Is It Too Good to Be True? How We Earn 10–12% Returns with Real Estate Debt

By Dan The Hard Money Man

We get this question a lot: "Wait, how are you really paying 10–12% annually? What’s the catch?"

Here’s the not-so-secret sauce: We make smart loans. At Acadia Capital, we lend to experienced real estate investors who need fast funding for flips, rehabs, or bridge loans. They’re often buying at a discount, adding value, and reselling—so they can afford to pay higher interest for quick access to capital. We:

• Underwrite every deal in-house
• Fund first-position loans only
• Secure each loan with real estate

The borrower pays 13% interest. You, the investor, earn 10–11%. We keep the spread and manage the loan. It’s not magic—it’s just math. And it’s worked for over 850 loans with a <1% foreclosure rate. So no, it’s not too good to be true. It’s just a smarter way to earn fixed returns in a market that loves to overcomplicate things.