Strategies

Our Approach

At Providence Capital Group our investment strategy leverages the current liquidity constraints in the real estate market, offering a well-structured solution for developers and investors in need of capital. As traditional lenders scale back, we step in with a straightforward approach: providing real estate-backed loans that are targeted, competitive, and aligned with market demands.

We pursue six key types of investments:

01

Residential Loan Refinance

02

Spec Build & New Development

03

Multi-Unit Fix & Flip

04

Traditional Bridge Loan Financing

05

Loan Guaranty

06

Multi-Family Development

Prioritizing High-Growth Areas

We selectively lend in regions where the local economy is strong and demand for residential real estate remains high. These high-growth areas are resilient to market fluctuations, ensuring that our investments are supported by stable and growing economic activity. By focusing on these regions, we position ourselves to capitalize on enduring demand, even in the face of rising interest rates and broader economic challenges.

Tapping Into Underserved Markets

Our strategy excels in markets where competition among private lenders is low, particularly within the Mountain West. We concentrate on loans ranging from $5 million to $25 million—a segment often overlooked by both individual investors and larger funds. This focus allows us to secure higher yields while maintaining favorable loan-to-value (LTV) ratios, providing our investors with strong returns from a market niche that offers both opportunity and stability.

Sources of deal flow

Loan Broker / Lender Referral

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Real Estate Broker Referral

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Mortgage Lenders

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Referrals

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Repeat Borrowers

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Partnering with Proven Builders

We work exclusively with seasoned developers and builders who have demonstrated success with projects similar to those we finance. By partnering with experienced professionals, we ensure that our loans are supported by capable hands, reducing the likelihood of project delays or failures.

Maximizing Returns with Strategic Interest Structures

A key element of our high internal rate of return (IRR) is our interest structure. We require prepaid interest and guarantee a minimum interest amount over the loan term, regardless of early repayment. This approach not only enhances our returns but also provides our borrowers with greater financial flexibility by alleviating the pressure of monthly payments. Our model is designed to be mutually beneficial, supporting both our financial goals and the cash flow needs of our borrowers.