Why Expert Loan Underwriting Makes LBC Capital Income Fund, LLC’s Debt Fund Safer

Everyone talks about returns.

But if you’ve been around the block as an investor, you know the real question isn’t how much—it’s how safe. What’s behind those numbers? What happens when things go sideways? And who’s doing the work to keep the capital protected?

At LBC Capital Income Fund, LLC, our answer starts and ends with one thing: expert loan underwriting. It’s the backbone of our fund—and the reason we’ve delivered fixed monthly income with zero principal losses for over 13 years.

If you’re looking for predictable yield without gambling on market momentum, let’s take a closer look at what smart underwriting really looks like—and how we make it work for our investors.

1. Underwriting Isn’t a Checkbox—It’s a Filter

A lot of lenders claim to do due diligence. But more often than not, it’s a surface-level checklist: LTV looks fine, borrower seems okay, let’s go.

That’s not how we work.

At LBC Capital Income Fund, LLC, underwriting is our filter. It’s where we say no to 90% of the deals we see—and only move forward with loans that meet our strict criteria:

• First-lien position only
• Conservative LTVs (typically 60–70%)
• Short-term, interest-only loans (6–18 months)
• Experienced borrowers with clear exit strategies
• Real collateral in strong markets

If any of those pillars wobble, we walk.

2. We Do It All In-House

Outsourcing underwriting is like buying a car based on someone else’s test drive. It might be faster, but you’re taking on risk you don’t fully understand.

That’s why our underwriting process is 100% internal. Our credit team vets every single deal ourselves—from borrower history to asset quality to exit timeline. No middlemen. No third-party shortcuts.

We get our hands dirty. We ask the hard questions. We look at worst-case scenarios before we ever talk about upside.

And if the deal can’t withstand that kind of pressure—it’s out.

3. We Stress-Test Every Scenario

What happens if the property sits on the market longer than expected? What if rates shift? What if the borrower needs more time?

We build all of that into the underwriting model.

Our team runs every deal through a stress test, assuming:

• Lower resale values
• Longer timelines
• Unexpected costs

If the numbers still make sense under pressure, we’re in. If not? No amount of charm or potential is going to change our minds.

This is how you avoid nasty surprises. And it’s why our investors sleep easy.

4. We Focus on the Exit Before We Enter

The most important question in any deal isn’t about the property—it’s about the exit.

• Is the borrower flipping or refinancing?
• Is the market deep enough to support their resale?
• Do they have a plan B (and a plan C)?

We don’t fund deals with “fuzzy exits” or wishful thinking. If there’s no clear, realistic exit strategy, the deal doesn’t make it into the fund.

This forward-thinking approach protects capital and ensures we stay liquid and agile, even when markets shift.

5. Borrowers Don’t Just Get Approved—They Get Vetted

We’re not in the business of betting on strangers.

Every borrower goes through a thorough review, including:

• Track record of successful projects
• Personal and business credit history
• Liquidity and financial backing
• Reputation in the market

We want to work with pros who’ve done this before and have skin in the game—not weekend warriors looking to try out a flip.

6. We Never Chase Yield at the Expense of Risk

We’ve seen funds chase higher returns by loosening standards, bumping LTVs, or funding second liens.

Not here.

At LBC Capital Income Fund, LLC, protecting principal always comes first. We’d rather pass on a loan that looks “good on paper” than risk investor capital chasing a few extra basis points.

That’s the difference between a real strategy and a marketing story.

7. The Result: A Safer, More Predictable Fund

This isn’t just theory. It’s a process that’s produced results:

• Zero principal losses in 13+ years
• Monthly income distributions, on time
• A loyal investor base that keeps growing

It all starts with how we underwrite. And that’s why we spend more time at that step than anywhere else.

When the foundation is strong, the rest holds up.

8. Why It Matters for You as an Investor

If you’re an accredited investor looking for:

• Income that doesn’t depend on market timing
• Capital preservation you can trust
• A team that treats your money like their own

…then underwriting should be at the top of your list.

Ask how the deals are sourced. Ask who underwrites them. Ask what happens when things don’t go as planned.

We’ll show you.

In Lending, What You Say No To Matters Most

Smart underwriting isn’t about saying yes—it’s about knowing when to walk away.

That’s how you protect investor capital. That’s how you keep income flowing. And that’s how we’ve built one of the most consistent debt funds in the market.

If you’re ready to stop guessing and start earning from a strategy that actually prioritizes your risk, let’s talk. LBC Capital Income Fund, LLC was built for this.