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When you invest in real estate-backed loans, one of the most important terms you’ll come across is the “first position lien.” At AJX Capital, we prioritize transparency and education so our investors can make informed decisions—and understanding lien positions is a key part of protecting your capital. 💼 What Is a Lien in Real Estate? A lien is a legal claim or right against a property, typically used as collateral to secure a loan. When a borrower takes out a loan, a lien is placed on the property so that if the borrower defaults, the lender has the right to take ownership through foreclosure and recoup the loan amount. 🥇 What Does First Position Mean? A first position lien means that the lender holding this lien has first priority over all other claims on the property. If the borrower defaults and the property is sold (either voluntarily or through foreclosure), the first position lien holder gets paid first, before any other lenders or creditors. This is crucial. In the event of liquidation, second or third lien holders may not get paid at all if the sale proceeds don’t cover the full debt. Example: Let’s say a property sells for $500,000 and there are two liens: First position lien: $400,000 Second position lien: $150,000 The first position lender (you, through AJX Capital) would get paid in full, while the second position lender may only recover part—or none—of their $150,000. 🔐 Why AJX Capital Uses First Position Liens At AJX Capital, capital preservation is a top priority. That’s why the majority of our investments are structured with first position liens on real estate assets. This ensures our investors are in the most secure position possible when providing capital for fix-and-flip or bridge loans. Here’s what that means for you: ✅ Senior claim on collateral ✅ Higher chance of full recovery if the borrower defaults ✅ Peace of mind knowing your investment is backed by a real, tangible asset 💸 How Investors Benefit By investing through AJX Capital, you’re not just earning attractive returns—you’re also benefiting from a secured structure with clearly defined legal protections. First position liens are one of the key reasons why our investors choose us for consistent, risk-mitigated opportunities. 🔍 Final Thoughts If you're new to private lending or real estate fund investing, understanding lien priority is essential. And as part of our commitment to transparency, AJX Capital ensures that every investor knows where they stand. Want to learn more about how our first position lien investments work in practice? Contact us and we will walk you through it.

For many high-net-worth individuals, the idea of real estate investing is appealing—but the thought of dealing with tenants, property maintenance, and market fluctuations can be overwhelming. Fortunately, passive real estate investing provides a solution, allowing investors to reap the benefits of real estate without the headaches of hands-on management. What Is Passive Real Estate Investing? Passive real estate investing allows individuals to earn income from real estate without actively managing properties. Instead of personally handling leasing, repairs, or tenant issues, investors leverage professional management while still generating strong returns. Popular passive real estate investment strategies include: ✅ Real Estate Syndications – Investing in a large-scale real estate project managed by professionals. ✅ Private Real Estate Funds – Pooling capital with other investors to acquire high-performing real estate assets. ✅ Real Estate Crowdfunding – Investing small amounts in commercial or residential properties online. ✅ REITs (Real Estate Investment Trusts) – Buying shares in companies that own and manage real estate properties. Why Choose Passive Over Active Real Estate Investing? 1. Hands-Off Wealth Building Passive real estate investing allows investors to earn consistent, long-term returns without handling the operational aspects of property ownership. No tenant calls, no maintenance issues, no property management headaches. 2. Strong & Predictable Cash Flow Investing in private real estate funds or syndications provides steady rental income and potential appreciation, making it a reliable wealth-building strategy. Many funds offer quarterly distributions, ensuring a consistent passive income stream. 3. Diversification & Lower Risk Unlike direct property ownership, where one bad tenant or market downturn can hurt returns, passive investments spread risk across multiple properties and markets. At AJX Capital, our real estate fund invests in diversified, high-growth markets like San Diego, Tampa, and San Antonio, reducing exposure to volatility. 4. Tax Advantages Passive real estate investments benefit from tax-friendly strategies, including: ✔ Depreciation deductions (reducing taxable income) ✔ 1031 exchanges (deferring capital gains taxes) ✔ Lower long-term capital gains rates 5. More Time for What Matters By choosing passive investing, you free up your time to focus on your business, family, or personal goals while still growing your wealth. Investing with AJX Capital At AJX Capital, we specialize in diversified, high-yield real estate funds that allow investors to earn passive income with confidence. Our team handles property selection, acquisition, management, and returns—so you don’t have to. 🔹 Targeted Returns: Competitive annual returns with quarterly distributions. 🔹 Experienced Management: A team with decades of experience in real estate investing. 🔹 Exclusive Market Access: High-growth markets in San Diego, Tampa, and San Antonio and other key areas where we operate. 🔹 Hassle-Free Investing: No landlord responsibilities—just passive income. Ready to Build Wealth Without the Stress? 👉 Join the AJX Diversified Real Estate Fund Today! 

A 506(c) offering is part of Regulation D of the U.S. Securities and Exchange Commission (SEC). It allows private companies — like AJX Capital — to publicly market investment opportunities to accredited investors while remaining exempt from certain SEC registration requirements. This means we can openly advertise select real estate opportunities, giving qualified investors like you a chance to participate in deals that were once kept behind closed doors. B enefits of Investing in a 506(c) Fund Here’s why our accredited investors love this structure: 1. Access to Private Real Estate Deals 506(c) funds allow you to invest in institutional-grade real estate assets — without the Wall Street noise. 2. Transparency & Compliance Since only verified accredited investors can participate, 506(c) offerings follow a strict vetting process — ensuring security and credibility. 3. Passive Income Potential Our diversified real estate portfolio is built for consistent returns through cash flow, equity growth, and strategic exits. 4. Full Control Without Hands-On Management You invest. We handle the rest — from sourcing and underwriting properties to executing renovations and managing tenants. Who Can Invest To qualify, you must be an accredited investor, which includes individuals who: Earn $200,000+ annually (or $300,000 with a spouse), or Have a net worth exceeding $1 million (excluding your primary residence) Are entities with $5M+ in assets or an entity where all owners are accredited If this sounds like you — you’re already positioned to take advantage of this powerful investment structure. How AJX Capital Uses the 506(c) At AJX Capital, our 506(c) fund gives you access to a curated, diversified portfolio of value-add residential properties across high-growth U.S. markets. We're not just flipping homes — we’re building a stable, income-generating ecosystem designed to maximize your returns. Our mission: protect your capital, generate consistent cash flow, and create long-term equity upside — all with full transparency and investor support. Ready to put your capital to work the smarter way? 👉 Book a quick call today and let’s walk through your investment goals.

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