Carlyle Capital has provided institutional and accredited investors access to investments that offer safety and income.
Safety – With most investors happy to earn 8-10% in a good stock market, it’s easy to forget how volatile the market can be. The last major market correction from October 2007 through March 2009 saw a 57% decline in overall stock market values! By supplementing an investment strategy with low leverage debt instruments backed by real estate, lending against only part of the value of the real estate intrinsically creates a level of downside protection. In essence, if a loan is made against 60% of the value of real estate, there is a 40% level of downside protection before actual loss to principal would occur.
Income – With stocks yielding 3% and bonds yielding 4%, it’s easy to see that a trust deed investment backed by real estate can offer more lucrative yields – typically in the 8-12% range.
Short Term – Typically, a private lender structures debt instruments short term – generally, between 6 months and 2 years. Our borrowers are experienced real estate professionals who desire a short term bridge loan to capture the opportunity of a particular real estate investment, and have a clear and defined exit strategy to payoff their debt very quickly.
Carlyle Capital’s strict underwriting guidelines provides investors unique strategies that should be considered to supplement an investment strategy. In addition, professional loan servicing is offered to allocate the management responsibility to professionals. Of course, any investment has risk, but investors have typically been rewarded when investing in real estate debt instruments.