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Feb 03, 2022
How can Lions Mane Financial continue to pay solid dividends to its investors?
One question from investors always gets asked. How can Lions Mane Financial continue to pay solid dividends to its investors? The answer is in our investor-driven business strategy that capitalizes on LMFs position in the flipping market. Let’s take a closer look.
1) Why do entrepreneurs flip homes?
- Average time to flip a home is 184 days, as opposed to 245 days for a new home
- Average time to finance a flipped home is 28 days
- Average Return on Investment (ROI) is 42-46%
- Average “flip” made $65,000 in 2020/2021
- Flipping makes up 6% of all home sales in the U.S. and growing
- 245,000 homes are “flipped” in a typical year
- The average “flipped” home has an After Repair Value (ARV) of 25-35%
2) How is Lions Mane Financial competitively positioned to capitalize on the flipping market?
- LMFs business expenses have been reduced by 50% over the 2019 to 2021 period from a high of $338,000 to $181,000. Start-up costs and better alignment of employees to responsibilities has been the major factor.
- Average loan payout rate has increased from 12% in 2019 to better than 16% in 2021.
- Average loan term has decreased from 1 year in 2019 to 6-months in 2021.
- LMFs reputation with existing and new customers is 5-star. We are lean, professional and have a best in class underwriting and legal team. Customers declare we are fair and keep our word.
- LMF managed capital has grown from $6 million in 2019 to almost $8.5 million in 2021, not including owner subordinated debt of $1 million dollars. Lions Mane Financial is one of the only companies in this space who would absorb the first $1 million dollars in losses. Can your current investment company say the same?
3) How does investing in Lions Mane Financial work?
- LMF offers set dividend rates based on current market conditions.
- Notes outstanding today can be redeemed with 6 months’ notice.
- Rates offered to individual investors are based on government rates in place at the time of issue and the size of the investment. Historically, notes payout between 8-10% (5-year historical lookback).
- Our minimum note offered is $50,000.
- Dividends can be received monthly or reinvested. We are approved to participate in self-directed IRA’s and notes are registered with the SEC.
Your investment and managing your money is the single most important goal we have. We are proud of the work we have done with our borrower and investor teams.
Please check us out. We are a Veteran Owned Company and proud of it!
Mark P. Andreotta
Lions Mane Financial aka Hard Money2Go