Strategy
CapSource is focused on well collateralized short to medium term real estate loans for properties that are in a period of positive transition. Since inception in 1997, the company has funded over $600 million in transactions. Loan sizes typically range between $500,000 and $5 million; however, the company has funded loans up to $50 million. CapSource specializes in commercial loans for property types that include single family residence, multi family, commercial, office, industrial, retail, hospitality, and others. Loan categories include:
| Loan Category | Description |
| Raw Land | Acquisition or refinance of land |
| Improved Land | Finished pad or lot, ready for construction |
| Land Development | Land loan with construction costs for site work and potentially other development costs |
| Bridge | Improved/Income producing property |
| Construction/Bridge | Income producing property that will be repositioned in some way |
| Debtor in Possession (DIP) | Super priority loan (first lien position) made to projects in chapter 11 bankruptcy |
Capitalizing on the company’s impeccable reputation and extensive network of borrowers, CapSource feels as strongly about working with reputable borrowers as it does about the strength of the underlying collateral. By obsessing about collateral-rich loans and strong borrowers, CapSource has established a proven track record of managing an efficient portfolio of profitable and sustainable loans.
One of the keys of the company’s past success has been a deep understanding of the markets we serve that allows our loan committee to make timely and effective underwriting decisions. This enables us to capitalize on opportunities that are out of the reach of most institutional banks. Although we take pride in our quick response to borrower’s needs, we insist on supporting collateral values with current appraisals from qualified appraisers as well as detailed market and borrower information. By combining quick response and efficient underwriting and funding, CapSource is able provide high quality, high yield loans for qualified borrowers.
Unlike many private money lenders, CapSource does not utilize trust accounts or handle loan servicing in-house. Our investors make payment to the title company handling the transaction, and all loans are funded through large and reputable title and escrow companies. Investors are supplied copies of all closing documents, including title insurance showing each investor as a beneficiary and as owner of the loan proportional to their level of interest. After closing, loan payments are made to WestStar Loan Servicing, a bonded third-party loan servicing company with a large regional presence.