JLH capital partners ( me) and 7E investments (Chris Seveney) collaborated on a loan on the West Coast.

This is were experienced direct lenders can really do well for their clients and for themselves and investors.

A developer I knew was in a situation were they needed 1.2 million to be able to get a bond to finish infrastructure for their project that was pre sold to Lennar corp for apartments and townhouses. Lennar already had put up a few million so was in senior position and would not allow a junior lender.

As we worked through it our client also had a note on the neighboring property ( first position ) that had plenty of equity coverage for us..

7E came in with their fund for 1 million JLH ( me) came in with 200k.. on a JV we took an assignment of that big note and a pay out agreement with Lennar and the developer.

WE were able to negotiate a flat rate 30% interest. the loan ended up going about 16 17 months 7E made a big hit on their 1 mil for the 7 E fund.. JLO ( me ) made a nice hit on my 200k.

And before you wonder why anyone would pay that amount keep in mind when Lennar closed my borrower pocketed about 5 mil in profit..

So would you pay 500k for a 1.2 mil loan if it got you to the finish line and a 5 mil payoff.. this project they worked on for years and never could get anyone in traditional lending space. And lucky for me Chris at 7 E is highly experienced and has worked in the development fields and understood the deal I was putting together.

So end of the day we made a loan that allowed the deal to go through our borrower made their profit on a project they worked on for half a decade. Lennar got another 200 plus units to build out and JLH and 7E made a nice return for our efforts and ability to think outside the box.