Investment Opportunities Secured by 1st Lien Deed of Trust in Premier Texas Real Estate

Capital Insiders Fund I’s investment objective is to generate current income by originating and/or acquiring short-term real estate loans, secured in first position, on residential and commercial investment properties across Texas.

The Fund provides investors a diversified real estate loan portfolio that generates current interest income, while placing emphasis on capital preservation, which is driven by appropriate loan-to-value (LTV) and short-term nature of the loans. The average returns for investors are between 9% and 12%.

RISK MITIGATION:

  • First-Lien Deed of Trust Only
  • Full recourse
  • 70% LTV (Maximum)
  • Lending to Proven Real Estate Investors
  • Short term loans
  • Small loan deal size ($100K – $1.5M), a very small % of the Fund
  • Lending through diverse type of properties on both, Residential and Commercial
  • We service all loans that are extended to our borrowers, so we can closely monitor asset quality

PERFORMANCE:

  • Target Returns: 10%+ net annual returns*
  • Preferred Returns: 8% net annual return*
  • Average Returns: 9%-12% net annual return*
  • Distributions: Preferred return paid Monthly, EDC paid Quarterly

Property Geographic Area Details

Texas only

Investment Type

Mortgage Fund

Target Return

9% to 12% Annually

Minimum Investment

$100,000

Lien Position

Only 1st Liens

Property Types and Loan Types

Collateral Types

  • Residential Property
  • Commercial Property

Property Types

  • Residential Investment
  • Multifamily
  • Retail
  • Office
  • Industrial
  • Mixed-Use

Loan Types

  • Purchase
  • Refinance
  • Fix & Flip
  • Rehab Value Add
  • Ground-Up Construction

Investor Types

  • Individual Accredited
  • Ultra High Net Worth Investor
  • Family Office
  • Private Equity
  • Hedge Fund
  • Pension Fund
  • Foundation
  • Endowment
  • Insurance Company

Preferred Return

8%

Leverage

Unlevered

Recapitalization

All Loans Held in Portfolio

Commitment Term

24 months

Redemption Notice Period

90 days

Distributions Paid

Quarterly

Inception Date

March 25, 2020

Fund Term

Open-End

Maximum Offering

$100,000,000

Management Fee

1.5%

Performance Split

70% Investors/30% Manager

Securities Exemption

Regulation D 506(c)

IRA Investment Option

Yes

Mortgage REIT

No

OUR INVESTMENT APPROACH

Capital Insiders was founded with a focus on capital preservation and consistent income. Our investment strategy is predicated on a value-based approach to generate constant and conservative risk-adjusted returns.

Capital Insiders’ team originates, underwrites, and services private, first-lien, commercial real estate loans to proven real estate investors, landlords, builders, and developers. Loans are secured by a diverse portfolio of real estate at a maximum loan-to-value ratio of 70%.

CAPITAL PRESERVATION
Prudent underwriting standards emphasizing cost basis with identifiable downside protection.

CONSISTENT INCOME
Investors can exercise the option for interest income paid monthly to create cash flow from their preferred senior-secured position.

DEAL SIZE
Small loans ($100k – $1.5M) are more efficient, offering attractive investment opportunities.

INSTITUTIONAL QUALITY
Audit and Accounting reports are available to our Investors at any time. – Capital Insiders exclusively works with top-tier audit and accounting firms in the US who have a comprehensive understanding of our business model. These firms have the expertise and extensive knowledge of all accounting and tax aspects of real estate investments, and commercial lending which is necessary in successfully navigating our highly regulated industry.

EXPERIENCE
Before becoming a private real estate lender, our founder, Emiliano Zapata spent over 20 years in the real estate development and construction industry. Because of his experience and insight, he has built an “Insiders” team of qualified, devoted individuals and strategic partners who are able to provide significant value to our clients and their projects. Over the years, Mr. Zapata has developed extensive market knowledge and invaluable skills in the areas of commercial lending and structured finance.

FIXED INCOME
There are four key-features to fixed income investments that make them desirable to investors:

  • Diversification
  • Capital Preservation
  • Consistent Income
  • Potentially Favorable Tax Treatment

Each feature provides a unique set of benefits that vary depending upon each Investors’ goals.

PREFERRED ALIGNMENT
Portfolio managers who are invested side-by-side with their clients, experience the same risks and reap the same rewards, however, at Capital Insiders, we take a different approach. At Capital Insiders, when it comes to a financial loss-prevention, part of our own capital serves as “first-loss”, and the investor’s capital is in a senior position. That’s what we call: Preferred-Alignment™ because we like to think that our investors deserve some level of capital protection.


FUND OVERVIEW

  • Fund Type: Reg D 506(c)
  • Investments: Private Real Estate Lending/First-Lien Deed of Trust Only
  • Asset Types: Commercial/Multifamily/Residential Investment
  • Maximum Offering: $100MM
  • Inception Date: March 25, 2020
  • Fund Term: Open-Ended (Evergreen)
  • Investor Eligibility: Accredited Investor
  • Minimum Investment: $100,000
  • IRA Investment Option: Yes
  • Option to Compound: Yes
  • Holding Commitment Term: 24 Months
  • Redemptions: 90-day Notice
  • Target Returns: 10%+ net annual return*
  • Preferred Return: 8% net annual return*
  • Average Returns: 9%-12% net annual return*
  • Distributions: Preferred Return and EDC paid Quarterly
  • EDC Split: 70% Investors/30% Manager
  • Management Fee: 1.5%
  • Fund Administrator: Third-Party Fund Administrator
  • Audit: Spiegel Accounting

* Investing in financial and real estate markets involves a substantial degree of risk. There can be no assurance that the investment objectives or returns described herein will be achieved. Past performance is no guarantee of future performance or that such investment opportunities will become available to the Fund

Capital Insiders, LLC

956-467-1787

Office Locations

Capital Insiders, LLC
6112 N. 10th Street, Suite 1C, McAllen, TX, 78504
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