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 or mixed-use real estate. 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, through monthly interest payments, and aren’t reliant upon property price appreciation.
  • Security: In the event of a default, the lender can foreclose and assume ownership of the underlying real estate.

Mortgage Fund Profile

LYNK Capital aims to provide consistent monthly income paired with the security of having first-lien security in real estate.

  • Distributions: Paid monthly
  • Security: First lien mortgages on real estate

LYNK Capital’s Approach to Mortgage Lending

At LYNK Capital, we believe that, when done properly, mortgage lending can be an attractive and secure investment. To this end, we utilize the following principals when underwriting loans:

Conservative Loan-To-Value Limits: Loan-To-Value (LTV) simply means the amount of the loan divided by the value of the property. Lower LTVs mean lower risk, as there is greater collateral value securing the loan. While Wall Street loans of the mid-2000s were often done at 100% LTV and banks still routinely make 95% LTV loans on owner-occupied properties today, LYNK makes loans where the LTV at completion of any improvements will be no greater than 75%. Overall, we target a portfolio LTV of no more than 70%.

Short-Term Loans: Long-term loans can be risky, as interest rates and market conditions can vary greatly over time. At LYNK, we focus on short-term loans – typically between 6 and 18 months in duration. By focusing on shorter-term loans, we can underwrite loans to a specific set of market conditions and quickly adapt when things change.

Focus on Repayment: For each loan, we focus intently on how our funds will be repaid, even if the borrower defaults. This includes an analysis of the borrower’s experience and capacity to complete the project, the strength of the renovation or improvement plan, and overall market conditions. As a backup, if we do not believe that LYNK can take over a project and complete it successfully, we don’t do the loan.

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 “Company”) is offering securities through a Regulation D, Rule 506(c) offering and is open only accredited investors as defined in Rule 501 of Regulation D.  Prior to investing, the Company is obligated to verify any participating investor’s status as an accredited investor.  Investors must consider the investment objectives, risks, and expenses of the Company carefully before investing.  This and other information are contained in the Company’s Private Placement Memorandum, which may be obtained by contacting the Company.  Please read the Private Placement Memorandum carefully before you invest.  A word about risk: 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 Company 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.  This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements regarding future events and/or the future performance of the Company are subject to certain risks and uncertainties that could cause actual events, or the actual future results of the Company, to differ materially from such forward-looking statements.  The information contained herein provides a limited summary of the Company 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.  Interested investors must obtain and carefully read the Company’s Private Placement Memorandum prior to investing.  No part of these materials may be reproduced in any form, or referred to in any other publication, without express written permission from the Company.

Get in Touch

Want more information? Have a deal you'd like to discuss? Let us know!

Give us a ring

Mon – Fri, 9:00am – 6:00pm ET

E-mail us

[email protected]

Contact Us