Capital at Work.

Fund II provides short-term, first-position, asset-backed real estate loans primarily to experienced residential real estate investors. The Fund focuses on fix-and-flip, renovation, and other short-duration residential investment projects in selected affordable Midwest and central U.S. markets.

The strategy is built around disciplined real estate lending, with an emphasis on the underlying property value, borrower experience, project economics, conservative leverage, and clearly defined exit strategies.

No. Fund II is a real estate lending strategy. Rather than acquiring and operating properties as an equity owner, 1912 Capital provides financing to real estate investors and secures its loans with a first-position lien on the underlying property.

The Fund seeks to generate income primarily from its lending activities rather than relying on long-term property appreciation.

Fund II primarily finances residential investment properties, including single-family and multifamily homes, as well as similar residential projects being acquired, renovated, repositioned, or sold by experienced real estate investors.

1912 Capital focuses on projects where there is identifiable collateral value, a defined business plan, and a clear path to repayment through the sale or refinance of the property.

Fund II focuses primarily on selected affordable Midwest and central U.S. markets where we believe housing affordability, population and employment trends, investor activity, and demand for residential housing can create attractive lending opportunities.

We intentionally focus on markets where housing values have generally remained more closely tied to local incomes and replacement costs and have not experienced the same levels of rapid appreciation seen in many coastal and other highly competitive markets.

Capital may be deployed through targeted market tranches, allowing Fund II to strategically expand into markets where the 1912 Capital team identifies compelling lending opportunities.

Our strategy emphasizes first-position liens, asset-backed lending, conservative leverage, short loan durations, borrower underwriting, and clearly defined exit strategies.

1912 Capital generally limits loans to no more than 65% of loan-to-after-repair value (LTARV). This is intended to create an equity cushion between our loan exposure and the projected completed value of the property.

We also focus on affordable housing markets where we believe underlying property values are supported by local housing demand and affordability.

These measures are designed to help manage risk, but they do not eliminate it. Borrowers can default, property values can decline, projects can experience delays or cost overruns, and investors may lose some or all of their investment.

Maintaining a maximum loan-to-after-repair value of approximately 65% is a core part of our underwriting strategy.

The objective is to create a meaningful equity cushion between the amount we lend and the property’s projected value after renovation. If a project does not go according to plan, that additional margin can provide greater flexibility to work through the loan, take control of the collateral, complete the project, wholesale the property, or sell it.

Yes. When you invest in 1912 Capital Fund II, you invest in a portfolio of real estate-backed loans rather than a single loan or property.

Your capital participates across multiple borrowers, properties, and markets within the Fund. This portfolio approach provides several potential benefits, including greater diversification, reduced exposure to the performance of any single borrower or property, and access to a broader pool of lending opportunities.

Rather than relying on one loan to perform, your investment benefits from the collective performance of the Fund’s overall loan portfolio.

Fund II involves investment risk. These risks may include borrower default, declining real estate values, and changes in local housing markets and broader economic conditions.

One way 1912 Capital seeks to manage these risks is by focusing primarily on affordable housing markets throughout the Midwest and central United States. We generally target markets where home values remain more closely aligned with local incomes and replacement costs, and where appreciation has historically been more measured than in many coastal or rapidly appreciating markets.

We believe this approach can help reduce exposure to markets that have experienced significant price appreciation and may be more vulnerable to larger corrections. Combined with our general maximum of 65% loan-to-after-repair value (LTARV), first-position liens, short-duration loans, and disciplined underwriting, thoughtful market selection is an important part of our overall approach to managing risk and protecting investor capital.

1912 Capital holds a first-position lien on the properties securing its loans. If a borrower defaults and 1912 Capital ultimately takes control of the property through the applicable legal process, we have multiple potential exit strategies.

Depending on the property and market conditions, we may wholesale the property to our established network of fix-and-flip investors, or we may complete the renovation and sell the finished property.

To date, we have experienced four borrower defaults where we ultimately took control of the underlying property, and 1912 Capital generated a profit on all four situations.

This is another reason our underwriting is focused on maintaining conservative leverage, generally lending at no more than 65% LTARV. The objective is to create an equity cushion between our loan exposure and the property’s projected completed value, providing additional flexibility if a project does not go according to plan.

While our historical experience with these four situations has been positive, future outcomes are not guaranteed. Foreclosure, property disposition, renovation costs, market conditions, expenses, and changes in property values can affect recoveries, and losses remain possible.

For investments of $1 million or more, 1912 Capital may utilize a third-party escrow account to help manage the timing of capital deployment.

Investor funds are held in escrow while 1912 Capital identifies and prepares qualified borrower loans for funding. Our goal is to deploy capital efficiently, and we typically expect funds to be deployed within approximately 14–30 days.

Once capital is ready to be put to work, funds are released from escrow and deployed across the Fund’s diversified portfolio of short-term, first-position, asset-backed loans.

This process allows larger investors to secure their investment while helping 1912 Capital responsibly coordinate incoming capital with our borrower loan pipeline.

The opportunity is intended for eligible U.S. accredited investors who satisfy the requirements described in the Fund’s offering documents and are accepted by the Fund.

Prospective investors should review the current Private Placement Memorandum (PPM), subscription documents, eligibility requirements, and other offering materials before making an investment decision.