FRACTIONAL REAL ESTATE LOAN PROGRAM: BE THE LENDER!
Transacting in fractional real estate through Capstone Capital Partners allows you to reap the benefits of “being the lender” without the hassle. We vet the borrowers, originate loans, and service those loans so you don’t have to. As borrowers make interest payments, you earn returns.
350+
Number of loans funded
$500M
In loan volume
8-10%
Target Yield
QUICK OVERVIEW
Primary Focus | Secured real estate debt via asset-based lending
Target Yield | 8-10%
Typical Investment Amount | $100K to $500K per loan
Distribution | Paid monthly
Commitment Period | 12 to 24 months
Tax Reporting | 1099
Acceptable Funds | Qualified: traditional IRA, Roth IRA, etc. Non qualified: cash
Transparency | Easy online access to your entire portfolio
Suitability | Accredited, Texas-based lenders only
HOW OUR FRACTIONAL REAL ESTATE
LOAN PROGRAM WORKS
In the world of real estate, fractional ownership allows investors partial ownership of a loan. “Fractional lending” occurs when an investment firm or platform uses the investor’s funds to lend to mortgage borrowers. As the mortgage borrowers make their interest payments, the lenders earn a return. Once the property is sold or refinanced, the lender recoups their principal.
As you consider loan opportunities with Capstone, you’ll receive a complete loan summary detailing all aspects of the borrowers and properties. Once your decision is made, funds are transferred to a bonded and insured title company. At closing, your funds are fully secured and collateralized by a first lien (also known as a deed of trust). Standard protections include title insurance, hazard insurance, and a promissory note personally guaranteed by the borrower.
Check out more FAQs
WHAT ARE TRUST DEED (FIRST LIEN) INVESTMENTS?
A trust deed (also known as a first lien) is a legally-binding document that records the lender’s name on the very title of a real estate property. It’s a security instrument for the lender. The largest risk entailed with trust deed loans is foreclosure. However, first lien holders are prioritized and accelerated in recouping their funds in the rare instance of a foreclosure.
Read more about trust deed investments
BENEFITS
Investors partner with Capstone as fractional lenders for many reasons:
Control. Unlike investing in a fund, investors can select individual properties and locations they believe in most. For example, one investor may desire to allocate more into land deals in one metro area, while another sees great potential in commercial deals in another metro area.
For an even more passive approach, explore the Capstone Growth Fund (a private debt fund).
Reliability. As a first lien holder, fractional real estate loans provide a level of security that stocks and mutual funds simply cannot match.
Tangible ownership. Fractional ownership is a great opportunity for those wanting to preserve hard-earned capital with physical assets they can see and touch. In a world of stock market bubbles and unsecured crypto currencies, real estate remains strong.
View our sample portfolio for a snapshot of the kinds of Capstone properties investors can own.
CAPSTONE’S LENDING CRITERIA
Investors want to know their capital is safe. Capstone Capital Partners protects itself and its investors with standardized lending criteria for every project. In addition to the following typical criteria, a borrower’s real estate experience is highly considered. Many of our borrowers are repeat, long-term clients.
Typically below 70% LTV
12-36 month loan terms
Conservative and carefully reviewed construction draw schedules
Title and hazard insurance are included with every loan
Learn more about borrowing from Capstone Capital Partners.
ABOUT CAPSTONE CAPITAL PARTNERS
Since 2012, Capstone’s mission has been centered on making real impacts in our communities while prospering together and serving others through charity. We are honored to see this mission come to fruition with investors like you.
Our combined experience sports over $500M in loan volume through both traditional and private lending. With funding, originations, and servicing all in house with Capstone, our clients are afforded smooth and seamless transactions.
Read more about our team
Read client testimonials
OWN ASSETS YOU BELIEVE IN – GET IN TOUCH!
Peace of mind: it’s what every investor is after. With Capstone, your investment is protected by a team of seasoned professionals. Invest in real assets you can see and understand. Get more information, set up a call, and meet in person.
DISCLAIMERS
INVESTORS: For accredited investors only. The statements contained in this website do no not constitute an offer or sale of any securities of Capstone Capital Partners (the “Company”). Prospective investors are advised to carefully review the Company’s private placement memorandum, operating agreement and subscription documents (“Offering Documents”) and to consult their legal, financial and tax advisors prior to considering any investment in the Company. Sales of any securities will only be completed through the Company’s Offering Documents and will be made to Investors who meet certain accredited investor standards. Past performance is not indicative of future returns or Fund results. Individual investment performance, examples provided and/or case studies are not indicative of overall returns of the Company. In addition, there can be no guarantee of deal flow in the future. Forward looking statements are not statements of historical fact and reflect the Company’s views and assumptions regarding future events and performance. All forward-looking statements address matters that involve risks and uncertainties.
BORROWERS: Capstone Capital Partners, LLC (Capstone) is a private lender in Texas; however, Capstone is not a Texas Licensed Mortgage Broker. Per the Texas SAFE act, loans made to purchase and rehab properties with the intent to resell and loans to acquire rental properties are for business purposes, not personal, family or household use, and are not subject to licensure under the Texas SAFE Act. Capstone does NOT lend on Homestead loans and only funds investment loans in Texas.