What sources does Rubicon Mortgage Fund use for its loans?
Answer: Via mortgage brokers, direct borrowers, banks, attorneys, developers
What types of real estate do you finance?
Answer: Commercial properties, such as, retail, office, industrial, apartments, mixed-use. multi-family and mini-storage.
Where are most of your loans located?
Answer: Our loans are primarily located in the San Francisco Bay Area but we will consider properties throughout California.
What can one loan in The Fund represent?
Answer: Commonly, no one loan will represent more than 10% of The Fund, and currently The Fund has over 30 loans.
How many loans have you foreclosed upon?
Answer: Since Rubicon’s inception in January 2008 just under 5% of the loans made were foreclosed upon.
Are there any restrictions on becoming an investor in The Fund?
Answer: Yes. All investors must be classified as accredited before being accepted into The Fund.
Please explain your underwriting process? Who performs the underwriting and due diligence?
Answer: The principals perform the underwriting and the due diligence on all of the loans. We use all methods of gathering information from the Internet to commercial brokers and appraisals. We research all aspects of our collateral, as well as the immediate submarket where the property is located. We physically inspect every property we lend on, no matter where it is located.
Generally, how much capital is currently not funded or not earning interest?
Answer: The cash balance of The Fund ranges between 2% and 10% depending on whether we just funded a loan or received new investment funds.
Is The Fund leveraged?
Answer: For the most part no; we do have a line of credit from California Bank of Commerce that is used as a warehouse line of credit or to fulfill investor redemptions.
As an investor in The Fund can I receive monthly distribution?
Answer: Yes, investors can choose to either get monthly distribution or to reinvest each month.