The primary difference is that private credit focuses on lending, while multifamily deals focus on property ownership.

With private credit, investors act as lenders, earning fixed, predictable income backed by real estate collateral, typically with shorter durations (around 6–9 months). 1912 Investors are participating in a diversified portfolio of loans, rather than a single asset, which can help reduce concentration risk. The focus is on capital preservation and consistent cash flow.

With multifamily investing, investors are equity owners in a property, or they may invest through a fund or REIT. Returns are tied to property performance, market appreciation, and eventual sale, often over a longer time horizon (3–7+ years), with less predictable cash flow.

In short:

Private Credit: Debt investment, asset-backed, short-term, income-focused

Multifamily: Equity investment, market-driven, long-term, appreciation-focused

Both can play a role in a portfolio, but they serve different objectives depending on an investor’s goals.

The returns presented are fixed returns by investment class, but they are not guaranteed. Returns are generated from interest paid by borrowers on short-term, asset-backed loans. While the strategy is designed to prioritize capital preservation, all investments carry risk. To date, 1912 Capital has consistently made all monthly distributions to investors.

Investor returns are protected through a combination of conservative underwriting, asset-backed security, and active risk management.

To date, we have completed three foreclosures, all with zero losses to investors. In each case, the properties were quickly resold, often to other borrowers within our network at values equal to or greater than the outstanding loan balance.

We mitigate risk and return through:

-First-position lien on every loan

-Conservative leverage (~65% loan-to-value)

-Short loan durations (target ~6 months)

-Experienced, repeat borrowers

While our standard loan term is six months, extensions are common in this asset class. Our current average loan duration is approximately nine months, reflecting real-world project timelines while still maintaining a short-duration strategy.

150+ loans funded with a low default rate (~2%) and zero realized investor losses to date. While some loans require extensions or active management, overall performance has remained strong and consistent. 1912 Capital has delivered an average 12% annual interest payout and has never missed a payment.

If a borrower is unable to repay, we take a proactive, structured approach:

We first pursue a resolution, typically through a structured extension or modified repayment plan

If necessary, we enforce our first-position lien to take control of the asset

This may ultimately result in foreclosure and an orderly sale of the property

At every stage, our priority is to protect investor capital and maximize recovery.

Fund II is designed to be simple, transparent, and aligned with investors:

- No hidden fees at the investor level

- Returns are quoted net to investors

1912 Capital generates revenue primarily through borrower-paid interest and fees, with average borrower rates around 18%.

Full details are outlined in the Private Placement Memorandum

At the end of the 2-year term, investors can choose to withdraw their capital or roll their investment back into the fund, subject to availability. Our goal is to provide a seamless transition so investors can continue earning consistent returns without interruption if they choose to remain invested.

No, 1912 Capital has not issued any capital calls to date. The fund is structured to operate within its committed capital base, and our short-duration loan strategy allows capital to be recycled efficiently without requiring additional contributions from investors.

Our focus on conservative leverage, strong deal selection, and active portfolio management is designed to maintain liquidity and minimize the need for future capital calls.

Investors receive a Form 1099, not a K-1.

Because investors participate as lenders rather than equity owners, returns are generally treated as interest income. Interest is typically reported when it is paid or made available to the investor.

This structure simplifies tax reporting compared to K-1 investments, which often involve more complex filings and delays.

1912 Capital recommends that investors consult their tax advisor regarding their specific situation.