STOCKBRIDGE FINANCIAL CORP. OVERVIEW
Stockbridge Financial Corp. is a mortgage real estate investment company which provides loan generation, analysis and servicing of commercial real estate loans. Our principal business objective is to generate net income for distribution to our investors from the spread between the interest income on our mortgage loan products and the costs of servicing these assets. Stockbridge Financial Corp.’s principal investment product is Bridge Loans. Bridge loans are short term, higher interest rate loans to borrowers who are improving properties for sale or permanent financing. Bridge loans offer high returns along with a first position lien on secured real estate.
All of our loans products are subjected to vigorous underwriting criteria. Appraisals, tax returns, bank statements, and credit reports are among a few of the items we require from our borrowers. In addition, we independently verify the value of the properties by pulling comparable sales in the area. Many of the loans presented to us are turned down before they are presented to our investors. Only loans which meet our strict standards are presented to our investors.
INVESTMENT BENEFITS AND TERMS
Investment Returns: 14% and up
Security: First position lien on real estate
Minimum Investment: $10,000* (depending on the investment vehicle)
LOAN TERMS
Property Types: SFR, Row homes, Office, Multifamily, Industrial
Term: Three months to three years, with extension options
Loan Rates and Fees: 14% - 18%, 2pts - 10pts
Target Loan Amount: $40,000 - $300,000
Amortization: Interest-only
Prepayment: None
Loan to Value Ratio (LTV): Maximum 70% of appraised ARV value
Collateral: First position mortgage on commercial real estate only
EXAMPLE INVESTMENT RETURNS
$50,000.00 Investment Rate: 12% ($500.00 per mo.) Return: $7,000.00 / 14% return |
$100,000.00 Investment Rate: 12% ($1000.00 per mo.) Return: $14,000.00 / 14% return |
These returns are based on a one year loan at 16% with 6% closing fees.
STOCKBRIDGE FINANCIAL CORP. THREE YEAR LENDING HISTORY (2004-07)
Loan Amount Totals $5,624,850.00
Loan Number Totals 71
Default Rate 0%
Losses/Gains from Defaults N/A
TWO WAYS TO INVEST
Stockbridge Financial Corp offers our investors two distinct investment options. Stockbridge Financial Corp handles the full servicing of the loans for either type of investment.
DIVERSIFICATION INVESTING
Investors may choose to invest directly into any one of the loans in Stockbridge Financial Corp’s portfolio. Investments can be for as little as $10,000.00 and the investor may pick and choose between new loans as they become available, balancing the pro’s and con’s of each loan for themselves. Stockbridge Financial Corp. guarantees all of the investor’s funds. These loans are owed by Stockbridge Financial and generally are funded through separate lines of credit. The investor is in a subordinate position to these lines of credit.
Advantages of Diversification Investing
Diversification: The risk to the investor’s funds is spread out over a number of loans as the investor may place their funds in installments of as little as $10,000.00 over a number of loans of their choosing.
High Returns: The investor receives a set 14% return.
Monthly Income: The investor receives a monthly check at the 14% rate.
Stockbridge Guaranty:Stockbridge Financial Corp takes its money out last for any loan investment.
With Diversification investing, the investor, Stockbridge and one of Stockbridge’s lenders all participate in a portfolio of loans. As the loans which the investor chooses to participate in pay off, the parent lender and the investor receive their funds out first. In effect, Stockbridge subordinates its position to both the investor and the parent lender.
Minimum Investment: $10,000
No Additional Costs:Stockbridge Financial Corp handles any unforeseen costs associated with the loan.
DIRECT OWNERSHIP INVESTING:
Advantages of Direct Ownership Investing
Ownership: The investor purchases the loan outright and retains 100% ownership.
High Returns: The investor receives a minimum 14% return.
Ability to Choose: The investor may pick and choose from any loan Stockbridge Financial Corp generates.
Monthly Income: The investor receives a monthly check.