Nectar

Nectar is an Atlanta-based real estate finance company that advances capital to experienced property owners and operators against the cash flow of their stabilized portfolios. Advances range from $200,000 to $3 million per entity, with terms of one to five years, monthly payments, simple amortization and funding in as little as seven days after underwriting diligence is complete. Nectar states that its financing does not involve a hard credit pull, does not affect personal credit or debt-to-income ratios, does not place liens on properties, and leaves the operator's equity intact; it lends up to a portfolio leverage limit of 80% including its own advance, and applies a one-year lockout period regardless of term length. Property types funded include multifamily, commercial real estate, self-storage, hospitality and student housing, with borrowers required to be US-based entities.

On the capital side, Nectar offers accredited investors access to mezzanine debt and preferred equity positions backed by low-leverage, cash-flowing real estate. Investors can allocate to Nectar Fund 2, an open-ended vehicle that automatically invests in a diversified pool of Nectar Notes with a stated target yield of 12-14% and a three-year term, or select individual Nectar Notes to target higher yields. Published fund terms include a $100,000 minimum, quarterly distributions of 3-4.5%, no management fees, a reinvestment option, and eligibility for 401(k) and IRA investment.

The company also operates an affiliate/broker channel, in which partners refer borrowers through personalized landing pages, track deals in an affiliate dashboard, optionally charge their own origination fee at closing, and earn override commissions on referrals they recruit one level deep.

Founding story

The founders started Nectar after experiencing firsthand the difficulty and expense of accessing equity in their own multifamily and short-term rental properties, and built a financing product that lets real estate entrepreneurs fund growth from their own cash flow.

Business model

Nectar originates cash-flow-based advances and equity-style financings to real estate operators and funds them by selling participation to accredited investors through a pooled fund and individual notes. Borrowers pay an annualized financing fee (rates stated as variable and subject to change) with monthly amortizing payments; the Nectar Equity program involves a membership interest that is bought out over time. A buyback schedule is provided with each quote in lieu of traditional hard prepayment penalties.

Borrower-side annualized financing fees on advances, with origination fees payable at closing where affiliates are involved; investor-facing products are marketed with no management fees.

Traction

The company publishes client case studies across storage, multifamily and hospitality operators, client testimonials including one referencing over $1 million in working capital secured, and a running tally of capital requested on its homepage. Nectar Fund 2 reported an average 56% CLTV and 2.28x Nectar coverage ratio as of December 31, 2024.

Latest developments

Nectar markets two borrower programs, Nectar Advance and Nectar Equity, and an open-ended investor vehicle, Nectar Fund 2, alongside individually selectable Nectar Notes.