Our Funds and Investment Strategies

DebtStar Capital operates a series of funds that make acquisitions and dispositions of notes in the residential and commercial sectors nationwide.

Michigan Fund- The objective of this fund is investment in primarily non performing and sub performing notes in markets across Michigan. Investing in Michigan today has a particular appeal as we believe presently, there is a favorably misaligned balance of risk and reward in select submarkets in this.  Michigan is an underserved market in that lenders have extensive distressed inventory on their books and many investors have simply chosen to avoid this market due to what is happening in Detroit. While we favor Michigan we do not invest in the “rustbelt cities” or blighted cities with high crime. 

Investment Strategy:

We are always focused on obtaining the highest rate of return for our investors. Critical underwriting and speed to liquidation are our primary focus. We acquire large portfolios of non performing or sub performing loans at substantial discounts, from hedge funds and financial institutions and then mitigate the losses and quickly and profitably turnaround the distressed notes through our liquidation platform. We generate profits through a hands on approach, implementing high velocity loan sales, short sales, loan payoffs, credit repair and refinance, loan modifications, deed in lieu, foreclosure, and either REO resale or leasing of the property.

Geographic Focus:

 While our market is nationwide we have a physical presence in Grand Rapids, Michigan and San Francisco, California. Our Servicing and Loss Mitigation is conducted with highly qualified national servicers who are licensed in each state in which we do business in providing us a broad national footprint.  

 Who we serve:

Institutional Lenders: We work extensively with Financial Institutions nationwide  to provide them with liquidity for their non performing debt and REO.

 Capital Partners- We provide above average returns to our capital partners who are high net worth individuals, family offices, private equity firms and hedge funds through our diligent underwriting, alignment of interests, and high velocity loan sales platform.

 Home Owners/ Borrowers- Our overriding focus is to identify quickly the best prudent workout solution for the homeowner. We always look for a win/win solution. Whether it is staying in the home as the owner under a modification of the loan, giving up title but remaining as a tenants, sometimes with an option to purchase, helping repair their credit and refinance, or assisting them in finding another property to relocate to.

 Commercial Property Borrowers – We acquire nonperforming notes secured by commercial property and by aligning with the sponsor we structure loan modifications if the property can cover the debt service. We often structure a JV, profit share or exit fee. If this is not possible we expeditiously gain title for repositioning of the asset and exit on resale.

 Note Investors- Through our extensive relationships and deal sourcing network, we provide lucrative investment opportunities for individual investors, on a note by note basis. We also provide investment management firms on a larger scale, NPN Packages and an opportunity to purchase REO homes and commercial property. We have available for resale, both non performing, re-performing, and performing notes as well as fee interests in property at very attractive yields.  .