LBC Capital Income Fund, LLC Contents
Overview: LBC Capital Income Fund………………………………………. 3
The Fund’s Investments and Benefits………………………………………. 4
A Compelling Market Opportunity…………………………………….….. 10
The Expertise Factor…………………………………………………….……… 13
The Fund’s Portfolio and Performance……………………………….…...17
Key Information for Investors………………………………………….…… 20
How to Contact Us……………………………………………………….…….. 25
LBC CAPITAL INCOME FUND, LLC 2 Overview: LBC Capital Income Fund
THE PORTFOLIO: DIVERSIFIED, HIGH-QUALITY LOANS
INVESTMENT OBJECTIVE: HIGHLY PREDICTABLE CASH FLOW WITH PRESERVATION OF CAPITAL
TRACK RECORD: ANNUAL RETURNS OF 8% OR GREATER OVER THE PAST FIVE YEARS*
FUND MANAGEMENT: LENDING BEE, A TRUSTED NAME IN THE PRIVATE LENDING INDUSTRY
STRONG ALIGNMENT OF INTERESTS BETWEEN FUND MANAGEMENT AND INVESTORS
LBC CAPITAL INCOME FUND, LLC 3 The Fund’s Investments and Benefits Investing for Strong, Steady Return Secured by Quality Residential and Commercial Real Estate
► PREDICTABLE MONTHLY DIVIDEND PAYMENTS
► POTENTIAL FOR SUBSTANTIAL LONG-TERM ACCUMULATION
► THE SECURITY OF REAL ESTATE COLLATERAL OFFERS PRINCIPAL PROTECTION
► NO CORRELATION
► LIQUIDITY
LBC CAPITAL INCOME FUND, LLC 5 With a Favorable Sharing Arrangement: 8% Preferred Return for Investors
Each Year, Until They Have Investors Receive… Received…
First… 100% 8% of Distributions Preferred Return (cumulative, non-compounded)
Thereafter… 50% of Distributions
LBC CAPITAL INCOME FUND, LLC 6 Maintaining a Well-Diversified Portfolio
RESIDENTIAL (1 to 4 units) MULTI-FAMILY HOUSING
INDUSTRIAL RETAIL
LBC CAPITAL INCOME FUND, LLC 7 Taking a Proactive Approach to Risk Control
EXPERT SELECTION PRUDENT LOAN-TO-VALUE RATIOS A Built-in Margin of Safety
Property Value
CALIFORNIA FOCUS Collateral Value in The Fund will Excess of Loan So even if only loan up property value At least 30% of to 70% of a were to decrease Property Value property’s value by 30%, the loan principal is still completely protected “BUSINESS PURPOSE” LOANS ONLY Maximum Loan Amount
70% of Property Value TITLE INSURANCE The average loan-to-value ratio of the portfolio is under 55%.
In case of a foreclosure, the property becomes an asset of the Fund and any rental income collected is distributed to investors. Any extra profit from the sale of the asset is distributed 50%/50% to investors and the Fund Manager.
LBC CAPITAL INCOME FUND, LLC 8 Ideal for a Wide Range of Investors
INVESTORS SEEKING PORTFOLIO INVESTORS FUNDING A SELF-DIRECTED DIVERSIFICATION RETIREMENT PLAN
OR, TOTAL RETURN
INVESTORS WHO LIKE REAL ESTATE OR, MONTHLY INCOME
MONEY MANAGERS, RIAS, FAMILY OFFICES
LBC CAPITAL INCOME FUND, LLC 9 A Compelling Market Opportunity A Growing Need for Timely Real Estate Financing
CALIFORNIA INVESTMENT-GRADE REAL ESTATE: A HUGE AND GROWING MARKET
OCTOBER 3, 2016
MASSIVE AMOUNTS OF FINANCING NEEDED
BUT BANK FINANCING IS INCREASINGLY DIFFICULT TO OBTAIN MARCH 16, 2017
YOUR MONEY MATTERS
Bottom Line: There is a growing unmet need among real estate borrowers for both short-term and long-term real estate financing, particularly in the $100,000 to $2-million range. The LBC Capital Income Fund is well-positioned to meet this need.
LBC CAPITAL INCOME FUND, LLC 11 The Fund’s Response: Ready Capital and Streamlined Underwriting
EXPERTISE IN OUR MARKETS LESS NEED FOR DEEP DILIGENCE A key reason we can speed up the underwriting process is ON BORROWERS that we lend primarily in California markets where we know By limiting our lending to moderate loan-to-value ratios, we the demographics, regulations, borrowers, and properties. + make sure borrowers lock-in a strong equity position in the In locales where we don’t have deep expertise, we maintain value of the underlying property. This cushion protects our relationships with local real estate agents who are experts in investors’ principal, so it is not necessary for us to perform their area and can give us quick, authoritative property the kind of extensive, time-consuming borrower underwriting valuations. that many of our competitors must.
STRONG NEGOTIATION POSITION Because our borrowers typically need to access financing in a hurry, our ability to execute quickly puts us in a strong position to negotiate favorable terms for the benefit of our Fund investors.
LBC CAPITAL INCOME FUND, LLC 12 The Expertise Factor
13 A Trusted Name in the Private Lending Industry
► FOUNDED IN 2003
► TODAY, A LEADER
► A NETWORK OF TRUSTED RELATIONSHIPS
LBC CAPITAL INCOME FUND, LLC 14 Experienced Real Estate/Investment Team
Boris Dorfman Founder & Fund Manager
Vladimir Isperov Chief Lending Officer
Kevin Tenin VP Business Development
LBC CAPITAL INCOME FUND, LLC 15 Top-Echelon Service Providers
LOAN SERVICER ATTORNEY
The largest servicer of private mortgage Dennis Doss is the go-to legal expert on loans in the nation California mortgage finance and real estate offerings; a sought-after lecturer
CPA / AUDITOR
We ventured out of our local geographical area to find the most specialized expertise in mortgage banking
LBC CAPITAL INCOME FUND, LLC 16 The Fund’s Portfolio and Performance The Fund’s Diversified Loan Portfolio As of July 15, 2017
61 Collateral Properties In 40 California Localities
# OF # OF OUTSTANDING PROPERTY TYPE PROPERTIES LOCALITIES LOAN BALANCE
Residential (1 to 4 units) 49 34 $11,660,925
Multi-Family Housing 3 2 $730,000
Industrial 4 4 $1,411,000
Retail 4 4 $1,200,000
Vacant Land 1 1 $250,000
LBC CAPITAL INCOME FUND, LLC 18 The Fund’s Performance As of May 31, 2017
Growth of a $100,000 Investment in the Fund* When an 8% annual return (Net of fees) is reinvested each year and $150,000 $149,108 allowed to compound: ▪ The initial investment virtually doubles over the first 9 years…
▪ Quadruples over 18 years…
▪ Grows by more than 580% over 25 years.
$100,000 2012 2013 2014 2015 2016 2017 Jan. - May 8.58% 8.35% 8.21% 8.09% 8.36% Yearly Returns*
LBC CAPITAL INCOME FUND, LLC 19 Key Information for Investors The Fund Structure
INVEST LENDS LBC Capital Fund Investors Income Fund, Borrowers LLC PAYS PAY MONTHLY STEADY DIVIDEND INTEREST
Collateral Properties
LBC CAPITAL INCOME FUND, LLC 21 A High Level of Investor Service
INVESTORS KEPT INFORMED
ANNUAL AUDIT
ACCESSIBILITY
LIQUIDITY
LBC CAPITAL INCOME FUND, LLC 22 Fund Facts and Terms
The Fund
Fund Manager
Maximum Fund Size
Minimum Investment
The Term of the Fund
Fees
Preferred Return
Liquidity
LBC CAPITAL INCOME FUND, LLC 23 Disclaimer
LBC CAPITAL INCOME FUND, LLC 24 How to Contact Us
6350 Laurel Canyon Blvd. 818.761.7234 Suite 340 [email protected] North Hollywood, CA 91606 www.LBCcapital.com
BORIS DORFMAN KEVIN TENIN FUND MANAGER V.P. BUSINESS DEVELOPMENT
6350 Laurel Canyon Blvd. c. 323.459.9065 6350 Laurel Canyon Blvd. c. 323.459.8303 Suite 340 o. 818.761.7234 ex. 303 Suite 340 o. 818.761.7234 ex. 306 North Hollywood, CA 91606 [email protected] North Hollywood, CA 91606 [email protected]
www.LBCcapital.com www.LBCcapital.com
LBC CAPITAL INCOME FUND, LLC 25 6350 Laurel Canyon Blvd. 818.761.7234 Suite 340 [email protected] North Hollywood, CA 91606 www.LBCcapital.com