FK CAPITAL FUND is a private money lender arranging trust deed investments secured against residential and commercial real estate in California. Our combined experience in both underwriting and loan brokering gives us a distinct edge over some of the other options available to investors. We’ll prove our understanding of the industry from appreciation and depreciation trends to ‘true value’ which, at the end of the day, is best determined by the income approach.
Generally, most of our loans carry a 7% to 13% note rate and are recorded as a first or second trust deed on the property(ies) being used as collateral. All loans carry title insurance, hazard insurance, and recent appraisals and/or Broker Price Opinions (BPO). We handle the complete servicing of each loan and you have the choice of reinvesting your payments or receiving them monthly. All trust deed investments are approved investments for IRAs or other self-directed retirement plans. We do all the paperwork. Our loans are business purpose loans only, based primarily on the equity in the property, but the personal details of the borrower affect the maximum loan to value and/or the note rate.
Finding choice trust deed investments can be a tedious job and successfully accomplishing it from your standpoint can be difficult. Using a trust deed investment professional team to find, structure, buy and service the loans can lower your cost, expand the marketplace for you, lower your risk, and increase your return. Our trust deeds are structured to reduce risk in several different ways. Contrary to most existing trust deeds and notes created by seller carry-back financing, trust deeds and mortgage notes originated by FK Capital Fund are specifically structured to address issues of risk that should concern all investors in today’s economy.
FK Capital Fund saves you time, money and effort by spending thousands of dollars every month to search for these lending opportunities, sifting through hundreds of loan scenarios just to find the right deal with a high yield, structured to reduce risk and improve the safety of your investments.
The decision on whether or not to approve a loan is primarily based on the amount of equity in the property. If the property has the required equity, adjusted for the current economic environment, FK Capital Fund will then measure and analyze the borrower’s characteristics and ability to repay the loan.
On top of handling all the servicing of each loan, FK Capital will facilitate the collection and foreclosure aspect in the event of default. Our strategy for underwriting each loan greatly reduces the risk of any loss. All local, state, and national laws in regards to fees charged are always strictly followed.
The fund was formed to allow investors to participate in trust deed ownership as part of a collective pool, providing a number of key advantages over investing on an individual basis. The fund primarily purchases trust deeds (promissory notes secured against real estate) in California. The management team has a pragmatic underwriting philosophy, balancing high yield with safety in quality real estate collateral. Some of the advantages of the fund include:
Each investor owns a proportionate share of every note in the fund.
The note rate for each loan is targeted between 7% – 13%.
Each loan is secured against real estate. A lenders title insurance policy is obtained on every loan. The fund is named on the borrowers hazard insurance.
Each loan is targeted at a 65% loan to value or less (max 70% loan to value by exception).
Due to their volume and operating efficiencies, funds have access to better quality notes often not available to individual investors who are left with the scraps after funds have cherry-picked the best notes.
Hunting for quality trust deeds can be a time-consuming process for the individual trust deed investor.
Investor can choose to reinvest monthly interest payments or take a monthly income.
There is far greater liquidity than would be possible for individual trust deed investors.
The fund is able to act more quickly to secure better notes, utilize greater resources, and better manage cash flow than individual trust deed investors. This ultimately results in superior consistency in generating returns.