Chicago, Illinois (PRWEB) July 31, 2011
Clopton Capital, a seasoned and profitable Chicago based commercial real estate lending company is announcing its intention to form a strategic hedge fund. The fund will be focused solely on taking advantage on the fractured commercial real estate market and provide a return to the fund that simply cannot be attainable in any other market on a similar basis.
The fund will be based solely on the investment criteria that any capital deployed will be secured two to one against income producing commercial real estate on a capitalization rate appropriate for the surrounding area. For example, Clopton recently deployed capital for a rehabilitation loan located in the Chicago area. Despite contractor disputes and concerns, the loan was underwritten to then surrounding cap rate and the property, once stabilized in less than 90 days, was valued at a 50% value to contributed capital by Clopton exactly.
This opportunity represented a 13% return for a 120-day investment of capital. Annually this represents a 39% return on capital, a previously unattainable number considering the low risk involved. The benefit of investing into Clopton alternative investments is that you receive a high return on capital and in the event of a default; you receive an even higher return.
In the event of a default, the property would be seized, and all contributed capital including the loan amount would be recovered by the lender. This would represent a significant gain for any investor in this type of commercial alternative investment. This investment model is structured so that the lender is by far in an advantage and because of this there is an extremely low incidence of default.
Clopton Capital is a commercial loan company that provides commercial real estate loans nationwide. Clopton prides itself on privacy and client relationships.