Real Estate Development and Private Money Lender
It has been a number of years since I attended high school economics. I won’t name how many, so don’t try to guess. Back then, even in an Advanced Placement class, I think I could categorize the number of topics I learned into about eight varieties: cost-benefit analysis, trade, exchange and interdependence, macroeconomics (as it pertained to business cycles and public debt), the benefits of trade and foreign markets, and some matters pertaining to personal finance.
In the years post-high school, some delve deeper: econ majors or those looking to get into the real estate markets - those running into questions regarding their IRA, 401k, or others starting an investment portfolio. Some, like those taking advantage of a partnership with our friends at KS Capital Inc., are looking for entry into real estate as an alternative investment, specifically, investment in the development of single family homes in established coastal development markets like Santa Monica, West LA, Newport Beach and Corona Del Mar, and seeing more than just palm trees and sun tans.
KS Capital is a full service Real Estate Development company and Private Money Lender. With target loan offerings between $100K- $3MM, with 6 month- 3 year terms, it is no longer just the uber-rich looking to capitalize on real estate development opportunities. These are smart investments in established areas, with consistent, risk-adjusted returns. And, as more and more neighborhoods surrounding their target investments engage in large-scale development, KS Capital’s conservative Loan-to-Value ratios result in an even greater equity cushion for your investment- “Investors have the ability to self-select those trust deeds in which they would like to invest. As a result, investments in trust deeds provide investors with the opportunity to earn 8%- 12% fixed annualized returns, collateralized by a lien position on the subject property and a conservative loan-to-value cushion to help preserve the investor’s principal investment against market fluctuations," says Grant Keene, Vice President KS Capital.
Ten years in the making, the professionals at KS Capital have focused their energies on sponsoring the speculative development of mid-level luxury homes and placing private money loans on development opportunities and other commercial real estate opportunities. Searching out real estate in prized markets such as Santa Monica and Newport Beach, KS Capital is looking to capture healthy pent-up demand from those “hungry for new housing in an otherwise old and dated coastal market." So what can a client of KS expect? “We do 100% of project work, making this a passive investment and process for our investors,” says Keene.
In conjunction with first trust deed investments, KS Capital Inc. Offers equity partnerships in development opportunities, in which the principals at KS Capital handle all of the legwork in an equity partnership, and clients can expect a 50% of net project profits split - which equates to all acquisition costs, project building costs, carry costs, soft costs and debt service. The sponsor, or developer raises all capital required and splits profits 50/50 with no other fees or compensation. And, KS will prospect, analyze and acquire the lots - complete all design and entitlement, approve architectural designs, and process every step through city project managers. Tim Mickey from US News notes that such alternative investments in real estate can help to “smooth out the ride from these volatile markets and add a little potential income to allow you to continue to diversify.”
Individuals who wish to partner with KS Capital can rest easy, knowing that they “work to generate strong returns, while striving to preserve the invested principal.” Looks like your investment horizon just got a little brighter.