LYNK Capital provides an option for smart investors who are looking to build wealth, gain exposure to real estate, and diversify away from the volatility of the stock market. LYNK Capital invests primarily in short-term, first lien renovation and construction loans that are originated directly by LYNK Capital.

At LYNK Capital, we believe that investing in real estate is an important part of any balanced portfolio. We believe this so much that a substantial portion of our own money is invested beside other investors in our funds. 

Mortgage Fund: Asset Class & Business Model

LYNK Capital invests primarily in short-term loans made to borrowers who are building or renovating residential properties. Investing in mortgages – being a lender to owners of real estate – offers an alternative form of real estate exposure with certain benefits:

Lower Capital Risk: Borrowers are required to bring equity into the project (typically 15 – 25%) and take the risk of first loss in the event that the property sells for less than expected. This results in less capital risk for the lender compared to property ownership.

Consistent Returns: Investor returns are paid directly by the borrower, and LYNK Capital intends to distribute cash on a monthly basis. While distributions are not guaranteed, and will be made only to the extent that the Fund has available cash flow, LYNK has a Life-To-Date annual return of 10.16% (as of Jan 2024.)

Security: In the event of a default, the lender can foreclose and assume ownership of the underlying real estate.

Mortgage Fund Profile

LYNK Capital invests primarily in short-term, first-lien real estate mortgages that are originated through LYNK Capital’s direct origination channels. Mortgages originated by LYNK Capital are primarily renovation or construction loans made to property developers or investors who will sell the property for a profit upon completion.

These loans have the following characteristics:

  • Conservative Loan-To-Value: Maximum loan-to-values not exceeding 75% of the as-completed value
  • Short Terms Terms: from 12 – 24 months
  • Collateral Security: Secured by first-lien mortgages and personal guarantees from project sponsors

LYNK Capital’s Approach to Mortgage Lending

LYNK Capital is a private money lender founded in 2013 and has closed over 1,800 loans – totaling more than $1.0 billion of volume since its inception. At LYNK Capital, we believe that mortgage lending can be an attractive and secure investment, when done properly. We utilize the following principals when underwriting loans:

Appraisals: An independent appraisal is obtained for all collateral properties to fully understand the value and marketability of the collateral.

Borrower Capacity: The borrower’s financial profile is examined to ensure the borrower has sufficient capacity to carry the loan.

Experience: The project plans and relevant experience of the borrower and contractor are closely examined to be sure that the scope of the project is reasonable and achievable.

Construction & Renovation Lending

A primary focus of LYNK Capital is the origination of small-balance renovation and construction loans on residential properties. We believe this is an attractive market because:

Prior to the mid-2000s, builders and property developers were traditionally served by local community banks; however, as a result of increasing regulations and oversight, these banks have reduced their levels of lending and have generally made obtaining renovation and construction loans a more difficult and time-consuming process. As a result, many small property developers are under-served by the traditional banking system and have a strong need for financing from private lenders – meaning that lenders like LYNK Capital can make good quality loans at higher rates than those offered by banks.

While loans from banks are difficult and cumbersome to obtain, there are always properties that need to be renovated; additionally, many areas served by LYNK simply have an abundance of older properties that can be increased in value and desirability with moderate renovations.

Beyond the market conditions noted above, renovation and construction lending is inherently short-term in nature, meaning that LYNK can help reduce risks related to interest rates and market conditions by focusing on lending to projects with foreseeable completion and repayment dates.

Important Disclosures

LYNK Capital Fund L.P. (the “Fund”) is a private investment fund that includes a high degree of risk and is appropriate only for accredited investors who are willing to forego liquidity and to risk the loss of their entire investment. Investors must consider the investment objectives, risks, and expenses of the Fund carefully before investing. This and other information are contained in the Fund’s Private Placement Memorandum. You must read the Private Placement Memorandum carefully before you invest. The information in this document is considered to be accurate as of June 1, 2024. The terms summarized herein are for informational purposes only and are qualified in their entirety by the more detailed information set forth in the Fund’s Private Placement Memorandum. This material must be read in conjunction with the Fund’s Private Placement Memorandum. This document does not constitute an offer to sell any securities, which is made only by the Private Placement Memorandum. The Fund is offering securities through a Regulation D, Rule 506(c) offering and is open only to accredited investors as defined in Rule 501 of Regulation D. Prior to investing, the Fund is obligated to verify any participating investor’s status as an accredited investor. The Fund’s past performance is not a reliable indicator, or a guarantee, of future results. All investments contain risk and may lose value. Any historical performance data contained herein represents past performance and does not guarantee future results; current and future performance may be different than the performance data presented. The Fund is not required to follow any standard methodology when presenting performance data and its performance may not be directly comparable to the performance of other similar funds. Certain information contained in this communication constitutes “forward-looking statements” within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward- looking terminology such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “identified,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates”, “confident,” “conviction” or other similar words or the negatives thereof. These may include financial estimates and their underlying assumptions, statements about plans, objectives, intentions, and expectations with respect to positioning, including the impact of macroeconomic trends and market forces, future operations, repurchases, acquisitions, future performance and statements regarding identified but not yet closed acquisitions. Such forward-looking statements are inherently subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. We believe these factors include but are not limited to those described under the section entitled “Investment Considerations and Risk Factors” in the Fund’s Private Placement Memorandum. Except as otherwise required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. All opinions expressed herein are solely those of the Fund Manager’s and the content of these opinions may or may not prove to be accurate. The information contained herein provides a limited summary of the Fund and its operations, and is not intended to be a comprehensive overview of its business, operations, risks, or condition, nor is this document intended to represent investment advice or a recommendation for any particular investment strategy or product.

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