February 27, 2025

Written by: Daly Kay DiNatale

Are you tired of logging into your investment account or IRA each week only to see that you’re losing money! I mean your “financial advisor” put you in the most diversified and conservative portfolio with the “lowest fee’s” so what’s going on? Well, here’s the deal… the only people making money in the stock market have been the advisors and brokerage houses who are collecting the fee’s off your portfolio. If you just decided to put your money in a market index such as the Dow Jones, you would have LOST 2-3% OF YOUR MONEY over the last 20 months! In fact, you’d be one of the lucky ones… as many investors who sold would have lost over 20% of their life savings in a diversified market portfolio such as the Dow Jones! It gets worse… even If you had invested in a  “safe growth” stock such as Apple, you’d be down over 35% from it’s high! But wait… what if you invested in some of the oil & gas stocks billionaire hedge fund investors such as Carl Icahn, George Soros, and Warren Buffett had during that time… you could have lost 40-50% of your life savings!

As global economies such as China are continuing to devalue their currency, America takes on trillions in debt, GDP numbers shrink around the world, Britain exits the EU, Greece is bankrupt, oil is tanking, interest rates & unemployment rates are rising, artificially high corporate valuations using share buybacks from historically low interest rates are becoming unsustainable, ISIS attacks are increasing, and political unrest is forming as the future President of the United States could be one that was the subject of a federal indictment only months prior… where are you supposed to feel safe investing your hard-earned savings?

The VOLATILE & UNSTABLE STOCK MARKET, which can drop hundreds of points any given second on a new piece of global news? NO WAY!

Private investors seeking a high return, low risk alternative to the stock market can find safe opportunities by investing in the private lending market (hard money lending). In fact, at Capital Funding, we have a team made up of attorneys, originators, and experienced real estate investors that perform all the due diligence on each deal for you so all you have to do is collect the check each month. The returns in private note investments with us return an average of 8.5-10% return with significantly less risk than the safest diversified portfolio in the stock market!

Investing in hard money loans is a lot like investing in a bond, which returns a fixed yield and pays off at maturity. 

For example, If you make a loan to a borrower for $200,000 at 9.00% interest, and require interest-only payments, you will earn an income of $18,000 every year. And if the borrower does not default, the loan will pay off at, or before the maturity date, and the original invested principal will be returned. With a hard money loan, a loan is made to a borrower who needs the money for a real estate investment project such as a fix & flip or for use in his business and does not want to resort to traditional financing (high debt to income ratio or can’t wait until the bank approves the loan 45 days later). Capital Funding (the lender) will underwrite the loan by evaluating the borrowers past projects, credit score, but most importantly LTV. First, Capital Funding will order an independent appraisal of the property and perform a comparative market analysis to determine the value of the property. Once the value is determined, Capital Funding will lend out up to 65% of that value (Loan to Value). This requires each borrower to have “skin in the game” (equity) of at least 35% in each project. This vested interest is the key to mitigating the risk in hard money loans. 

We carefully review the borrower’s capacity to make monthly payments, as this is a very important key to a successful loan investment. Our hard money loans are made based on the asset valuation, but we also give weight to the borrower’s past credit track record and capacity to repay the loan when a balloon payment is due or the loan matures. At Capital Funding, we evaluate each and every deal with our on staff attorneys to ensure every single deal is safe! In order for the hard money investment to have any risk at all, the value of the underlying collateral would need to drop over 35% and the borrower would have to stop paying! However, this almost never happens because rather than defaulting and risk losing 35% of his equity in the property… the borrower could simply sell the property. Either way, the note investor is still protected and could potentially make even more money than the agreed upon monthly interest rate! He would either: (1) get paid off from the sale by the investor (and potentially receive a pre-payment penalty) or (2) foreclosure on the property (which now only takes 4–6 months in Florida) and receive a credit for the loan amount plus default interest (18-25%) & attorney fees at the foreclosure sale. 

Capital Funding is able to provide investors with safe and high yields because we maintain a strict underwriting policy on each investment! (see below)

So stop putting your families future at risk in the stock market and earn over 8.5% APR return on your money with Capital Funding today at 866-999-2011. 

Check out our short Mortgage Note Investment Video (below)