Johnson Capital Management (the Company) is seeking funding for our capital pool, operational costs and payroll. The Company provides short term (up to 60 days) transactional funding to real estate investors. Transactional funding allows an investor to buy a home and then flip that home quickly to another buyer. Our loans will be first lien. The Company assesses a fee of $395 for each loan plus 2 points. Our interest rate is simple interest of 8%.
The Company distributes 50% of profits each month to the investors providing funding for our capital pool. We anticipate a 1% to 5% ROI each month. 50% of monthly profits will be added to the capital pool to increase our lending capacity.
Johnson Capital Management is seeking $5,000,000 in initial financing. More would always be better, but 5 million is our target. We could begin operations with as little as 2.5 million but that would impose limitations in our flexibility, loan capacity and marketing and consequently decrease the ROI.