Frequently Asked Questions
What is the Minimum Investment Amount?
$100,000
What is the Maximum Investment Amount?
2 Million
I have never invested in the Real Estate Industry before. What do I need to know and how are these types of investments different?
Capstone Funds invest in 1st position loans to people who are fix and flipping houses or have rental property. We do not take on the risk of being a property owner. We also do not have the same risk of falling real estate prices as an owner. Conversely, we also do not benefit from any real estate market appreciation. A loan on a property acts much like an annuity, earning monthly interest with real estate collateral as our security.
After investing, how often will I hear from Capstone? What updates will I receive?
Capstone sends out monthly video newsletters to all our investors and whoever else is interested. These newsletters are very informative and will undoubtedly be the highlight of your day. (or so our current investors say)
What happens in the case of a foreclosure?
Capstone Financial manages the foreclosure process and then repairing and selling the property.
How often will I receive payments? How are these payments calculated?
Payments are made monthly to our investors on or around the 15th of each month. Since mortgage interest is paid in arrears, the first payment after an initial investment into a Capstone Fund will be paid on the 15th of the 2nd month of investment, then monthly thereafter.
Can I add to my investment if I would like to?
Yes, any investor can add to their investment in any monetary increment at any time.
How does Capstone manage the risks involved?
Capstone funds loans at a maximum of 65% of retail value on real estate. So, if a borrower does not pay, we have enough equity in the property to foreclose, pay legal fees, rehab costs, and still sell the property for enough to recover our loan amount funded. If the real estate market would collapse by more than 35%, we would also have the option to rent the property to generate income until the real estate market recovered enough to sell the property. In many cases, the rent amount on a home is MORE than the payment we would have collected. This is a wealth strategy Capstone often elects to use in our own portfolio.