Direct capital placement
Direct capital placement matches a lender’s individual loan with a capital partner that funds the whole loan at closing, instead of the lender funding it from a credit line and selling it later.
How direct capital placement works
The lender underwrites a loan and submits it before closing. The loan goes to capital partners whose criteria it fits; one reviews the full file, commits and funds the whole loan at closing, and the loan is assigned to it at closing. This is table funding, organized loan by loan.
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. Direct capital placement is the first of those two paths. It covers bridge, fix-and-flip, ground-up construction and DSCR rental loans. Lenders apply once and are reviewed on track record, underwriting and licensing. Lender Capital is not a lender, fund or investment adviser, and it never lends or buys loans with its own money; capital partners fund or buy the loans. For a loan you already funded, see sell your loans.
Why it matters to a private lender
There is no warehouse line, haircut, margin call or dwell limit, because you never carry the loan. You still earn: you keep your origination points less the placement fee, and you earn a yield spread between the note rate you set and the partner’s agreed rate. You keep servicing and the borrower relationship. The placement fee is paid at closing from the points, only when a loan funds.
Example
Hypothetical. A $500,000 loan at a 12% note rate with 2 points is placed with a partner at 10%. The lender’s $10,000 in points less a $5,000 placement fee leaves $5,000 at closing, plus a 2% spread, about $10,000 a year, while the loan is outstanding.
See the full model on table funding and the lender spread calculator.
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.