Unleashing Real Estate Opportunities: A Look at Debt Funds

Imagine a pool of private capital, fueling deals for real estate buyers and owners – that's the essence of a real estate debt fund. Forget chasing banks; these funds offer streamlined financing, plugging a gap in the market for loans between $5 million and $150 million.


Beyond Bricks and Mortar: How Debt Funds Make Money

Forget volatile stocks. Debt funds offer steady income through interest on loans (think 9%+) and potential property ownership in case of default. But it's not just about collecting checks. Funds actively manage loans, maximizing value through strategic tweaks or even taking over promising properties to sell for profit.


Why Debt Funds Matter:

  • Filling the Void: Traditional lenders often shy away from bridge loans and construction projects, leaving debt funds to fuel these crucial stages.
  • Speed Demystified: Forget months of paperwork. Debt funds move fast, matching the agility of the real estate world.
  • Opening Doors: Lacking equity or a perfect balance sheet? Debt funds offer flexible LTV ratios, expanding financing options for investors and developers.

 

Benefits to Investors: A Pathway to Stable Returns

Investing in a real estate debt fund unlocks a unique set of benefits for savvy investors seeking steady income and diversified portfolios. Here's how you can reap the rewards:


  1. Predictable Cash Flow: Unlike the rollercoaster ride of the stock market, real estate debt funds offer a more reliable source of income. By providing loans to borrowers, you enjoy regular interest payments, often surpassing 9%. This translates to consistent, passive income, perfect for building wealth over time.
  2. Lower Volatility: Forget the gut-wrenching ups and downs of equities. Real estate debt funds boast lower volatility thanks to their secured nature. Loans are typically backed by valuable properties, providing a layer of insulation from market fluctuations. This makes them a compelling choice for risk-averse investors seeking stability.
  3. Portfolio Diversification: Adding a real estate debt fund to your portfolio introduces valuable diversification, reducing your overall risk. Since they have a low correlation with traditional asset classes, debt funds can weather market storms and potentially enhance your portfolio's resilience.
  4. Access to Exclusive Deals: As a debt fund investor, you gain access to a pipeline of lucrative, off-market opportunities. Traditional banks often miss out on bridge loans and construction projects, leaving debt funds to negotiate favorable terms with borrowers. This translates to potentially higher returns for you.
  5. Passive Income & Passive Real Estate Exposure: Unlike directly owning property, investing in a debt fund lets you participate in the real estate market without the hassle of management. No tenants, repairs, or market research – just steady income from professionally managed loans.


Our Debt Fund in Action:

AJX Capital provides exclusive access to a debt fund powered by a top team with a proven track record. Their focus? Protecting your principal, even in case of default.


The Bottom Line:

Real estate debt funds offer a compelling alternative for investors seeking stable income, portfolio diversification, and access to exclusive deals. With their lower volatility and potential for appreciation, they can be a valuable asset in building long-term wealth.

By Mark Daguinod October 8, 2025
If you’re considering putting your hard-earned capital into a real estate investment fund, asking the right questions can make all the difference. Not all funds are created equal—and as an investor, you deserve transparency, performance, and peace of mind. At AJX Capital, we encourage all investors to do their homework. Here are 5 essential questions every savvy investor should ask before committing to a real estate fund—and how AJX Capital confidently checks every box. ✅ 1. Who Is Managing the Fund—and What’s Their Track Record? Why it matters: Real estate is not just about numbers—it’s about execution. A fund is only as strong as the people running it. Ask yourself: Does the team have real-world experience in real estate acquisition, lending, and development? Have they successfully navigated both strong and weak markets? Do they have skin in the game? How AJX Capital answers: Our leadership team has decades of experience across residential flips, commercial investments, private lending, and fund management. More importantly, we invest alongside our partners—because we only offer what we believe in. ✅ 2. How Is the Fund Structured and What Are the Terms? Why it matters: Transparency around how the fund operates—including fees, liquidity, and payout schedules—is critical. Ask yourself: Is the fund open-ended or closed-ended? Are there hidden fees that eat into returns? How often are distributions made? How AJX Capital answers: We offer a clear, investor-friendly structure with no hidden fees. Returns are paid on time, and you’ll receive regular reporting that outlines performance, upcoming projects or investment opportunities, and how your capital is working for you. ✅ 3. What Kind of Assets Will I Be Investing In? Why it matters: You want diversification—but also confidence that the asset class and markets are strategically selected for growth. Ask yourself: Does the fund invest in residential, commercial, or mixed-use properties? Are the markets growing or oversaturated? Is there a clear acquisition strategy? How AJX Capital answers: Our fund is diversified across residential and commercial properties in emerging and stable markets. We focus on value-add opportunities and below-market acquisitions, giving you both upside potential and downside protection. ✅ 4. How Are Risks Mitigated? Why it matters: All investments carry risk, but good operators have systems in place to protect capital and preserve returns. Ask yourself: Is there a clear risk management strategy? Does the team use conservative underwriting? Is there a buffer for market changes? How AJX Capital answers: Risk mitigation is built into every AJX deal. We negotiate aggressively, underwrite conservatively, and operate in-house—so we control every step from purchase to rehab to exit. Our focus is on long-term growth, not short-term hype. ✅ 5. How Will I Stay Informed About My Investment ? Why it matters: Passive shouldn’t mean out of the loop. Regular communication builds trust. Ask yourself: Will I receive consistent updates? Is reporting clear and professional? Can I speak to someone if I have questions? How AJX Capital answers: We believe in over-communication. You’ll receive regular performance reports, deal updates, and access to a dedicated investor relations team. We treat every investor like a long-term partner—not just a number.
By Mark Daguinod September 10, 2025
Property damage, vacancy stress, tenants skipping rent, late-night tenant calls. If you’ve experienced any of these, you already know that owning rental property isn’t always the dream it’s made out to be. While real estate remains one of the most powerful ways to grow wealth, the hands-on approach often brings more stress than returns. At AJX Capital, we believe there’s a better way. Real Estate Returns—Without the Hassle We offer a passive investment model designed for accredited investors who want to enjoy the benefits of real estate—without the headaches of being a landlord. Our Diversified Real Estate Fund allows you to earn consistent, attractive returns backed by real property, without any of the day-to-day burdens of ownership or management. Here’s How It Works: Your capital is pooled into our diversified fund. We lend that capital to carefully vetted real estate projects—primarily to AJX Homes, our in-house flipping and development team. You receive regular interest payments, secured by real estate assets. That’s it. No tenants. No maintenance calls. No market swings. Just steady, passive income. Why Investors Choose AJX Capital Our fund was designed with your financial goals—and your time—in mind. Here's what sets us apart: ✅ Consistent Returns We’re targeting projected annual returns of 10–12% , depending on the investment structure. ✅ Diversification Your investment is spread across multiple real estate projects , minimizing risk and volatility. ✅ Completely Passive No property management. No active involvement. Just reliable monthly interest payments. ✅ Asset-Backed Security All investments are secured by real estate collateral , providing an added layer of protection. Designed for Wealth Builders Like You Whether you’re looking to diversify your portfolio , preserve capital , or build a dependable passive income stream , our fund provides a proven alternative to traditional real estate investing—without the stress and unpredictability of being a landlord. Let’s Talk Curious if this opportunity is a good fit for your portfolio? Schedule a no-obligation call with our Investment Expert, Paul Dufour. He will walk you through the details, answer your questions, and help you understand how to make your money work for you—without lifting a hammer or chasing down rent checks.
By Mark Daguinod August 22, 2025
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.