Housing Investors, LLC

During the depths of the recession, conventional construction financing all but disappeared.

Housing Investors, LLCSo, still building and in need of construction financing, we created our own captive private equity construction lending fund. Really, it was quite simple, the private equity entity would make short term construction loans to our development entities and then sell participations in the loans to investors. Each loan would be secured by a first deed of trust against a specific property and 100% of the loan proceeds would be applied to improving that specific property. The loan to value ratios were relatively low.

We find our investors are excited about the solid returns, simplicity of the structure, funds being segregated and dedicated to a specific property, well defined collateral and low loan to value ratios.