Capstone Ventures Group offers short-term real estate investments with strong, capped returns through the acquisition and conversion of residential properties into upscale, up-to-16-bed senior care homes that meet the growing demand for high-quality assisted living in the Greater Houston area.

We focus on properties with solid potential for conversion and long-term income stability. To move quickly when the right property is identified, we raise committed investor capital to cover acquisition equity, closing costs, architectural and professional fees, and early construction expenses until lender disbursements begin. Our financing partners—hard-money lenders—provide up to 70–75 percent of loan-to-cost or after-repair value, with the remaining balance funded through investor participation.

This structure combines the security of a fixed 12 percent annual return with the upside of a capped bonus, clearly defined to protect both investor and project. Investor funds are not disbursed until a property is under contract and due diligence is complete, and the projected timeline from first disbursement to full repayment is approximately 18 to 24 months. By investing in this acquisition strategy, you participate in a repeatable model designed to capture value and deliver strong, capped returns in the senior housing sector.

Investor Opportunity: 12% annual return plus capped bonus

Key Highlights

• Annual Return: 12% simple interest.
• Capped Bonus: One-time cash bonus ("kicker") paid at refinance, total return capped and defined in legal agreements.
• Estimated Term: 18–24 months from first disbursement of funds.
• Security: Second deed of trust and security interest in the property and project assets.
• Dedicated Operator: Long-term lease in place with a licensed assisted-living operator (name withheld).

Note: Return timeline begins only upon first disbursement of funds.

How It Works

1. Funding Sources

• Hard Money Loan: Primary financing for acquisition and construction.
• Investor Funds: Used only after a property is under contract and due diligence is complete. Funds cover:
  Remaining acquisition costs
  Soft costs (permitting, professional services, legal, accounting)
  Early construction expenses while awaiting the first lender draw.

2. Acquisition & Pre-Construction

• Identify and contract a property.
• Complete inspections, appraisals, and full due diligence.
• Close on the hard money loan and investor funding.
• Obtain permits and mobilize contractors.

3. Construction & Stabilization

• Renovate to meet Type A Personal Care Home standards.
• Install all required furniture, fixtures, equipment, and life-safety systems.
• Prepare the licensed operator to begin operations.

4. Refinance & Investor Payback

• Capstone refinances the property based on its stabilized, licensed, income-generating value.
• Refinance proceeds repay:
  Hard money loan.
  Investor principal plus accrued 12% interest.
  The capped bonus (kicker) defined in legal agreements.
• Investors are fully paid back with no ongoing obligations.

5. Long-Term Hold

• Capstone retains ownership.
• The dedicated operator pays rent under a long-term lease.
• Investors exit fully at repayment.

Timeline (Estimated)

• Months 0–2: Property identification, contract, and due diligence. No investor funds disbursed until complete.
• Months 2–10: Acquisition closing and construction.
• Months 10–18: Licensing, operator lease-up, and stabilization.
• Months 18–24: Permanent refinance and full investor repayment.

Investor Terms

• Interest Rate: 12% annualized, simple interest.
• Bonus (Kicker): One-time capped cash bonus, defined in legal agreements.
• Total Return: 12% annual interest plus the capped bonus, paid at refinance.
• Security: Second deed of trust and security interest in the property and project assets.
• Distribution: All returns, including the capped bonus, are paid from refinance proceeds.

Frequently Asked Questions

When does my return timeline begin?
Only after a property is under contract, due diligence is complete, and your funds are first disbursed.

How will my investment be used?
To complete the acquisition, pay soft costs and professional fees, and provide early construction capital while waiting for lender disbursements.

What is my total return?
12% annual interest plus a capped bonus, paid at refinance. The total return is capped and defined in the legal agreements.

How do I get paid back?
Capstone refinances the property based on its stabilized, licensed, income-producing value. Refinance proceeds repay the hard money loan and your full capped return.

Do I own part of the property?
No. This is a secured investment. After repayment, you have no ownership or ongoing obligations.

What if the refinance takes longer?
Interest continues to accrue at 12% until payoff, with the total return capped per the legal agreements.

What protects my investment?
A recorded lien on the property, a security interest in project assets, and comprehensive legal agreements detailing the return schedule and distribution protocol.

Disclaimer

This overview is for informational purposes only and does not constitute an offer to sell or a solicitation to buy securities. All investment terms—including the capped total return, return schedule, and distribution protocol—will be defined in binding legal agreements. Investors should consult their own legal, financial, and tax advisors before committing funds.

Please contact us at [email protected] to request the full investor packet to review projected returns and security details.