OPPORTUNITIES FOR HIGHER RETURN
Our team of investors has completed over $1.5 billion in residential real estate acquisition and renovation projects.
Million Equity Investment
%
Preferred Return Collateralized Investment
Purpose of Investment
Coefficiency Capital provides high-interest “hard-money loans” to residential developers performing single-family renovations and condominium conversions in Virginia and North Carolina. Importantly, we maintain security interests in all underlying assets, and for fund owners, pro-rata ownership based on investment size. We also loan in conjunction with our other funds, which may involve debt and or equity at the same or better terms.
Funds, underwriting, servicing, and loss mitigation efforts (if applicable), are managed by Coefficiency Capital Partners, LLC.
Management Fees Charged to the Fund by Coefficiency
Loan Servicing Fees
16.7% of interest charged to developer
Initial Points
100% of initial points (majority of underwriting expenses paid by management company)
Extension Points
None. Partners in management company may invest alongside fund investors at same terms.
Default Servicing Fees
16.7% of interest charged to developer
Ownership Fund
16.7% of interest charged to developer
Underwriting Requirements and Risk Mitigation
Primary Underwriting Metric
%
70% Loan to After Repair Value (LARV)
Secondary Underwriting Considerations
- Developer experience—Minimum of 3 successful projects within last 36 months
- Personal Financial Statements & Tax Returns – Determining cash available for living expenses and construction costs before 1st draw
- Personal Guarantee regardless of financial position
- Cross Collateralization of other projects if possible
- Prohibitions: personal occupancy, leasing, or obtaining 2nd liens (investment only)
- Verification of insurance and certificate of insurance
- Field inspections required for loan draws
Typical Developer Loan Terms Section
Typical Developer Loan Terms
Interest Rate: 12%
Initial Points: 3 – 5%
Extension Points: 2%
Term: 6 Months with one extension
Default Interest After Extension: 2x
Security: First Deeds of Trust Only
Investment Terms
Pro-rata membership interest
10% preferred return (paid monthly)
$100k minimum investment
Projected full exit: 2 – 3 years
Projected IRP 12% – 13%
Line of credit provides leverage for higher return potential
Investor Inquiries
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