Collateral-First Underwriting
Investment decisions begin with asset quality, loan-to-value, and realistic downside scenarios before return considerations.
A disciplined, collateral-first approach focused on downside protection.
Our Investment Strategy
VRB Capital invests in secured mortgage notes backed by residential, multifamily and hospitality assets, with a focus on capital preservation and disciplined execution across market cycles.
Investment decisions begin with asset quality, loan-to-value, and realistic downside scenarios before return considerations.
Concentrated exposure to residential, multifamily and hospitality assets where we have deep market familiarity and underwriting experience.
Our focus is on sub-performing and non-performing loans where pricing, structure, and collateral create opportunities for downside protection and risk-adjusted outcomes.
A disciplined, repeatable approach designed to navigate complex situations across varying interest-rate and market environments.
Why Secured Mortgage Notes
We believe secured mortgage notes offer an attractive way to invest in real estate credit with defined downside protection and multiple paths to resolution.
Secured mortgage notes sit ahead of equity, with contractual rights and remedies supported by the underlying real estate.
Investments are secured by tangible collateral, with underwriting focused on basis, loan-to-value, and recovery scenarios.
Acquiring sub-performing and non-performing notes at a discount to unpaid principal balance can create asymmetric risk profiles through structured resolution outcomes.
Note investments offer contractual frameworks and multiple potential exit paths, including payoff, refinance, modification, or asset-level resolution.
Underwriting & Risk Management
Our underwriting process is designed to prioritize capital preservation by focusing on collateral quality, structural protections, and realistic downside scenarios.
Key elements of our approach include:
Each investment is underwritten at the asset level, with a focus on location, property quality, cash flow durability, and replacement cost.
We underwrite to conservative loan-to-value and recovery assumptions, avoiding reliance on aggressive rent growth or market appreciation.
Investments are evaluated under multiple downside scenarios, including delayed resolutions, higher interest rates, and changes in operating performance.
Every investment is underwritten with a clear path to resolution at entry, including potential outcomes such as payoff, refinance, modification, or asset-level execution.
We actively monitor investments and engage as needed to protect capital and manage risk throughout the life of each position.
Deal Sourcing & Execution
We source investments through direct, institutional relationships and execute through a disciplined, principal-led process.
Direct sourcing from banks, private lenders, special servicers, and asset managers.
Transactions executed directly, without intermediation.
Consistent team involvement from review through execution.
Focus on situations where complexity and structure create attractive risk-adjusted outcomes.
Investment Structures
Transaction-by-transaction exposure to individual note investments.
VRB Capital invests alongside its partners.
Defined decision-making and transparent reporting.
Structured to accommodate varying capital commitments.
Alignment of Interests
We invest our own capital alongside our partners on each transaction.
The same principals responsible for underwriting remain involved throughout the life of each investment.
We approach each investment with a focus on disciplined execution, capital preservation, and reputation.
$50,000 minimum, with higher thresholds in select structures to align with deal size and investor profile.
Illiquid—plan to hold full term, with secondary sales sometimes possible but never guaranteed; each vehicle is structured with a defined hold period so investors can plan their capital commitments with clarity.
Key risks include borrower default and property value deterioration, which we mitigate by buying at a discount, applying strict underwriting, diversifying exposures, and focusing on basis, collateral quality, and multiple exit paths that are monitored throughout the life of the investment.
We review the borrower, property value, liens, payment history, and potential exit scenarios to understand both current performance and the probability of different workout or payoff outcomes.
We pursue a workout first and only move to foreclosure if needed (often 3–24 months depending on the state), always seeking the path that maximizes recovery while balancing time, cost, and counterparties involved.
Mainly non-performing residential, multifamily (apartments), hotels, motels and residential notes—with some performing positions—where structure, pricing, and collateral combine to create attractive risk‑adjusted profiles.
We generally target 9–15% annualized returns, sometimes higher on successful workouts, while emphasizing disciplined underwriting over chasing headline yields; actual results vary by deal.
For accredited investors as defined under SEC Rule 501 of Regulation D. Past performance is not indicative of future results.