Welcome to Shepherd’s Finance, LLC, a finance company owned and operated in the United States
We borrow money on fixed rate notes which we offer with durations of one to four years. We invest most of our equity and the money we borrow in loans to home builders to construct residential homes and/or develop residential building lots, most of which are not sold at the time construction starts. Our loans are secured by the land, lots and construction we fund. While this lending is secured, it has a higher degree of risk than many other types of lending. We charge rates which reflect the risk of our lending.
Lending money to build homes is an opportunity. Lenders and investment companies are not participating in this segment of lending to the same extent they had before the credit crisis, because of losses over the last five years from this type of lending and restrictive government oversight. We believe that these lenders will be unable to satisfy the current demand for residential construction financing, creating attractive opportunities for niche lenders such as us for many years. We believe that while creating speculative construction loans is a high risk venture, the reduction in competition, the differences in our lending practices versus typical bank lending and our loss mitigation techniques will all help to make this a profitable business. It is a good time for this type of lending because the number of housing starts and the value of homes built are both low. We also believe that we are at the bottom of the housing cycle, the market has stabilized and it is likely that housing starts and values will both increase over time. Both of these items increasing should have a positive effect on our performance.
We invest most of our equity and the money we borrow in loans to home builders to construct residential homes and/or develop residential building lots, most of which are not sold at the time construction starts. Our loans are secured by the land, lots, and construction we fund. While this lending is secured, it has a higher degree of risk than many other types of lending. We charge rates which reflect the risk of our lending.
Our management has a great deal of experience with this type of lending, having created several billion dollars of loans over the last 15 years. We believe that with real estate values generally low throughout the country, now is a good time to be making these types of loans.
Our notes are not guaranteed by any government, or by FDIC, and are not CDs. We do not generally invest in government guaranteed products like some money market funds. While our investors do not have a guarantee by the government, we do offer rates which are generally higher than those of government guaranteed products of the same duration. Interested investors must read our Prospectus before investing.
Please read our Prospectus before investing. If you have questions, we welcome your call at (302) 752-2688.
Our Company views our borrowers as long term relationship customers. Here is what we offer: Loans to build spec houses in subdivisions where you are building today, appropriate loan to values based on each market, one on one service, easy process, no garbage fees, a reasonable interest rate, and a large loan fee funded by us on the first draw and paid by you when the home sells.
We generally pay subs and suppliers out of your draws to protect both you and us from liens. We do not want to be your only lending source, but rather a way to enhance your overall sales and margin dollars by having a product available for sale, rather than an empty lot.
Our ideal customer has a great deal of building experience, is building profitably on contracts today, believes a spec house could increase the total number of homes sold per year, and is currently building in one or a few subdivisions where a spec home could increase sales for that builder in the subdivision. If you think you fit our profile, and would like to develop a relationship with us, please call us at (302) 752-2688 or 30 ASK ABOUT, or email us using the contact page.