Source Capital Funding, founded by a La Jolla native 17 years ago, is a private lender offering an alternative to traditional bank loans.
The company has grown from a single $50,000 investment to a funding portfolio of more than $550 million in loans secured by real estate. It also has expanded from operating in California to now being licensed in five states, also including Arizona, Texas, Colorado and Minnesota.
Source Capital Funding is state- and federally-licensed, bonded and insured and has an A+ rating from the Better Business Bureau.
“We’re really proud of what we’ve accomplished because we’ve done it locally and from the ground up,” said founding partner Sacha Ferrandi. “We’re not a large firm; we’re a three-person firm.”
The team has a combined 40 years’ experience and includes partner Ryan Burns, who comes from an extensive background in hedge funds and private equity, and Executive Officer Marie Gleason.
Source Capital Funding is focused on real estate assets when granting loans, as opposed to traditional bank loans that are based on credit and financials. Many potential borrowers are unaware of the options available to them outside of a typical loan.
“Source Capital is focused on the asset that you’re using as collateral, the real estate,” said Ferrandi, who worked in sales for Fortune 500 companies before taking an interest in the private lending sector of the real estate market. “At the end of the day, that is what is securing our loan. Unlike a bank, we’re not primarily concerned about borrower credit … or if they had a past bankruptcy or foreclosure. So there’s a big secondary market for our services for those people who can’t qualify at a bank.”
He added that “it is important to know that because we’re using private investor capital, our rates and fees are significantly higher than if you go to a bank.”
Source Capital Funding also has a different approach to its business model than most in the industry.
“We’re very conservative,” Ferrandi said. “We only lend up to a maximum of 65 percent of the current asset value. Banks typically will provide up to 80 percent to 90 percent financing. From a private, asset-based lending standpoint, that’s very risky.”
One of the company’s goals is to attract more investors, who Ferrandi said have a good opportunity to diversify their portfolios with Source Capital Funding.
“Really the ultimate goal at this time is to expand our investor base and offer more opportunities to those investors who are interested in trust deed investing,” he said. “That really is the backbone of our business, our investors. We do all the due diligence and post-funding management and they’re the ones who get to reap the capital returns monthly on their investment. It’s a win-win scenario that has been built on experience and trust for over two decades.”
The company also takes pride in the extensive number of positive online reviews it has received from clients and investors who have called Source Capital Funding “reasonable, safe [and] secure” and said it offers “unmatched service.”
For more information about loans and investing opportunities through Source Capital Funding, call (858) 705-6144 or visit hardmoneyfirst.com.
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