Single Family business purpose lending
Since 2007 Coastal Capital has provided short-term loans secured by real estate to developers & real estate investors who purchase, rent, renovate, and resell single family homes, multifamily buildings, light-commercial properties and land. There are numerous reasons why borrowers may need liquidity (such as paying off other debt, improving a property to raise rents, difficulty for the self-employed to qualify, traditional bank timeline is to funding is to lengthy, etc.) and are willing to pay above-market rates. These loans provide investors with a consistent stream of income from interest payments while allowing borrowers to access working capital for their projects.
Welcome to Modern Real Estate Investing
Management of fund
Investors participate as a limited partner in Coastal Capital Funds. Investors receive income generated from mortgage interest which can be distributed monthly or reinvested each month. Each partner in the fund receive the followings:
- Current monthly interest income which may be re invested
- Monthly portfolio information, current and non current loans with values
- All financial information regarding fund
- Monthly Statments
- Year end recap along with a K1
- Selection of loans for fund
- Appraisal reviews
- Underwriting process
- Recording Deeds of Trusts
- Servicing of each Deed of Trust / Borrowers payments
- Past due accounts
- Foreclosure sales / marketing
- Management of properties / rentals
- Legal Fee’s
- Tax preparation
- Management fees of up to 1.5% on an annual basis.
- For other fees and disclosures please review the offering documents.
- Quick Closings
- No Out of Pocket Expenses to Note Seller
- Competitive Top Dollar Pricing
- Strong Financial Backing
- Flexible Note Buying Programs
- Customized Purchase Option in Writing
- Fair Business Dealings
Building a sound portfolio starts with thoughtful allocation among major asset classes. With Coastal Capital, you can allocate a meaningful portion of your portfolio toward commercial real estate to complement your public market investments.
The hallmark of sound investing is diversification, our low loan amounts allow you to diversify the real estate portion of your portfolio by investing across a range of borrowers, helping you manage risk while retaining substantial upside potential.
How It Works
The entire loan is not released but maybe partially funded as improvements to the property are made to reduce Coastal Capital’s risk and improve the funds return.
The borrower renovates the property, which improves the value, further protecting the loan.
Property Sold - Loan Repaid
Usually in 6-12 months, the borrower sells the property for a profit and repays the loan.
Loan Safety Net
If the borrower defaults, Coastal Capital forecloses on the property. The 35%-40% difference between the value of the property and the loan amount provides a margin of safety for Coastal Capital to recoup its principal and any lost interest and often additional profit at a foreclosure sale.
Rationale for Investment Strategy
Invest in pre-vetted projects from experienced real estate companies
Open the Door to Modern Real Estate Investment
Coastal Capital’s funds are only open to accredited investors as the term is defined by the Securities Act of 1933 under Rule 501 of Regulation D. Generally speaking an accredited investor is an individual who individually, or jointly with a spouse, has a net worth that exceeds $1 million, excluding the value of the primary residence. A person may also qualify as an accredited investor with an income exceeding $200,000, or $300,000 jointly with a spouse, for each of the two most recent years and a reasonable expectation of the same level of income in the current year.