Capital partner
A capital partner is an investor, such as a fund, family office or institution, that provides the money behind a lender’s loans. With Lender Capital, one capital partner funds each whole loan at closing or buys a whole loan the lender already funded.
How a capital partner works
Capital partners set criteria for the loans they will fund: loan types, states, leverage, loan size, borrower experience and their target rate. A lender brings loans that fit, and the partner funds them. Arrangements range from buying loans after closing to funding them at closing through table funding.
Lender Capital is a business-to-business capital platform for private lenders: capital partners fund whole first-lien, business-purpose real estate loans at closing or buy whole loans lenders have already funded. Each loan goes only to capital partners whose criteria it fits. They see the full file before committing. For a new loan, one partner funds the whole loan at closing and the loan is assigned to that partner at closing; for a loan the lender already funded, one partner buys the whole loan. Capital partners pay no fees.
Why it matters to a private lender
A capital partner lets you close loans without tying up your own cash. With Lender Capital, you keep servicing and the borrower, keep your origination points less the placement fee, and earn a yield spread: price the note above the capital partner’s rate and the difference is yours. The partner earns most of the interest.
Example
Hypothetical. A lender closes a $600,000 bridge loan at a 12% note rate with 2 points. A capital partner whose agreed rate is 10% funds it at closing, and the lender keeps a 2% spread while it services the loan.
Compare capital sources on capital providers for private lenders.
Where Lender Capital fits
Lender Capital places first-lien, business-purpose real estate loans with capital partners. You apply once, then submit each loan with the full file. We send it only to capital partners whose criteria it fits, one partner funds the whole loan at closing and it is assigned to them. You keep your points (less the placement fee), earn the spread above the partner’s rate and service the loan. You pay a placement fee only when a loan funds.
Lender Capital is a business-to-business platform. This page is general information, not legal, tax or securities advice. Terms of warehouse lines and other funding sources vary by provider; confirm them with each provider and your counsel.