Mager Capital has been around since 2008 but was shelved in 2014 after a trifecta of tragedy. Our founder and Stephan Kachani, who built The Lone Oak Fund, were in the process of starting their own lending firm when Stephan suddenly passed away in his sleep. Mr. Mager experienced two subsequent deaths, the 2nd partner of Mager Capital & his #1 investor. Within one year, three of the closest people to him were gone. Sasha almost threw in the towel and quit the lending business altogether, but after spending six years with Rodeo Capital / Rodeo Lending & Archway Capital / Archway Fund, Mr. Mager realized the mistakes that he and many Hard Money lenders were making, which ignited the resurgence of MC.
Most private debt lenders within real estate lack diversity and/or control. The same diversity that applies to your investment portfolio should be applied to business. If you diversify your investments (Business) you are protecting your wealth against down markets and at the same time, creating a stronger platform that increases your chance at growing your investments (Business). Furthermore, if the "Lender" does not have control over their investments, they cannot maneuver quickly enough in order to stay ahead of the market trends and competition. Many funds are locked into an outdated fund structure with lending criteria that do not exist today or are too expensive to justify.
Private real estate lenders, better known as "Hard Money Lenders", forgot to diversify their businesses. So many of the lenders that jumped into this market decided that they wanted to manage a portfolio comprised of real estate debt, but did not realize that they needed to add a few other products to the business just in case the market shifts, i.e. Covid. Generally, lender's revenues are realized by servicing and origination fees but there is so much more to the "Hard Money" business.
A properly diversified real estate conglomerate can generate revenues from debt, equity, note buying, secondary market securitization, servicing, real estate holdings, property sales, fund management, equity compensation for providing debt, construction management, consulting, turn-down splits, distressed asset acquisitions, and the list go on.
Our founder was blessed with a knack for finance. He was thrown into the venture capital side of finance at a very young age and became a turn-around artist by the age of 25. He was called upon to prevent companies from folding, to stop bankruptcy, and to provide other options in a pinch. Mr. Mager worked for Coloris Capital Group in Silicon Valley, as one of their turn-around specialists, which has contributed to the success of Mager Capital today. Sasha entered the "Hard Money" lending business in 2005 and exited in 2019, only to re-enter in 2021. Mager Capital is the brand ambassador of our fast emerging conglomerate of brands, such as Mager Built, and 1 Mager Help, our non-profit organization that was established to give back.
So again, if you are surprised at our current growth rate, don't be, Mager Capital has been a well-thought-out business that stems from many years of hard work, a dedicated team, and our alignment with the experts of our industry. We are very selective with whom we do business and don't do deals just because we can or for a quick buck.
Call us anytime to discuss any deal or idea that you may have because that's how deals are made!
- LAND -
We are buying residential land that is shovel-ready or close to it. We prefer the higher-end areas like Beverly Hills, Bel Air, Brentwood, Hollywood, Encino, Tarzana, Agoura Hills, Westlake Village, Thousand Oaks, etc. We love gound up and we are not afraid of hillside builds. We have one of the best builders in LA on our team that has worked with our founder for many years.
-MULTI-FAMILY-
We are currently purchasing MF properties located in Southern California at a 7 Cap or higher. Must be 5+ units with an upside. We love high-performing MF properties in tertiary neighborhoods that need work or low occupancy MF properties that have been mismanaged.
-RESIDENTIAL HOMES-
We consistently buy houses but require a minimum of 80% cash on cash return with a floor of $200,000. If we invest $300,000 we need a $240,000 net profit to be interested in the deal.
-MIXED-USE-
We would like to diversify our portfolio to include some value-add, mixed-use assets. If you have any below-market buys with a value-add component, we may be interested.
We are currently buying in California, but will also consider other states as long as the city is a major metro area that is trending upward.
We are a cash buyer with quick closing times if needed, but we have a very thorough due diligence process so please respect our time.
Please send any purchase scenarios to our acquisitions department.
Jason Price
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