Trusted Income Fund — A 506(c) SEC-Registered Fund

Mezzanine Financing & Preferred Equity

Flexible subordinate capital solutions within a 506(c) SEC-registered real estate debt fund — designed to educate accredited investors on how this position in the capital stack balances risk and return.

Every position we underwrite, including mezzanine and preferred equity structures, is held to the same lending discipline: a maximum of 75% loan-to-value, which has historically supported 20% annualized returns for our investors.

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Understanding the Capital Stack

What Are Mezzanine Financing & Preferred Equity?

Every real estate transaction is financed through layers of capital known as the "capital stack." Senior secured debt sits at the top of repayment priority, common equity absorbs the first losses, and mezzanine financing and preferred equity occupy the space in between — subordinate to the senior loan, but positioned ahead of the sponsor's own equity. This middle position allows investors to participate in a property's return potential while maintaining a contractual claim that is senior to ownership equity.

Trusted Income Fund is a 506(c) SEC-registered real estate debt fund, and every mezzanine or preferred equity position we structure is underwritten with the same discipline we apply across our entire loan book: we lend a maximum of 75% of the property value across the combined capital structure, which helps preserve a meaningful equity cushion beneath every dollar we deploy. This conservative loan-to-value threshold has supported historically strong outcomes, with the fund generating 20% annualized returns for our investors over time.

These positions are originated through our affiliated mortgage lending business, which sources and underwrites high-quality borrowers directly. When a loan reaches maturity, that same affiliated lender works with the borrower to refinance into a longer-term facility — helping the fund recover and redeploy capital efficiently while maintaining underwriting continuity from origination through repayment.

Max 75% Loan-to-Value

Historically 20% Annualized Returns

Explore all capital structure options

Illustrative Capital Stack

Common Equity

First-loss position held by the property sponsor

Mezzanine & Preferred Equity

This Strategy

Subordinate capital placed above the sponsor's equity, below senior debt

Senior Secured / First Lien Debt

Underwritten to a maximum of 75% of property value

Diagram is illustrative of typical real estate capital structures and does not represent a specific offering. Trusted Income Fund is a 506(c) SEC-registered fund available to accredited investors.

Our Mezzanine & Preferred Equity Structures

As a 506(c) SEC-registered real estate debt fund, Trusted Income Fund deploys capital across three subordinate structures, each underwritten within our disciplined maximum 75% loan-to-value threshold and supported by our affiliated mortgage lending business, which originates high-quality loans and helps borrowers refinance into longer-term financing to return capital to the fund. This disciplined approach has historically generated 20% annualized returns for our investors.

Mezzanine Debt

Subordinate to senior secured debt but senior to sponsor equity, mezzanine positions carry a fixed or preferred coupon and are typically secured by a pledge of ownership interests in the borrowing entity.

Fixed or preferred contractual return
Positioned above common equity in the capital stack
Secured by pledge of ownership interests

Preferred Equity

Preferred equity sits alongside sponsor ownership but receives priority distribution rights ahead of common equity holders, often filling the gap between senior debt proceeds and a sponsor's available capital.

Priority distribution ahead of common equity
No direct lien on the underlying property
Used to bridge the senior debt-to-equity gap

Calculator and documents used to structure hybrid capital investments

Hybrid Mezzanine-Preferred Structures

Blending a contractual coupon with participation features, hybrid structures allow the fund to tailor terms to a sponsor's specific capital needs while aligning investor and sponsor interests over the life of the project.

Contractual coupon plus participation upside
Terms tailored to each sponsor's capital stack
Structured to align sponsor and investor interests

Have questions about which structure fits your goals? See our FAQ →

Why Invest in Real Estate Debt

As a 506(c) SEC-registered fund, Trusted Income Fund offers accredited investors a disciplined way to participate in real estate lending, including mezzanine financing and preferred equity positions. Loans originated through our affiliated mortgage lending business are underwritten conservatively and, as borrowers refinance into longer-term financing, fund capital is recovered and redeployed — supporting the core benefits below.

Consistent, reliable income

Trusted Income Fund has historically generated 20% annualized returns for investors, distributed as dependable income from a diversified portfolio of real estate debt.

Secured by real estate

Every position in the fund's capital stack, including mezzanine and preferred equity, sits behind loans underwritten to a maximum of 75% of the property's value.

Insured by property insurance

The real estate securing each loan is required to carry property insurance, adding a further layer of protection for fund capital.

Our Underwriting & Capital Recovery Process

As a 506(c) SEC-registered real estate debt fund, Trusted Income Fund follows a disciplined, repeatable process for every mezzanine and preferred equity position we place — from in-house origination through underwriting, monitoring, and eventual refinance.

Property appraisal and underwriting review of a residential home

Origination Through Our Affiliated Lender

Loan opportunities are sourced and originated by our affiliated mortgage lending business, which screens borrowers and properties before any capital is committed.

Underwriting & Loan-to-Value Discipline

Every position is underwritten against strict collateral standards. We lend a maximum of 75% of the property value, preserving an equity cushion beneath every dollar deployed.

Active Portfolio Monitoring

Once capital is placed, our team tracks project milestones, borrower performance, and property valuations for the life of each loan.

Refinance & Capital Recovery

As loans mature, our affiliated mortgage lending business works directly with borrowers to refinance into longer-term financing, recycling capital back into the fund and supporting our historically 20% annualized returns for investors.

Mezzanine & Preferred Equity FAQs

Answers to common questions accredited investors ask about subordinate capital structures, risk, and eligibility under our 506(c) SEC-registered offering.

Ready to Learn More About Mezzanine & Preferred Equity Investing?

Connect with our team to explore how this capital structure fits your portfolio.

Trusted Income Fund is a 506(c) SEC-registered real estate debt fund that has historically generated 20% annualized returns for investors, underwriting every position in the capital stack to a maximum of 75% loan-to-value. Our affiliated mortgage lending business originates each loan and works directly with borrowers to refinance into longer-term financing, helping protect and recover invested capital.