How it Works How it Works How it Works
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How It Works

A smart lending model designed to protect capital and capture upside—built for both investors and developers.

Why Investors Choose Hybrid

Secured by Design

We originate 1st-position loans with foreclosure rights and downside protection.

Real Asset Backing

Loans are secured by strategic commercial real estate in strong markets.

Consistent Income

5.5% preferred return paid quarterly from reserves and project income.

Upside Participation

Investors earn 30–35% of project cash flow and capital gains at reversion.

Purpose-Built for Every Partner

Whether you’re allocating capital, managing a portfolio, or building projects — our structure is designed with you in mind.

Commercial Real Estate Income

For Accredited Investors

Earn contractually backed, double-digit returns while someone else handles tenants, toilets, and turnovers.

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Fast Capital for Ground-Up & Value-Add

For Developers

Close in 45 days, fund up to 85 LTC and pay less in equity splits than a traditional equity partner.

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Private Credit for Client Portfolios

For RIAs

Asset-backed income that shrinks portfolio beta and boosts client confidence, without exotic products or heavy paperwork.

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Structured Yield & Planning for Family Offices

For Family Offices

We partner with sophisticated family offices to integrate philanthropic impact and capital growth within a robust multi-generational strategy.

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How the Hybrid Loan Works

Every loan is structured to balance security and return. Here's how a typical transaction is underwritten.

First Deed of Trust

We lend up to 90% of the loan-to-cost, secured by first position on stabilized or transitional commercial assets.

Interest-Only Payments

Borrowers pay 7.5–8.5% annually, interest-only, typically funded through project reserves or rental cash flow.

Shared Upside

We earn 30–35% of the reversion profit and net cash flow once the property is sold or refinanced.

Investment Journey

Your Investment Journey

We’ve designed a clear, secure investment process that aligns your capital with our real estate-backed lending model—step by step.

Commit capital securely through our digital portal

Capital is called only as loans are placed into the fund

5.5% preferred return begins accruing on deployment

Quarterly payouts provide ongoing cash flow

30–35% share of cash flow and capital gains at project exit

Distributions follow an 80/20 then 50/50 waterfall structure

464
Deals Underwritten
$2.1B
Collective Funding Experience
5.5%
Preferred Return Paid Quarterly
11–13%
Target Net IRR

From the Investor’s Perspective

Hybrid Debt Fund loans are structured to deliver security, consistency, and upside—all backed by commercial real estate.

Investor Benefits

First deed of trust provides foreclosure security and downside protection.

Loans tied to strategic commercial real estate: multifamily, industrial, retail, storage.

5.5% preferred return paid quarterly—drawn from reserves and cash flow.

30–35% share of net cash flow and capital gains at reversion.

Model validated by institutional investors and insurers for over 40 years.

Interested in Investing?

Get our free Accredited Investor Guide or schedule a call to learn more about the fund structure, performance, and process.

Download the Investor Guide
Investor Feedback

“As an investor in the HDF 1 Fund providing capital for a loan in Mesa Arizona for the industrial land. I found the experience as a Capital provider to be transparent. The return on my capital was above market. The risk I felt was low due to the underwriting and the securitization of the loan through the land, and the borrower. Well done.”

Kevin S.

“I recently had the opportunity to invest in the Hybrid Debt Fund, and I couldn’t be more pleased with the outcome. The process was seamless and transparent, with clear communication throughout. The returns were as expected, and the overall experience was both rewarding and stress-free. I appreciate the professionalism and reliability demonstrated by the team involved. I would definitely consider investing in similar opportunities in the future.”

Luke B.