The Hornet Debt Fund is a 506(c) fund focused on asset-based lending in Central Texas. It provides short-term, high-interest loans to real estate developers, flippers, and investors who need fast, flexible financing. Loans are secured by real estate with a 70% loan-to-value (LTV) ratio, leaving a 30% equity buffer to minimize risk from market shifts or borrower issues.
70%
Loan-to-Value
Risk Mitigated by 30% equity buffer
12.5%
Average Interest Rate
Loan terms 18 months or less
9.6%
Annual Investor Returns
Compounded to 10% with reinvestment
Details
Name
Hornet Debt Fund, LLC (un-levered debt fund)
Manager
Hornet Management, LLC
Investor Qualification
Accredited Investors only (Am I accredited?)
Inception Date
July 2023
Cumulative Management Experience
-
Lending: 39 years
-
Real estate: 53 years
Type
A Private Real Estate Investment Fund
Primary Revenue
Asset-based “hard money” lending (primarily central Texas)
Evergreen Fund?
Yes
Minimum Investment
None
Lockup Period
None
Target IRR
9.6%
(compounded monthly = 10%)
Fees
2% Asset Management Fee
(taken out before returns are calculated)
Distribution Frequency
Monthly
Audited Financials?
Yes
IRA & 401k?
Yes
UBIT/UDFI?
No
Tax Form
K-1 (QBI Deduction Allowed)
Technology
Proprietary investor portal with real-time data and investment automation
Investor Relation Contact
Real-time Data
Below are real-time graphs based on data taken from our proprietary Hornet Investor Portal.
Hornet Capital is based upon a foundation of transparency. Upon execution of an NDA, potential investors may gain access to a more in-depth Investor Dashboard that breaks down the data below in more detail, as well as provide other insights and financials about many aspects of Hornet’s operations.