CONCORD, Calif., April 18, 2017 /PRNewswire/ — New, more stringent banking regulations and strong demand from developers for construction projects are preventing banks from funding capital requests.
“There is a strong need for capital for many projects that banks cannot fulfill,” says John W. Simonse, President of LHJS Investments LLC, and one of the Managing Members of Lodgepole Fund No. 1 LLC. Simonse went on further to explain, “Banks have very stringent guidelines and reams of paperwork to be filled out. Due to the overregulation of banks today many great projects cannot get funded by a bank.” Mr. Simonse, who has been a successful real estate lender, investor, and developer for nearly 40 years, goes on to say, “Lodgepole Fund fills an important niche that allows these good projects, that banks can’t lend on, to be built by using private money real estate loans.”
About Lodgepole Fund #1 LLC and LHJS Investments LLC
Lodgepole Fund No. 1, LLC has been providing construction and development loans to builders and developers in California since 2010. Lodgepole specializes in providing construction loans for high-end residential homes. LHJS Investments LLC has been in the real estate advisory and fund management business since 1999.
Why Lodgepole Fund is a win-win for everyone involved
“Lodgepole Fund is a win-win for everyone involved,” Mr. Simonse states, “the Builders and Developers get much needed capital and the investors in the Fund make a very secure return of 10+ percent on their investment. The borrowers can also get their money fairly quickly. Although the loans are strictly underwritten, there is not a lot of red tape, like at a bank.”
Mr. Simonse continues, “I personally don’t think there is a better investment than this. Making a net return of 10% on your money, that is also secured by a deed of trust on real estate, is the best investment there is. I don’t think there is any other investment available where your money is as secure and makes that high of a return. If there is, then I would like to know what it is.”
What makes Lodgepole Fund loans safe
When asked what happens when real estate values go down, Mr. Simonse states, “When LHJS Investments LLC underwrites a loan, we make sure that the loan-to-value is safe for the type of loan we are funding, which is usually about 65% LTV for a one year term loan.
“By keeping loan LTV’s low and loan terms short, we are able to follow the market fluctuations up, as well as down, eliminating long term market risk. Also, with appraisal and loan underwriting as strict as they are now, it would be highly unlikely to experience the level of foreclosures that occurred in the past, which would make a market drop of 35% in one year highly unlikely. ” As an extra precaution, Mr. Simonse adds, when LHJS Investments LLC underwrites a loan, it will only approve loans in areas that have historically strong property values. “We do not approve loans in areas that have historically exhibited large value fluctuations, such as cities that have a high concentration of vacation homes.”
How do you apply for a loan or invest in Lodgepole fund?
“To apply for a loan you can call Ashley Nelson, our construction loan supervisor,” says Mr. Simonse. “Ashley has been with the company for 10 years now and is very well-versed in all aspects of construction lending.”
Asked how an individual could invest in Lodgepole Fund, Mr. Simonse stated, “Right now the Fund is closed to new Members. However, we will be looking at raising new capital this summer.
“If you would like to invest in the Fund please contact me and I can put you on our list of potential investors. We can only accept accredited investors though,” advises Mr. Simonse.
John W. Simonse
Lodgepole Fund #1 LLC
SOURCE LHJS Investments LLC
by David Spader
Millions of Americans move house every year, and that frequently means finding a new bank/credit union. The problem of finding a good bank has been more difficult since the Great Recession started in late 2007. The federal government has shut down hundreds of insolvent banks since that time, and continues to do so. Here are some things to look for when choosing a bank or credit union.
The most important thing is FDIC insurance, should the bank become insolvent. The FDIC has always paid insured account holders within 30 days of seizing a bank. State chartered banks and credit unions may or may not be insured. Ask before you open an account.
Fees can add up to a small fortune very quickly if the bank charges for every little service. Look for banks that offer free checking, free checks, no minimum balance and no fee for using a teller inside the bank. Especially check into their ATM fees. Some banks tack on a surcharge for using an ATM outside of their network, and this is in addition to the fee paid at the ATM. Additionally, some banks charge to mail a paper statement or photocopies of your canceled checks.
Savings interest rates are at historic lows, hovering at around one percent. Credit unions usually offer a higher interest rate than banks. Find the best interest rate for the amount of money you plan to invest, but make sure that you can do without the money for the required period of time. For example, you may earn two percent higher interest on a five-year certificate of deposit, but there will be significant penalties if you need the money before maturity.
Lending policies are another thing to look for when choosing a bank or credit union. If you plan to buy a home, then you want a bank that makes the mortgage process easy and without excessive loan origination costs. If you have slightly damaged credit, which is common with the current economy, then choose a bank or credit union that services this type of customer.
Make sure that the bank or credit union offers the services you need, such as a safe deposit box, online banking and bill pay, the ability to transfer money from one account to another over the phone, and overdraft protection. Also, if you are paid through direct deposit, ask the bank if they allow immediate access to the money.
The website, Bankrate.com, lists the health of hundreds of banks and credit unions throughout the country. Use this data to immediately eliminate problem banks and hone in on the healthier ones in your neighborhood.