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 from Richmond to the Tidewater region. Capital is deployed through investment funds structured for the purpose of making these loans. Investment funds retain the security interest in underlying assets and equity ownership in the fund is pro-rata to the investment size. 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 Metric
- 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 – 4%
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: 1 – 2 years
Projected IRP 12% – 13%
Line of credit provides leverage for higher return potential
Investor Inquiries
For more information on how to invest with Co-Efficiency Capital Partners fill out the form below and one of our investors will be in touch with you soon.
Apply for funding
Coefficiency provides short term financing for residential real estate development needs from Richmond to the Tidewater Region.
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Click below to learn more about our services and loan program. At Coefficiency we want to be your capital partner.