CapitalSource is a closed network investment fund
We are an invitation only fund focused on providing private real estate capital
REAL ESTATE
The security of our investments are all real estate backed with an abundant level of equity to ensure principal preservation
NETWORKS
We are geographically focused to deeply partner with our network of affiliates which provides us a significant advantage for quality deal flow
CAPITAL STRUCTURE
We are a lender of choice due to our hyper-focused lending, providing creative financing structures beyond traditional lender products
INVESTMENT PHILOSOPHY
We emphasize an opportunistic, value-oriented and risk-controlled approach to investing in these asset classes with strict maximum LTVs at funding and payoff
TECHNOLOGY
Vertically integrated, best-in-class technology enabled platform enabling a streamlined and customized experience from deal flow to funding
PARTNERSHIP
Principals are personally invested in the fund to align interests with investors
What is Private Lending?
Borrowers use private loans to buy, refinance, or to renovate real estate. The real estate property is the collateral and is the protection to the lender in the case that the borrower is not able to pay the loan.
Private lenders typically fund in the first lien position, meaning they are the first creditors to be paid in a default through a foreclosure process. Another creative financing structure is to layer a second lien note when there is ample equity.
Typcial Comparison Between Private Lending and Bank Loans
PRIVATE LOAN
Qualification: Collateral, Sponsor Experience
Paperwork: Minimal
Funding: 7 days or less
Down Payment: 25-35%
Interest Rates: 10-15%
Loan Fee: 1-3%
BANK LOAN
Qualification: Credit Score, Debt-to-Income
Paperwork: Significant
Funding: 30-45 days or more
Down Payment: 20-30%
Interest Rates: 8-14%
Loan Fee: 1%
Why Private Lenders Win
Private banks are more expensive than bank loans, yet necessary for borrowers who cannot obtain them because there is a significant gap between the traditional bank’s credit policies and a borrower’s qualification metrics.
This provides an opportunity for private lenders to command a higher interest rate
1
SPEED OF FUNDING
Borrowers need to close quickly on an opportunity or strategic business or personal reasons
2
FLEXIBILITY
Traditional bank underwriting (credit score, tax report income documentation, property restrictions, etc.) makes it difficult to obtain a loan
3
CREATIVITY
Borrowers need personalized structures and services to procure a loan program that aligns with their investment goals
CAPITAL SOURCE
Why Invest in Private Lending?
Our real estate collateralized loans offer a robust investment vehicle characterized by substantial equity coverage. This approach ensures consistent cash flows, enhanced yields, and the security of asset-backed investments. Additionally, the significant equity cushion allows for potential value capture through asset reclamation and resale, maximizing return opportunities for our investors.
CASH FLOW
Consistent, predictable cash yield from interest payments
YIELD
Typically higher yield than traditional money market investment options
DIVERSIFICATION
Non-correlated to stock, bond market or other volatile investment vehicles.
LIQUIDITY
The short-term nature of private loans allows investors for capital redemption
Our Mission, Our Values
CapitalSource’s enduring mission is guided by a set of unifying business and life principles that continue to refine
Connect with us
Although we are an invitation-only fund, we’d love to engage and build a relationship for the future.