Socially Responsible “Impact Investing”
Expand Capital is an innovative funding platform that uses capital to purchase non-performing (pre-foreclosure) mortgage pools at a deep discount. Instead of completing the foreclosure, thereby creating a vacant REO property, we do our best to work with the borrower.
Non-performing (pre-foreclosure) loans
Non-performing loans (NPL’s) are loans where the borrower is behind more than three months. We want struggling families to stay in their home. This is not only good for them its good for our company as well. We can save money by avoiding a long foreclosure process and minimize our costs for debt recovery. We offer a sustainable solution that gives the borrower an opportunity to have a positive outcome by modifying their loan terms or forgiving a portion of the balance owed.
This type of investment is known as “impact investing” due to its socially responsible mission. We can help struggling families, improve neighborhoods, and provide a great return to our investors. We pick up where traditional banking is unwilling or able to help.
Performing seller financed loans
Another area we invest, where banks neglect, is performing seller financing loans (land contracts). These loans are secured by 1st position lien and purchased at 60-75% of the existing loan balance. This niche market serves families that can not qualify for a typical mortgage but need the opportunity to own a home. The average American’s only wealth is in their home. We want deserving families the opportunity to create equity and pay down their mortgage over time.
Some of the seller financed loans we purchase can be refinanced into a traditional mortgage or FHA mortgage. This lowers the borrower’s payments and pays off the loan owed to us at a significant profit. The borrowers who do not qualify for a traditional mortgage we can offer a non-traditional mortgage. The non-traditional mortgage provides the borrower with homestead tax relief and deed to the property.
Despite our best efforts, not all borrowers will be willing or financially able to participate in our programs. For this group we provide settlement options, deed in lieu, short sale, and cash incentives in exchange for the property. Once the property is secured and rehabbed we can offer a traditional or non-traditional mortgage to a new buyer. Disposing of assets using this method helps recovering communities maintain homeownership instead of a landlord owned rentals.
When you invest with Expand Capital Fund, you are purchasing a membership interest in our company. Your investment is secured by 1st position lien on the homes we invest. We anticipate this fund to provide an above average return to our investors by blending both performing and non-performing loans. However, depending on how the real estate market will react to the next cycle; we could see a much higher return. For more information on our new offering contact Kyle@expandcap.com