2021 was a year like no other for the real estate community. Throughout the year, the real estate market not only experienced growth during a time of uncertainty but also broke long-standing records. For example, the average sales price of a single-family home reached new highs, while limited inventory pressured buyers to expand their budgets. According to this chart by the St. Louis Federal Reserve Bank, the median sales price for a home reached $404,700.
The year also smashed records for both Capital Fund 1 and our borrowers. We have a saying in the office: “we’re only as successful as our borrowers.” This means our performance for the year reflects the borrower’s success in hunting down deals and finding opportunities.
Our Senior VP Kevin Highmark, echoed this sentiment in a statement to employees and our real estate partners:
“Capital Fund exists to empower capable entrepreneurs to take advantage of opportunities they find in the marketplace. We enable people who otherwise would not be able to secure funding quick enough, or at all, and therefore miss out on these opportunities. Our borrowers are transforming the markets we are in; they are providing inventory to cities starving for more homes. We are just happy to play a role in what our borrowers are able to accomplish.
We are proud of these numbers and the growth that we have achieved. We have had fun growing a team, and we are grateful for the countless hours everyone on our team has put in. However, it is the people out there finding deals, sourcing materials, employing labor… our borrowers, to who we give the most credit for our success.”
$820 Million Dollars Funded
When we zoom out and look at the year, we’re humbled to know that much of our growth has happened over the past 24 months. In October of 2021, Capital Fund 1 crossed a significant milestone in our 11-year history as a company: $2 billion in loans funded. The record growth in the real estate market catapulted us across that key goal post after only hitting the $1 billion mark two years prior.
Our exceptional processing and servicing team facilitated the closing of 2380 deals throughout the year. This number means more than the number of loans and refinances we closed this year. Instead, it represents the thousands of borrowers who trust Capital Fund 1 to facilitate their capital needs. This number also represents investors who span the experience gap. They include first-time flippers to investors who have been in the business for decades. We only exist because our borrowers trust their real estate businesses with us.
98% Positive Satisfaction Score
We hold this metric near and dear to our hearts. The key to our success is not churning through thousands of borrowers for a one-time loan. Instead, we believe building a sustainable business is by building long-term relationships with as many real estate investors as possible. We’ve seen some borrowers solely use us as their capital source to someone who is just shopping around for the best rate.
1500 Investor Toolbox Users
In January of 2021, we launched our Capital Fund 1 investor toolbox. This online platform represents another way we’re investing in our relationship with others in the industry. We launched our PRO Comp toolset that allows the public to access the same comping tools as our underwriting team at no cost.
Borrowers are empowered with tools beyond the PRO comping feature. They have access to Capital Fund 1 rewards, our exclusive Home Depot discount, and track the status of their loans.
13.5 Million Impressions
Private and hard money lending is a niche business, and it takes laser-like precision to identify our target demographic. So without revealing the “secret sauce,” we are proud to report industry-leading conversion rates designed to identify potential borrowers at all stages of the real estate investment cycle. The 13.5M pairs of eyes represent the future of Capital Fund 1 and our commitment to expanding the real estate investment community.