South Dakota Private Lending

Real Estate Capital.
Rooted in South Dakota.

We acquire performing and non-performing mortgage notes, senior and junior liens, judgments, and bonds secured by South Dakota real estate — with 28 years of experience behind every transaction.

What We Buy Schedule a 15-Minute Call

Performing Notes

Mortgage notes with borrowers making current payments. We purchase at fair market prices with fast, straightforward closings — no bank delays.

Non-Performing Notes

Defaulted or distressed mortgage debt acquired at a discount. We have the experience and systems to work through even the most complex situations.

Senior Liens — 1st Position

First mortgage positions holding primary claim on the property. Our preferred position — maximum security for our capital.

Junior Liens — 2nd Position

Subordinate lien positions including HELOCs, seller carry-backs, and second mortgages. Higher yield potential with appropriate risk-adjusted pricing.

Judgments & Bonds

Court-issued judgment liens and surety bonds secured by real property. We evaluate and price these instruments with the same diligence as traditional mortgage debt.

South Dakota rural property and open prairie

The South Dakota Advantage

Why Invest in South Dakota Real Estate Debt

No state income tax. South Dakota investors keep more of what they earn — a structural advantage over most states.
Stable, landlord-friendly market. Consistent demand from Sioux Falls, Rapid City, Brookings, and growing secondary markets.
Tangible collateral you can see. Every position is secured by a physical property — not a security, not a derivative.
Self-directed IRA compatible. Real estate-secured notes are an ideal asset class for tax-advantaged retirement accounts.
Operator on the ground. We know this market — the lenders, the courthouses, the borrowers, and the properties — because we've been active here for nearly three decades.

Marc Hoffmann

Principal, Capital City Funding

About Us

28 Years of Real Estate Capital — From the Ground Up

Capital City Funding is a private real estate capital firm led by a principal with nearly three decades in real estate investment, capital deployment, and creative financing. Since 1998, we have acquired over 300 residential properties and 20 commercial assets across the upper Midwest and beyond.

As private lenders, we have funded more than $52 million in capital to rehabbers, flippers, contractors, and builders who needed fast, reliable access to cash — the kind of capital that gets deals done when traditional banks can't move quickly enough.

We specialize in note investing, deal structuring, land development, creative financing, capital raising, and trust deed management. Our South Dakota operations reflect a deep familiarity with local markets, local lenders, and local property values built over decades of active participation.

Markets cycle roughly every eight years. We have been through five of them — and that experience shapes how we evaluate risk, price assets, and protect our positions on every transaction.

If you hold a note you'd like to sell, or simply want to understand what your paper is worth, reach out. We keep it simple: a 15-minute call, a straight answer, and a fair number.

Market Cycles Navigated

Late 1990s 2005 – 2008 2012 – 2015 2021 – 2023 Current Cycle

Let's Talk

Tell Us About Your Note

Whether you have a performing note, a non-performing loan, a judgment lien, or something in between — we want to hear about it. Fill out the form and we'll be back to you within one business day.

Prefer a direct conversation? We're easy to reach.

Phone (320) 365-0111

Email marc@capitalcityfunding.com

Response Time Within one business day

Message Received

Thank you — we'll be in touch within one business day.

Real Estate Capital.Rooted in South Dakota.

What We Acquire