Our Investment Strategy

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Overview of Strategy

At Borges Capital, our strategy is grounded in disciplined underwriting, first-position security, and conservative loan structures. We focus on opportunities where collateral quality and borrower execution mitigate downside risk and align with investor objectives for stability and consistent income potential.

Private real estate credit

First-position loans

Short to mid-term durations

Underwriting Standards

Borges Capital’s real estate credit strategy is rooted in providing senior, first-lien financing for borrowers meeting our rigorous underwriting standards. Unlike equity-oriented investments, first-position credit gives the Fund priority in the capital structure, with repayment rights senior to other claims on the underlying property. This structure aims to enhance recoverability and protect investor capital, while offering a clearly defined source of predictable income.

LTV Discipline

Borrower Vetting

Property Type Focus

Risk Management

Collateral focus

Borges Capital’s investment strategy is centered on secured lending backed by tangible real estate assets. The Fund prioritizes first-position collateral on residential luxury construction properties located in markets with strong demand, supply constraints, and demonstrated livability. Each investment is underwritten with a primary focus on collateral quality, conservative loan-to-value ratios, borrower equity, and market fundamentals. By emphasizing asset-backed lending and disciplined underwriting standards, the Fund seeks to provide meaningful downside protection across market cycles.

Exit strategies

Every investment originated by Borges Capital is underwritten with clearly defined exit strategies established at loan inception. Primary repayment sources typically include project completion and refinance, sale of the underlying asset, or borrower capital events. In addition to the primary exit, secondary and tertiary repayment scenarios are evaluated to ensure the Fund maintains flexibility in varying market conditions. This structured approach to exit planning is designed to support timely capital recovery while mitigating reliance on any single outcome.

Conservative Valuations

Borges Capital employs a conservative underwriting philosophy that prioritizes risk mitigation over aggressive projections. Assumptions related to asset values, timelines, construction costs, and exit pricing are intentionally stress-tested to account for potential market volatility and execution risk. By underwriting to realistic scenarios rather than best-case outcomes, the Fund seeks to maintain resilience across economic cycles while aligning investor expectations with prudent, risk-adjusted decision-making.

Portfolio Construction

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Diversification principles

Deal selection criteria

Geographic Focus

Our geographic focus is intentionally concentrated on the Arizona real estate market. By specializing in a well-defined local footprint, we leverage deep market insight and relationships to identify opportunities that meet our disciplined lending criteria. Our familiarity with the region’s economic drivers, valuation trends, and regulatory landscape enables us to act decisively and responsibly on behalf of our investors.

Common Investor Questions

Who can invest?

Borges Capital works exclusively with accredited investors as defined under Regulation D.

What is the investment focus?

The Fund focuses on secured, first-position real estate loans with an emphasis on capital preservation and risk management.

Are returns or distributions guaranteed?

No. All investments involve risk, including the potential loss of principal.

Is the investment liquid?

Private real estate credit investments are generally illiquid and intended for long-term investors.