Private Credit: Real Estate-Backed Investing with Navigator
An income-focused alternative to Wall Street secured by first-position real estate loans.
At Navigator, we make private credit accessible to accredited investors through our professionally managed Income Fund. By pooling capital and lending conservatively, we help investors pursue steady, income-focused returns backed by real estate collateral.
For Accredited Investors Only
What is Private Credit?
Private credit (also called private lending, hard money lending, or alternative credit) is when investors provide capital to real estate borrowers through secured loans. Unlike traditional bonds or CDs, private credit typically offers higher yields, shorter durations, and is backed by real estate collateral.
For accredited investors, this means targeting income backed by real assets through income-focused lending strategies. See how private credit income strategies can help you retire confidently in our eBook.
Why Private Credit with Navigator
What is Private Credit?
- Diversified Exposure: Investor capital is pooled inside the Navigator Income Fund, spreading risk across multiple deals.
- First-Position Security: All loans secured by real estate collateral.
- Professional Underwriting: Rigorous deal sourcing and underwriting by Michael & Jeremy, not ad hoc lending.
- Aligned Interests: Fund managers co-invest alongside investors.
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Proof Point: Navigator recently funded a short-term bridge loan (no construction) for a multifamily property acquisition at 80% loan-to-value.
The loan was secured by a first-position mortgage, backed by a property with strong cash flow. The borrower is refinancing within 12 months,
repaying principal in full, and delivering targeted quarterly income to investors. This illustrates how conservative LTV, real estate collateral,
and disciplined underwriting help mitigate risk.
How Returns Work
The Navigator Income Fund targets 8–11% annual investor returns, distributed quarterly. These returns are income-oriented, not appreciation-focused, making private credit a strong complement to equity real estate or traditional investments. By investing in a diversified pool of first-position loans, accredited investors can pursue consistent income while preserving capital.
Navigator's Private Credit vs Traditional Lending
| Approach | Typical Characteristics | Risks | Navigator Advantage |
|---|---|---|---|
| Traditional Private Lending | One-to-one, often informal loans between individuals. Terms vary widely. | High default risk, limited oversight, inconsistent documentation. | Navigator pools capital, applies professional underwriting and risk control processes. |
| Navigator’s Private Credit (Hard Money) | Institutional style, diversified across multiple 1st position loans. Target 8–11% investor returns with scheduled quarterly distributions. | Risk mitigated through conservative underwriting, risk reduction processes, real estate collateral, short-term loans, and manager co-investment. | Professional management, alignment with investors, and income focused. |
Frequently Asked Questions
All loans are secured by first-position real estate collateral. We diversify across multiple borrowers, use conservative loan-to-value ratios, follow strict underwriting, employ 3rd party professional services, risk reduction processes, and co-invest our own capital alongside investors.
The Navigator Income Fund is designed for accredited investors seeking income. It offers scheduled quarterly distributions with return of capital as loans are repaid (typically 12–18 months).
Unlike one-off private loans, Navigator pools investor capital into a professionally managed fund. This spreads risk across multiple loans. Disciplined underwriting standards and professional due diligence reduce risk that many individual lenders cannot replicate.
The Fund targets 8–11% annual returns, distributed quarterly. These distributions come from borrower interest payments and are intended to provide targeted income for investors.
Investors receive a K-1 each year for tax reporting, reflecting their share of income, expenses, and distributions from the Fund.