Income Strategy
Hard Money Lending
Our income strategy is a natural evolution of our work in the real estate industry. Over the past three years, we've originated over $3 million in loans, generating excellent returns on capital. My extensive background as a mortgage loan officer, house flipper, borrower, and lender gives us a unique competitive advantage in this niche market.
Our objective is to provide capital to the real estate sector with a primary focus on financing house flips through hard money lending. Below are the results of our hard money lending over the last three years.
Loan Performance
| Loan Amount | Points/Interest Earned | Annualized Return (Unlevered) | Funding Date | Payoff Date |
|---|---|---|---|---|
| Early Lending (Pre-Fund) | ||||
| $ 225,000.00 | $ 37,520.00 | 13.26% | 10/13/2023 | 1/14/2025 |
| $ 60,000.00 | $ 5,523.30 | 21.96% | 10/31/2023 | 4/1/2024 |
| $ 175,000.00 | $ 8,935.20 | 29.58% | 1/18/2024 | 3/21/2024 |
| $ 140,000.00 | $ 14,386.57 | 21.43% | 2/27/2024 | 8/20/2024 |
| $ 45,000.00 | $ 4,767.12 | 27.04% | 10/15/2024 | 3/7/2025 |
| $ 277,500.00 | $ 40,916.13 | 14.74% | 5/14/2025 | 5/14/2026 |
| $ 35,000.00 | $ 4,382.19 | 24.97% | 4/24/2025 | 10/24/2025 |
| $ 42,000.00 | $ 5,258.63 | 24.97% | 4/24/2025 | 10/24/2025 |
| $ 190,000.00 | $ 25,650.00 | 13.50% | 8/28/2025 | 8/28/2026 |
| Harvey Capital Funding I LP | ||||
| $ 78,000.00 | $ 10,060.00 | 17.20% | 11/25/2025 | 8/25/2026 |
| $ 200,000.00 | $ 7,406.85 | 26.00% | 12/02/2025 | 12/02/2026 |
| $ 109,600.00 | $ 13,852.00 | 16.85% | 12/10/2025 | 9/10/2026 |
| $ 142,500.00 | $ 17,800.00 | 16.65% | 12/11/2025 | 9/11/2026 |
| $ 173,000.00 | $ 21,460.00 | 16.54% | 12/17/2025 | 9/17/2026 |
| $ 183,000.00 | $ 17,942.11 | 23.09% | 12/17/2025 | 9/17/2026 |
| $ 85,000.00 | $ 4,950.00 | 23.29% | 12/19/2025 | 3/19/2026 |
| $ 100,000.00 | $ 5,700.00 | 22.80% | 12/22/2025 | 3/22/2026 |
| $ 98,500.00 | $ 5,625.00 | 22.84% | 12/23/2025 | 3/23/2026 |
| $ 102,000.00 | $ 5,800.00 | 22.75% | 12/23/2025 | 3/23/2026 |
| $ 100,000.00 | $ 9,700.00 | 19.40% | 1/9/2026 | 7/9/2026 |
| $ 135,000.00 | $ 12,850.00 | 19.04% | 1/23/2026 | 7/23/2026 |
| $ 100,000.00 | $ 9,700.00 | 19.40% | 1/23/2026 | 7/23/2026 |
| $ 55,000.00 | $ 5,650.00 | 20.55% | 1/23/2026 | 7/23/2026 |
| $ 60,000.00 | $ 6,100.00 | 20.33% | 1/23/2026 | 7/23/2026 |
| $ 96,500.00 | $ 9,385.00 | 19.45% | 2/4/2026 | 8/4/2026 |
| $ 3,007,600.00 | $ 318,318.58 | — | ||
Green background indicates active loans where payoff date is assumed to be maturity date, which is most conservative for assuming what the rate of return will be.
Amber background indicates loans that were either 50% or 100% sold on the secondary market to recycle capital into new originations.
Hard Money Lending
Hard money lending is a form of asset-based lending where the primary focus is on the value of the collateral, not the borrower's credit. This fills a crucial gap for properties that don't qualify for traditional financing, often because they require extensive renovations. These are short-term, high-yield loans with both upfront fees (points) and high interest rates. Our historical track record has generated double-digit returns through this disciplined approach.
To protect our capital, we focus on three key principles:
Conservative Valuations
We are meticulous in our estimation of the After-Repaired Value (ARV) of a property, as an inaccurate valuation is the single biggest risk.
Loan-to-ARV Ratio
We will not lend above 75% of a property's ARV, creating a substantial buffer in the event of a borrower default.
Borrower Vetting
We prioritize lending to experienced and well-capitalized borrowers who know how to manage unforeseen issues.
Targeting Consistent and High-Yield Returns
Our return projections are based on our verifiable track record and conservative analysis, not on speculative pro forma. Our lending operation has consistently generated double-digit returns, with unlevered annualized returns often exceeding 20% on our short-duration, high-yield loans.
We believe future returns will be driven by our hard money lending operations. While we project a conservative annual return for our investors in the 10-15% range, we are confident that several factors — including our focused deal sourcing and a growing demand for private financing — could push these returns even higher. Our disciplined approach prioritizes consistent, high-yield income and downside protection to generate reliable returns over the life of the fund.
Fund Structure
Our Income funds are structured as a Limited Partnership (LP), with Harvey Capital LLC serving as the General Partner (GP) and investors as Limited Partners (LPs). This model ensures that all LPs have liability limited to their initial investment.
We operate on a simple 82/18 profit split, meaning 82% of all net earnings go directly to our Limited Partners, with the remaining 18% going to the General Partner. We charge no additional management fees or AUM fees.
There is a $100,000 minimum investment to join the fund. 100% of earnings (net of the GP split) are distributed to LPs on a monthly basis over a 7-year lockup period. After this term, the fund's assets will be fully liquidated and returned to all LPs. We provide full financial transparency, issuing a 1065 partnership return and K-1s to all Limited Partners each year for tax purposes as well as quarterly narrative updates going over the fund's performance during that period.
Why Now?
We believe now is an ideal time for this strategy due to two key market factors:
The Housing Market
A prolonged period of low housing supply and rising interest rates has created a logjam. We expect an increase in transactions and demand for private financing as interest rates normalize.
High-Yield Spread
When credit spreads widen, larger financial institutions pull back on lending, creating a financing gap that our fund can fill.
My background and track record in real estate and lending give us a clear competitive advantage. We have a solid plan to generate consistent, monthly income for our investors while protecting against downside risk. If this opportunity aligns with your investment goals, click the button below to schedule a call with me to learn more.
This content is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities. Any such offer will be made only through a formal offering memorandum.