Please reach us at investments@crowncapitalresources.com if you cannot find an answer to your question.
We periodically update our website under our Fund Overview section. For the most up to date information on fund details and loan tape, please reach out and request our latest newsletter
We have several characteristics which make our fund unique. Please learn more here: https://crowncapitalresources.com/15-fund-benefits
Crown Capital Income Fund, LP is the legal entity for the fund. It is owned through shares by fund investors and is managed by Crown Capital Resources, LLC the fund manager. All income is generated at the fund level and distributed first to fund investors. Left over distributions go to the GP.
We focus on transparency at Crown Capital. Along with the detailed loan tape we provide, all loans can be verified online via a property search with the County Clerk
Investors are always able to request and receive a return of part or all of your investment. Under normal operationg conditions, we have a maximum of 120 days to return your funds. Please note that interest will continue to accrue throughout that period as well.
This is a Reg D Rule 506(c) offering and must comply with associated SEC requirements. As a result, investors must be accredited. Per the SEC, an individual must meet only one of the following two criteria to invest:
“Net worth over $1 million, excluding primary residence (individually or with spouse or partner).”
“Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year.”
"Investment of at least $200,000 into the Income Fund"
Investors have the option to either receive monthly distributions or reinvest their preferred return.
For monthly distributions, a $100,000 investment will yield $833.33 per month (Class A-1) at a 10% per annum interest rate.
Choosing to instead reinvest will accrue the preffered return to the principal and inclrease your rate of return to 10.5%.
We are very proud of our record. We have operated for over 9 years without capital loss nor missing an investors monthly payment. Our default track record is equally as impressive, we have only had to take back 1 property through a formal foreclosure.
Overall we are seeing properties from our clients taking longer to sell than they have in years past. As a response to these market conditions we are tightening up our underwriting criteria and requiring more liquidity to cover interest payments past the initial loan term.
In a slowing economy, there is reduced demand across all or most sectors, including real estate. We can only focus on what we can control and thus we are hyper-focused on conservative, disciplined underwriting. Maintaining a conservative loan to value provides a buffer for us to continue operating without capital loss, even in a softened market. Today our portfolio is below 50% loan to value which is a significant hedge against a weaker economy.
Each property funded is bound by a written contract between the Fund and our borrower. Any loan borrowed to a business name requires a personal guarantee. All closings are done through a reputable title company and publicly recorded.
We believe it's important to have "skin in the game." Jeremy and David together are the largest shareholder in the Income Fund.
Additionally, this company is the sole form of income for both Jeremy and David
There will never be any required cash calls in this Fund structure.
These are evaluated on a case-by-case basis however our prerogative is to exit the property as quickly and profitably as possible. We will take back the property via a foreclosure and either wholesale it as-is or finish renovations and list it.
No, per our Subscription Agreement we can only originate loans in Texas. We made this decision since It’s a lender-friendly state (as fast as 42 days to foreclosure ), and since we live here, we know these markets well.
No, per our Subscription Agreement we can only originate loans in a first lien position.
Yes, properties will always be insured throughout the loan term. Before giving funding authorization at closing we ensure that clients have pre-paid for an insurance policty covering the entire loan term. Additionally we pay for a secondary coverage through SUI which covers the property in case there are any lapses in the primary policy.