OPPORTUNITIES FOR HIGHER RETURN

 

Our team of investors has completed over $1.5 billion in residential real estate acquisition and renovation projects in the Washington DC region.

Million Equity Investment

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Preferred Return Collateralized Investment

PURPOSE OF INVESTMENT

Carstensz Capital provides high interest “hard-money loans” to residential developers performing single-family renovations and condominium conversions in the Washington, DC metropolitan area. 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 Carstensz Capital Partners, LLC.

MANAGEMENT FEES CHARGED TO THE FUND BY CARSTENSZ

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

Split with fund 50/50

Default Servicing Fees

16.7% of default interest and fees charged to developer

Ownership in Fund

None. Partners in management company may invest alongside fund investors at same terms.

UNDERWRITING REQUIREMENTS AND RISK MITIGATION

Primary Underwriting Metric

70% Loan to After Repair Value (LARV)

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LARV

Secondary Underwriting Considerations

1. Developer experience—Minimum of 3 successful projects within last 36 months

2. Personal Financial Statements & Tax Returns – Determining cash available for living expenses and construction costs before 1st draw

3. Personal Guarantee regardless of financial position

4. Cross Collateralization of other projects if possible

5. Prohibitions:  personal occupancy, leasing, or obtaining 2nd liens (investment only)

6. Verification of insurance and certificate of insurance

7. Field inspections required for loan draws

TYPICAL DEVELOPER LOAN TERMS SECTION

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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

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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 Carstensz Capital fill out the form below and one of our investors will be in touch with you soon.

Investor Inquiry