Clark St Capital

Investment thesis

Two strategies, one operating principle.

We do well only when our investors do well. Every gate in our process is calibrated to LP returns first; sponsor economics are a downstream consequence. The two products below are different tools for that same posture.

Live now · For monthly income, shorter duration

The debt fund.

The Clark St Capital debt fund originates first-position loans to vetted Connecticut flippers. The fund holds first lien on every property; borrowers pre-fund six months of interest into escrow at closing; loans run twelve months. LPs receive monthly interest distributions, with the option to roll distributions back into the fund.

Minimum
$100,000
Term
12 months
Distribution
Monthly
Geography
Connecticut
Position
First-lien mortgage
Wrapper
Reg D 506(c)

The 12-month cycle

Borrower commitments above the rule. LP receipts below.

Every loan runs the same arc. Six months of interest sit in escrow at closing; out-of-pocket payments cover months seven through twelve; sale or default closes the loan. LPs see monthly distributions throughout.

Months 1–6 · Escrow-funded

Loan closes; interest pre-paid through month six.

First-position lien recorded. The borrower has pre-funded six months of interest into escrow, so months one through six are covered before the rehab begins. LPs receive monthly interest distributions throughout this phase.

Month 6+ · Sale window

Most projects complete and sell here.

Principal returns to the fund. LP capital is either redeployed into the next loan or distributed.

Months 7–12 · Out-of-pocket

Late-phase payments and default protection.

If the project is still active, the borrower pays interest out-of-pocket on the first of every month. Thirty days late triggers penalties; sixty days late triggers default, and Clark St Homes completes the project.

What protects your principal.

The debt fund holds first lien on every property. Borrowers fund six months of interest into escrow before a hammer swings. Sixty days late triggers default and Clark St Homes completes the project under the lending agreement. Real recourse, locally enforced.

  1. 01

    First-position mortgage

    The fund holds a first lien on every property. We get paid before any equity holder sees a dollar.

  2. 02

    Six months of interest in escrow

    Borrowers fund six months of interest at closing. Months one through six are pre-paid before a single hammer swings.

  3. 03

    Pre-vetted borrower bench

    Seventy-five flippers built through Mike Meyer's commercial network. Minimum 660 credit and six months operating cash in reserve.

  4. 04

    Default to takeover in 60 days

    Thirty days late triggers penalty fees. Sixty days late triggers default and Clark St Homes completes the project under the lending agreement.

  5. 05

    Connecticut only

    Every loan is in our home state. Real legal recourse, real local knowledge, real foreclosure mechanics.

How the debt fund differs from a syndication.

Both products serve accredited LPs. They are not substitutes; they are different tools for different objectives. Debt fund LPs trade equity upside for predictability, shorter duration, and a position higher in the capital stack.

Predictable, contractual income

Debt fund LPs receive a fixed coupon paid monthly, regardless of whether the underlying property hits its business plan. In a syndication, distributions depend on the deal performing. The debt fund LP gets paid the same whether the sponsor crushes it or merely meets plan.

First position in the capital stack

Debt sits ahead of equity. If a deal underperforms, the fund gets paid before any GP or LP equity sees a dollar. Loans are secured by the property itself; in a worst case the fund forecloses and recovers principal from the asset.

Shorter, defined duration

Loans typically run 12 months. For an LP who wants their capital back on a known timeline, or who is parking money between bigger commitments, the debt fund is dramatically more liquid in practice than a 3 to 5 year syndication hold.

Diversification across many loans

A $100,000 check into a syndication buys exposure to one building, one market, one sponsor decision tree. The same check into the debt fund spreads across the entire loan book. One bad borrower does not blow up an LP's return; it gets absorbed by the portfolio.

Cleaner tax reporting; ideal for retirement capital

Debt fund returns are interest income, reported as 1099-INT or as ordinary income on a K-1. No depreciation recapture, no UBIT complications for self-directed IRA capital. That makes the fund a natural home for SDIRA money that is awkward to deploy into leveraged equity syndications.

No reliance on appreciation or exit timing

Equity syndication returns depend heavily on the sale or refinance event five years out, and on cap rates and market conditions at that moment. Debt fund returns are locked in at origination. The LP does not need the market to cooperate; the borrowers just need to perform, and if they do not, the collateral does.

The honest tradeoff: debt fund LPs trade upside for predictability. A syndication LP can hit a 1.8 to 2.2x equity multiple if the deal crushes; a debt fund LP gets their stated yield and that is it. This is the design, not a bug. It only fits the right investor: someone prioritizing capital preservation, current income, and shorter duration over swinging for the fences.

Next deal: 1–3 months · For 3–5 year wealth building

Multifamily syndication.

We acquire under-managed Class B and C multifamily properties in Connecticut, Rhode Island, and Massachusetts and reposition them through clean-and-safe rehab, modernization of common areas and units, and professional resident-first management. We co-invest on the same terms as our LPs and earn promote only after they have been made whole.

Minimum
$50,000
Hold
3 to 5 years
Distribution
Quarterly or monthly
Geography
CT · RI · MA
Asset
10–50 unit Class B/C multifamily
Wrapper
Reg D 506(c)

The syndication buy box.

We pass on more than ninety-five percent of the deals that cross our desk. The criteria below are the first filter, not the last; survivors face a five-stage underwriting funnel before any offer is made.

Unit count
10 to 50
Asset class
Class B or C multifamily
Construction
Pitched roof, individually metered
Connecticut counties
New London · Middlesex · Hartford · New Haven · Windham · Tolland
Adjacent markets
Rhode Island statewide · Massachusetts
Stabilization
Minimum 60% economic occupancy
Value-add levers
Rent upside, expense compression, unit and common-area rehab, major systems work (roof, HVAC) accepted

The two-hour rule

Six counties. One drive radius.

We don't operate properties we can't visit on short notice. Every CT target sits within a two-hour drive of Higganum, which keeps asset management honest and the contractor bench within arm's reach.

  • HartfordCo.

    north

  • TollandCo.

    north

  • WindhamCo.

    north

  • New HavenCo.

    south

  • MiddlesexCo.

    south

  • New LondonCo.

    south
  • Plus Rhode Island statewide and adjacent Massachusetts markets. Every property is within a two-hour drive of Higganum.

We don't analyze deals to find a yes. We kill deals that don't deserve one.

How we pick syndication deals

Each gate is calibrated to LP returns first. The default at every stage is no. A deal advances only when it earns the right to consume more of our time. The discipline is the edge.

100 deals enter the pipeline

  1. 01

    60-Second Screen

    Does it match what we buy?

    20

    advance

  2. 02

    10-Minute Filter

    Could the math possibly work?

    5

    advance

  3. 03

    60-Minute Underwrite

    Does the math actually work for our investors?

    2

    advance

  4. 04

    Stress & Tour

    Does the math survive bad scenarios?

    1

    advances

  5. 05

    Investment Committee

    Is this the best use of our investors' next dollar?

    ≈3

    of 100 earn an offer

Alignment mechanics

Five practices, written into every deal.

These are not aspirations. They are documented in the offering memorandum, reconciled at exit, and audited in the after-action report.

  1. 01

    We co-invest on the same terms.

    Same class, same return threshold, same outcome. We do not invest through a sponsor-favorable side car. The check is large enough that a bad result hurts us the way it hurts you.

  2. 02

    Every fee is published in the offering memorandum.

    Acquisition, asset-management, disposition. Each fee is documented in the OM and reconciled at exit. No miscellaneous line items. No hidden marketing budget.

  3. 03

    LPs get paid first.

    Our waterfall returns LP capital and pays a preferred return before we collect a dollar of promote (our share of profits above the hurdle). Returns, preferred returns and standard fund fees are always disclosed in the offering documents.

  4. 04

    Distributions begin only when the project is cash-flow positive.

    We never go into debt to make distributions. If the deal is not producing, neither is the distribution.

  5. 05

    After every deal, we publish an after-action report.

    The good, the bad, and the ugly, posted in the investor portal. The lessons that improve the next deal start with the honest accounting of the last one.

The investor list

Quarterly notes from the underwriting desk.

Deal memos, market analysis, and the deals we pass on. Delivered when they matter, not on a cadence schedule.

Read about the firm →

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