience in the construction industry ranging from individual job financials to larger corporate finance. Successfully managed several large real estate development and rehab projects. CFO and President, Constructive Services Inc., LOF Homes LLC, CFO Doubleclose.net, and Housso LLC. CFM (Certified Fund Manager).

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CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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