A Private Lending Debt Fund with Dynamo Capital

Executive Summary Offering

High Interest rates have made it hard to find cash-flowing rentals, but they also make it a great time to “be the bank.”
Debt Funds can be a great way to achieve cash flow in today’s market.

Dynamo Capital is generating a strong risk-adjusted return by diversifying their lending portfolio exposure across multiple loan programs over a range of borrowers and markets:

Fixed annual returns of 12-14.25%

1 to 2-year lockup, but investing for longer gives better annual returns

Distributions are paid quarterly with the ability to reinvest and compound your principal

Invest for as little as $10,000, open to accredited investors

Book a Call to Get Started

Return Matrix for Investment Amount and Term

Meet the Sponsor: Dynamo Capital

Dynamo Capital allows their borrowers to leverage their funds across a greater number of deals, allowing them to increase their profitability at scale. By diversifying their lending portfolio exposure across multiple loan programs and a range of borrowers and markets, Dynamo Capital generates a solid risk-adjusted return.

Management Team

Justin Rocheleau

CEO, Managing Partner

Justin founded JR Mortgage Group, rising to be the leading residential broker by volume in Kansas, and established multiple financial firms including, Vici Funding, Pollux Wealth Management, and Dynamo Capital. His national recognition stems from his deal underwriting and closing abilities, and he has built a trusted network of brokers and lenders. His success is driven by a strong grasp of data analysis and the ability to exploit market inefficiencies.

MATTHEW MEDRANO

CRO, Managing Partner

Matt brings a diverse background with expertise in finance, real estate, and lending, complemented by an education in economics and a strong grasp of customer relations. He has established multiple multi-million dollar pipelines in commercial lending and is recognized for surpassing sales metrics and fostering team growth in both start-up and corporate settings.

What is a Debt Fund?

A private lending debt fund fills the need in the market for loans that are not standard agency loans (for example, 30 year fixed on your primary) and bank loans. Debt funds take money from private investors (for example, you) and lend the money out to individual borrowers.

Image whats is a debt fund

How Debt Funds Offer Superior Diversification Compared to Individual Notes

A debt fund operates by writing loans and collecting the principal, interest, and fees associated with those loans. The fund then passes the collected funds to its investors in the form of quarterly interest payments. By investing in a debt fund, investors can spread their risk across dozens of properties at once, with professionals managing the underwriting, loan draws, and servicing.

When investors attempt to manage loans themselves, they concentrate their risk into a single property, which can be problematic if the property is located out of state. If things go wrong, the investor may be forced to foreclose on the property, which can be a massively risky and time consuming undertaking. managing the underwriting, loan draws, and servicing.

The fund approach offers diversification by spreading investments across multiple assets, typically dozens of properties, and numerous borrowers in various markets. Investors’ investments in the fund are guaranteed by the fund itself, while the fund’s loans are secured by the borrowers’ mortgages, properties, and other assets.

Three Loan Products

Dynamo Capital is generating a strong risk-adjusted return by diversifying their lending portfolio exposure across multiple loan programs, over a range of borrowers and markets.

Three types of loans

Value Add Loan Case Study

Value add

case Study

About the deal

price - $144,000

Rehab - $48,000

ARV - $275,000

Challenges

Fix and Flip loan needed with low out of pocket.

Key Initiative

Because we fund 75% of ARV, and on this deal, we were only at 69%,we were able to roll in origination fees and the out of pocket at closing was only $606.00.

Business Impact

With little out of pocket and smooth closing, we were able to get the project funded without headaches for the customer and a huge upfront cost for the loan.

Permanent Financing DSCR Case Study

DSCR

case Study

About the deal

price - $144,000

Rehab - $48,000

ARV - $275,000

Appraised - $280,000

Net cash out - $15,900