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INVEST OR PARTNER WITH KFS CAPITAL GROUP
Due to SEC regulations, all the information on this page is to be considered informational.
If you wish to invest or partner with KFS Capital Group. Please fill in the contact us form.
What is LTV and ARV?LTV is loan to value. For example 75% LTV on a $100,000 house means that the maximum loan can be $75,000. ARV is after repaired value. This is the number that the property would be worth in perfect condition if sold today. K1 Capital Group does not project prices increasing during the time of the loan. However, if you are interested, the average increase in housing costs in Allegheny County PA is usually 3%.
Why use a note and mortgage as the security?Notes and mortages are great securities. If for some unknown reason, all the people at KFS Capital Group die simultaneously or if the loan defaults, the investor gets the house. With the LTV having a maximum of 75%, of the ARV, the investor should be able to make a profit from any default by KFS Capital Group. This is, of course, the theory. KFS Capital Group does not intend to default to test that theory. We will meet to discuss the process before we discuss the opportunities.
What types of investments can I make?Invest money only - Most popular. This is usually done with flips and historically the investors get between 9-13% returns and the money is deployed for 6-12 months. However, longer term rental investment opportunities will pop up. The interest is straight . We will meet to discuss the process before we discuss the opportunities. Joint Venture - this is a profit sharing type of arrangement. The roles vary depending upon the property and the investor's skill sets. We will meet to discuss the process before we discuss the opportunities Credit Partner - this is where the partner uses thier credit to secure the funding for a flip or a rental. This is usually a profit sharing type of arrangement but occasionally interest is also given.
My Question isn't here!Please contact us with your question. We want to address it. It may end up on this page.
What is striaght interest?By straight interest, we mean that the interest rate is set for the year. For example a $100,000 loan at 11% interest will yeild $11,000 after 365 days. If the money is only used for 6 months the invstor will get $5,500.
Is this risk free?We do not know of any investment that is truly risk free. Even stuffing money in your mattress has it's risks. The risks are reduced by the thorough due diligence done on the property and the security used. This is why we MUST meet to discuss the process before we discuss the opportunities.
What are the typical things that I would be investing in?Flip/Rehabs - obviously the most popular. Investors like the higher and less volitile rates of returns that this offers. We will meet to discuss the process before we discuss the opportunities. Rentals and Rent to Own - this is a lower interest rate but a longer term The property and market will determine the interest rate. We will meet to discuss the process before we discuss the opportunities. Transactional funding - the money is deployed for 13-36 hours and the investor enjoys getting points for their money. Least amount of time and least amount of risk. We will meet to discuss the process before we discuss the opportunities.
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