Understanding LBC Capital Income Fund, LLC’s Conservative Lending Philosophy

In a market where risk is often masked by slick marketing and inflated promises, LBC Capital Income Fund, LLC stands firm on a simple belief: protecting capital comes first.

Our conservative lending philosophy isn’t flashy. It doesn’t chase yield at any cost. But it’s the reason our investors continue to receive steady income—and have never lost a dollar of principal in over 13 years.

Here’s a clear look at how we approach lending, why it matters, and what it means for the people who trust us with their money.

1. We Lend with First-Lien Protection Only

This is non-negotiable.

Every loan in our fund is secured by a first-lien trust deed on real property. That means if something goes sideways, we’re the first in line to recover funds from the asset.

No second liens. No unsecured debt. No “maybe it’ll work out.”

Our job is to protect your position before we even think about upside.

2. Low Loan-to-Value Ratios (LTV) = High Margin of Safety

We don’t lend based on dreams. We lend based on numbers.

That’s why our average LTV falls between 60–70%. Borrowers always have significant equity in the property, which gives us (and you) a buffer if the market shifts or the deal takes longer than expected.

The lower the LTV, the more cushion you have. Simple as that.

3. Short-Term Loans Only

We don’t make 5-year bets. Our average loan term is 6 to 18 months.

That gives us two key advantages:

1. More control over exposure in changing markets
2. Faster portfolio turnover, so we can adapt more quickly

When things change, we’re already getting repaid and redeploying into better opportunities. That’s a big part of why our portfolio stays stable.

4. Every Deal Is Underwritten In-House

We don’t outsource our judgment.

Our team underwrites every deal internally. We look at:

• The borrower’s track record
• Exit strategy
• Current and after-repair value
• Neighborhood comps
• Worst-case scenarios

If a deal doesn’t pass our stress test, we don’t fund it. End of story.

5. No Leverage in the Fund Itself

We don’t borrow against the fund. Ever.

Why? Because leverage cuts both ways. Sure, it can boost returns, but it also magnifies losses.

We’d rather sleep well—and make sure our investors do too.

That means the capital in our fund is always real. No hidden debt. No layers. Just clean, asset-backed lending.

6. Focus on Real Value, Not Market Hype

We’re not here to ride trends. We’re here to back deals that make financial sense.

Our borrowers are mostly experienced real estate investors who:

• Buy undervalued or distressed properties
• Add value through renovations or repositioning
• Exit via resale or refinancing

They’re not speculators. They’re operators. And we underwrite them accordingly.

7. Proven Track Record of Principal Protection

At the end of the day, all the talk about underwriting, LTV, and deal structure means nothing unless it works.

So here’s what matters:

• Zero principal losses in over 13 years
• Monthly distributions, on time, every time
• A repeat investor base that continues to grow

This is what conservative lending looks like in action.

Why It Matters to You

If you’re an accredited investor looking for a way to earn steady income without gambling on stocks or chasing shaky returns, our philosophy was built for you.

We’re not going to promise the moon. We’re going to show you exactly how we protect your capital, deliver monthly distributions, and stay transparent through it all.

Want to see how conservative lending adds up to dependable returns? Let’s connect.