What is your current company called? I'd like to check it out.

Here are the three primary companies.

Saturn Equities - Our new Syndication Firm
Texas Real Estate Fund Managers - Our Fund
Quick Lending - Origination Company

I apologize for all the edits, trying to learn texags linking.

Great story and will look into your companies.

mwp02ag said:

---

Freakin awesome story, I'd love to have a conversation with you. Mind shooting me an email at figtreehomessa@gmail.com to see if there is anyway I can help you?

---

Thanks for the kind words, call me anytime. Email sent

Bert315 said:

---

Great story and will look into your companies.

---

Thank you sir!

Lifestyles Unlimited is 1, been around over 30 years. Education/mentoring program that has grown to national prominence.

Total Wealth Academy is another, started by someone who left Lifestyles. He got into doing storage & commercial, stuff LU doesn't do.

Good luck!

Yes, I am very familiar with Lifestyles and Total Wealth. Their style isn't what I am looking for. I'm looking for something more communal not mentoring. They are, for a lack of a better word, particular about how business is done within the group.

I'm in a couple of investing clubs, useful for shared due diligence and an occasional SPV. There is unquestionably a bias towards experienced sponsors with a verifiable track record.

I looked at the pitch deck for the San Marcos property. Is that typical of the deals you currently have? Some quick notes, so I apologize if I overlooked anything. I didn't see a waterfall mentioned or anything about how much the sponsors are personally investing? The other sponsor team has skins on the wall in business, but lacks multi family experience and with other prominent jobs it looks like this is a side business for them. Fixed rate debt is good at this time, but no mention of the term of the debt, purchase comps, or purchase/disposition cap rates? Since it wasn't a true arms-length transaction how did the purchase price get decided upon?

On your HML fund, what rates are you quoting borrowers and at what LTC or LTV? Any defaults, or distressed loans? How do you source and vet your borrowers? Do you have any fund-level leverage, and what is the net to investors?

Business Time said:

---

I'm in a couple of investing clubs, useful for shared due diligence and an occasional SPV. There is unquestionably a bias towards experienced sponsors with a verifiable track record.

I looked at the pitch deck for the San Marcos property. Is that typical of the deals you currently have? Some quick notes, so I apologize if I overlooked anything. I didn't see a waterfall mentioned or anything about how much the sponsors are personally investing? The other sponsor team has skins on the wall in business, but lacks multi family experience and with other prominent jobs it looks like this is a side business for them. Fixed rate debt is good at this time, but no mention of the term of the debt, purchase comps, or purchase/disposition cap rates? Since it wasn't a true arms-length transaction how did the purchase price get decided upon?

On your HML fund, what rates are you quoting borrowers and at what LTC or LTV? Any defaults, or distressed loans? How do you source and vet your borrowers? Do you have any fund-level leverage, and what is the net to investors?

---

BT,

Would love to learn more about the clubs as that really was the point of the post.

I'll try to answer the next set of questions best I can with limited information. I'm not sure who I am addressing, but you are obviously familiar with us outside of this post as San Marcos closed last year on a tight deadline to close before year-end for 100% bonus tax depreciation and we slapped our Investment Thesis over the pitch deck that was provided to us by the sponsors and raised our allotted $2.75MM in a few days. I agree that there wasn't much substance provided there so thank you for your questions.

Our latest package has more from the operator included and we will continue to improve our marketing as grow. Specially, San Marcos was a 52% all-in leverage deal with 10% pref to investors prior to any distribution. The debt is fixed at 4.25% and expiring in 2029. This is in the package but probably should be more pronounced. To answer the next set of questions, our resident MAI pulled historical cap rates as well as purchase comps that we in turn used to verify their underwriting assumptions. The new operator was able to purchase at the price he dictated, basically getting the old operator, who was severely undermanaging the deal, out of the way and protect his investment. I'd love to catch a call with you to go in depth over all the answers to the questions you have presented. Shoot me an email to jbehanick@saturnequites.com with your phone number and let's chat.

For the HML fund, we are currently quoting borrowers 13% at 70/90 LTC/LTV or better. We have very little defaults or distressed loans and actively work with our borrowers on any viable solution in a work-out. To date our fund has zero foreclosures, but that's not realistic into perpetuity. Deal sourcing at this point is mostly word-of-mouth and existing clients. We do have fund level leverage up to 75% of the underlying note (our lead banker has probably read this post). Net to Investors is currently ~12ish% paid quarterly and most of our investors elect to rollover distributions heightening their returns.

I hope this was helpful and thank you for taking the time to dig so deeply into the deal.

JamesBREI06 said:

---

Business Time said:

---

I'm in a couple of investing clubs, useful for shared due diligence and an occasional SPV. There is unquestionably a bias towards experienced sponsors with a verifiable track record.

I looked at the pitch deck for the San Marcos property. Is that typical of the deals you currently have? Some quick notes, so I apologize if I overlooked anything. I didn't see a waterfall mentioned or anything about how much the sponsors are personally investing? The other sponsor team has skins on the wall in business, but lacks multi family experience and with other prominent jobs it looks like this is a side business for them. Fixed rate debt is good at this time, but no mention of the term of the debt, purchase comps, or purchase/disposition cap rates? Since it wasn't a true arms-length transaction how did the purchase price get decided upon?

On your HML fund, what rates are you quoting borrowers and at what LTC or LTV? Any defaults, or distressed loans? How do you source and vet your borrowers? Do you have any fund-level leverage, and what is the net to investors?

---

BT,

Would love to learn more about the clubs as that really was the point of the post.

I'll try to answer the next set of questions best I can with limited information. I'm not sure who I am addressing, but you are obviously familiar with us outside of this post as San Marcos closed last year on a tight deadline to close before year-end for 100% bonus tax depreciation and we slapped our Investment Thesis over the pitch deck that was provided to us by the sponsors and raised our allotted $2.75MM in a few days. I agree that there wasn't much substance provided there so thank you for your questions.

Our latest package has more from the operator included and we will continue to improve our marketing as grow. Specially, San Marcos was a 52% all-in leverage deal with 10% pref to investors prior to any distribution. The debt is fixed at 4.25% and expiring in 2029. This is in the package but probably should be more pronounced. To answer the next set of questions, our resident MAI pulled historical cap rates as well as purchase comps that we in turn used to verify their underwriting assumptions. The new operator was able to purchase at the price he dictated, basically getting the old operator, who was severely undermanaging the deal, out of the way and protect his investment. I'd love to catch a call with you to go in depth over all the answers to the questions you have presented. Shoot me an email to jbehanick@saturnequites.com with your phone number and let's chat.

For the HML fund, we are currently quoting borrowers 13% at 70/90 LTC/LTV or better. We have very little defaults or distressed loans and actively work with our borrowers on any viable solution in a work-out. To date our fund has zero foreclosures, but that's not realistic into perpetuity. Deal sourcing at this point is mostly word-of-mouth and existing clients. We do have fund level leverage up to 75% of the underlying note (our lead banker has probably read this post). Net to Investors is currently ~12ish% paid quarterly and most of our investors elect to rollover distributions heightening their returns.

I hope this was helpful and thank you for taking the time to dig so deeply into the deal.

---

Personally, these deals are not for me, so I do not want to waste your time going over the specifics. I meant those to be more of just some of the initial questions that they'll want addressed before having further discussions.

Thanks

Understood completely. Would you mind pointing me in the direction of your investment clubs? Thanks

Great story of success. Interested. Will check these out

I appreciate the kind words.

Can confirm James is a good dude as we've co-loaned a hard money loan before (he's too big time for me now).

Interested, I would like to take a look too.

Rev98 said:

---

Interested, I would like to take a look too.

---

Rev, shoot me an email at jbehanick@saturnequities.com



Thanks!

BT is spot on with some of the questions mentioned. And those are just a start. I have a whole list of criteria that must be met before I even consider a phone conversation with a sponsor.

You keep mentioning "clubs." There are Investor Masterminds you can join, but they will cost you. I'm no tax advisor, but your entry fee can most likely be 100% deducted as tuition/consulting. Some are $15k and some range up to $100k annually. Most have an application and interview process to be accepted. You mention clubs, but I think this is what you're looking for. You are paying for access to high level investors, knowledge, and opportunities.
Search for Investor Masterminds.