Summary
Capital City Funding LLC ("CCF" or "the Manager") acquires and finances mortgage notes, liens, judgments, and other paper secured by real estate. CCF operates this website as South Dakota Private Lending. Some of that activity is funded by private lenders who lend to CCF in exchange for a promissory note. Please read the points below before you consider lending.
1. A lender is a creditor of CCF
A note is a debt obligation of CCF. It is not a deposit, it is not insured by any government agency, and it does not give the lender ownership of CCF or of any property.
2. Each deal is secured by a specific security instrument
The collateral for a lender's note is the security instrument or instruments named in that deal's documents. Examples include a mortgage or deed of trust, an assignment of a note and lien, a collateral assignment, or a UCC filing. Multiple lenders may fund the same deal, and they share that deal's collateral Pari Passu, meaning proportionally and with no lender ahead of another.
3. The security is generally held by CCF, not by the individual lender
Unless a deal says otherwise, the security instrument stays in the name of CCF and is not assigned to each lender. Whether and where it is recorded is stated in the deal summary.
4. The Manager decides how to manage the collateral. After a deal is funded, the Manager uses its best judgment at the time to decide how to manage, modify, extend, enforce, or sell the collateral. That can include forbearance, restructuring the underlying loan, foreclosure, holding and selling property, or releasing a lien. Lenders do not vote on these decisions, and the Manager is not required to take any particular action.
5. Collateral reduces risk but does not remove it
Property values can fall, foreclosure can be slow and costly, liens can be junior to other claims, borrowers can default or file bankruptcy, and title or documentation problems can weaken a lien. A lender can lose some or all of the money lent.
6. Private notes are not liquid
There is no market for these notes. They generally cannot be sold or transferred without CCF's consent, and early repayment is at CCF's discretion.
7. Conflicts of interest exist
CCF's principal operates other real estate businesses and may invest alongside lenders or on similar opportunities. CCF or its affiliates may earn fees or profit from a deal.
8. No guarantee and not an offer
Nothing on this page promises any return or outcome. Past experience does not predict future results. This page is a general disclosure and is not an offer to sell or a solicitation to buy any security. Notes are offered only to persons or entities with whom CCF has a prior existing relationship and who are accredited investors, or in limited cases who have enough financial knowledge and experience to evaluate the risks, and only where permitted by law. If this page and a signed deal document differ, the signed document controls.
Want the full disclosure? The complete version covers each of these points in detail, including lien priority, enforcement, fees, and a plain language glossary. Request it through our contact form or call 320.365.0111.