Sentell Solutions needs your help! My blood sweat and tears over the last 2 years - SS Home Solutions - is doing great things in the community and has huge potential earnings and success. BUT we currently find ourselves in a 2 month window of financial risk due to some timing errors, which were basically caused by me being super naive about how cutthroat this new world could be. I got taken pretty good, more than once, multiple ways, and am just now getting back on my feet. That is my fault and I take ownership of those decisions (and I have learned many lessons and adapted my daily strategy to wit). But the point I will try to convince you of is that my plan was and is strong, so strong that I feel confident asking my friends and family for some help in a win-win situation - to the tune of a 50% APR return for you, plus some bonus equity.... (I just ask that you please read on for my explanations before ballyhooing the investment ask based on the "ridiculously" high return).
The nuts (and bolts)...
If you are part of the first $40k in funding then I'll throw in some equity percentage as an early bird bonus. This is money I need this week and I don’t want to use the dishonest short term guys. Every $1000 gets 1 (one) "equity point" for the property of their choice (or you can split it between them). Read more on the equity here: http://www.sentellsolutions.com/equity-options
Solid The Investment
A great return:
- Commitments starting as low as $2k on up to the $100k goal.
- 50% APR starts ticking the day we sign the contract
- Bonus equity "points" for all investments - one point for the initial $2k and then another point for each $5k on top of that (forecasted value per point - $350 ). See SS Equity Options
- EARLY BIRD BONUS for the first $40k transferred to SS - see excerpt to the left.
- I am open to tweaking the structure of the investment to suit your style if you feel a change is needed.
Security in your investment:
- Solid properties with plenty of "give" in the forecasts. It's easy for a builder to be $100k off in estimates for 3 houses, but $750k estimated profit is pretty darn safe for those that worry about the houses losing money.
- Secondary lien deeds of trust are optionally available once you reach $30k commitment.
- All others will be published in an ordered list of payback based on date of investment. While technically an unsecured loan, you will receive a promissory note and a JV agreement detailing the escrow account and your payback terms.
Detailed details: 50% APR, deferred interest payments through 9 months, 3 month minimum interest paid even on early payout. Total payout is due when the first of the 2 properties sell and if needed will roll over to the next property (and if needed beyond that it will roll over to my future projects). The payout is estimated to be between 8 months and 1 year from now, and after 15 months is open to penalty points, restructuring, or escalated buyout.
The 2 properties backing your investment
..... and their costs and sales ESTIMATIONS (based on market comps and design plans). Notice the cushion we have in that estimated sales range. This also explains my willingness to provide these great rates.
I’ve heard that a few times now since deciding to go this route. In this situation, it makes a lot of sense and would make sense even if I tripled that return (actually, my last resort is to accept such a rate from some of those “short term / bad credit” guys). First of all, the term should only be around 8 months. Secondly, most hard money liens would charge 4 - 5 percentage points on the total loan value of $1.2 million, in addition to 14% interest against the much higher starting amounts. And finally, by paying around $35k to yall in interest, I am able to get back on track for the $780k payout on these 2 properties - as opposed to flat out losing them and making nothing. Pretty much a no brainer offer for me. Typical small business loans are not an option in this scenario.
….wait a second Ryan, how did you get yourself into this situation?
There’s a whole soap opera of reasons I am here at the last minute asking for some gap money. Mainly it has been due to my total lack of defenses for what is a much more cutthroat industry than I could imagine. My prior experience was 20 years in software development directing the dev and operations side of large dynamic teams. That experience is a rare advantage in my newfound passion, but it only just barely kept me alive in the uber competitive Austin housing market. I’m proud of what I’ve been through, and of the accomplishments I’ve made in spite.
I have ZERO doubt that I will continue successfully and that I will win. Partners in this investment not only get a great return for a super cool cause, but they will have the option of continued investment with me in 2019 as I roll a projected $700k profit in 2018 into three super exciting 2019 projects that are currently projecting at over $9 million in sales. Per our mission these will be a unique standard bearer of preservation and re-use/recycle combined with daringly whimsical design features that reel in the individualist home buyers.
You are part of the team...
We want to give you access to the data and our knowledge - the plans & designs, the status of the build, and the projected stats for your money. Updates are pushed weekly, but state data is always available to pull down as well. And if you are an active investor of any $$ amount, you get invited to our house closing dinner parties!
Our most recent..
2 houses on the market now at 901 Spence St - a renovation of a 1919 classic and the hip back house with rooftop deck (not pictured) and open spaces.
.. the end of this pitch is finally here (oh how I love this part of the business). Well except for a thorough and growing Q&A section for those of you who want more detail. Our focus on the restoration of older homes is super rare in the blast fast Austin environment right now. I am amazed constantly by the early century craftsmanship and artistry, and I love being able to contribute a small bit towards saving a bit of this history. My data is solid and so is my process to complete these builds successfully. Consider my offer as not only a good return on your dollar, but also a safe, secure, and potentially fun and rewarding backing of something unique and beneficial. Besides my embarrassment in asking friends for help in my big "guaranteed" venture, I want to be as up front and clear about everything as can be - and to that end I have procrastinated way too long to send this out and am up against the ropes. I'll come out swinging and will make it work as described. Where you have doubts or confusion, please email/call/text - I'm happy to walk you thought it.
Ryan Gullahorn www.sentellsolutions.com 512-750-7503 email@example.com
General status of the houses up for investment
Both are ready for framing and have the credit to carry us immediately though framing. We’ll hit the gas once we find the investment team to get us through where the draws can take over.
What permits do you already have and which are still needed?
We have the permits for both primary houses at Peoples and Upland, and we have an initial plan approval for the backhouse of upland. It can go through expedited permitting and is ready to turn over to the architect once funded (It is already trough the design phase, it just needs the official touching up).
Total debt including loans
For all the houses and operational costs, SS currently has 2 types of loan debt. The hard money loans we used for acquisition and those are described in detail with each house.
Other loans were F&F loans we picked up when we needed to accept the Spence deed as a form of payment from a former partner. Those loans were general pool and have been split into 3 categories – Operations (general SS), Spence, and Upland.
Current interest and expenses debt, loans outstanding, loand due, total debt incurred, total draws pulled, total draws left, etc...
What expenses are connected to the house now? Interest? Electric etc? Large Dumpster? Everything!
What has been done on the house so far and how much has been taken out on draws?
What follows the investment
How much $ do you need - and what would it go for - in order to get the next draw.
How much more money will you need from other investors to carry this project to completion?
Do you have a project manager who is committed to stay til the end?
I heard a 2nd lien doesn't mean anything. Doesn't it all go to the primary lender?
2nd lien - all houses that go to foreclosure are put up at auction. these houses should be well above their 1st lien amount at time of foreclosure god forbid (not gonna happen). so the 1st lien gets their amount and then the 2nd lien gets theirs. the only disaster is a foreclosure taking place in the next 2 months.
FUTURE SPENDS WILL BE IN THE FORTHCOMING EMAIL