1.- Diversification




Diversification plays a huge role why considering Investing in Private Lending Funds. Fund Managers have the capabilities to diversify loans by geographical areas, and asset types (Residential and Commercial) such as Single-Family, Multi-Family Townhomes, Garden Homes, Condominium, Retail, Light Industrial, Warehouses, Self-Storage, Apartments, Commercial Plazas. Mangers will lend throughout diverse geographic areas to manage risk.




2.- Less Paperwork.




Purchase Contracts, Appraisals, BPO, Title Polices, Insurance, Survey, Flood Certificates, HOA, Phase I Report, Geo-Technical, Report, Topographic Survey, Asbestos Report, Subdivision Plat, Drainage Report, Construction Budgets, Pro-Formas, Blueprints, Floorplans, Renders, and Pictures are only some of the few items required to underwrite a loan. The list goes on and on, and to make this a bit sweeter, a good flow of deals is necessary to minimize risk.




Managing lots of paperwork can be a large operation issue for some investors




3.- Money is working 365 days a year.




By Investing in a Fund, there’s no down time between loans.




One of the most frustrating things that investors mention is that the borrower sent them back the proceeds of a loan that paid off, and then they had to go and find a new loan and start all over again.




When we analyze at the investor’s yield fractionalized over the period of a year, it’s actually quite modest, compared to a Mortgage Pool, where the money is working 365 days a year.




4.- Audit




All of our funds are CPA audited every year; that our report is sent to the investors and they get the comfort of having another professional set of eyes look at those numbers and verify the reality of them.




5.- Multiple Funs




Investors can invest on different Funds. One Fund can produce a steady cash flow to cover household needs, and a second Fund to growth (typically between 24 and 48 months). Some Investment Firms might offer both by creating a portfolio. This would allow Investors to have a great combination of steady income and growth. 




6.- Liquidity




Funds are not liquid, but because of the amounts of money coming in and going out, there usually is some cash flow to pay someone out of the fun at some measured pace.




7.- Predictable Income




Predictably income is equal to peace of mind. Investors want to know when and how much can expect either Monthly or Quarterly and that there will be no surprises. 




8.- Technology 




Fintech is highly appreciated by Investors. Nowadays is easier to get in touch with your account anywhere at any time – Technology has been a huge game changer for the Fund’s Industry, and Investors enjoying it. Information is one click away in real time. 




Have a question?




Please give us a call at 956.928.1111 or email us at invest@capitalinsiders.financial




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