Quarterly Update - 2013 Q4

January 2014

Dear Rubicon Mortgage Fund Investor or Prospective Investor: 

Rubicon Mortgage Fund, LLC is pleased to announce that investors who reinvested each month during 2103 have received a total compounded return of 7.06%. This marks the 6th consecutive year that the fund has been profitable for its investors. We proudly have made money for our investors each of the 72 months we have been open. The Fund currently has 40 loans in its portfolio and holds two REO properties. Twelve new loans totaling approximately $6,400,000 were made this quarter. The Fund also received four pay offs from current borrowers. The Fund's portfolio of loans now totals approximately $19,000,000 and consists solely of first trust deeds.

Troubled Loan and REO Status Updates:

The Fund issued a Notice of Default on a property in Lancaster, California. The real estate securing the loan is a small stand-alone restaurant that is an owner user property. The fund did not originate this loan but rather it was purchased from a troubled Southern California fund roughly two years ago at a deep discount. Given the discounted price we believe this will ultimately prove to be a very profitable outcome for the fund.

Fund Growth for 2013:

The Fund added over 40 new investors this year and several existing investors added capital for a total increase of approximately $6,000,000. This consistent growth has allowed the Fund to continue to diversify its portfolio while remaining focused on quality loans. The bar graph below shows investor contributions throughout 2013.

q4-contributions.png

Outlook for 2014:

We will continue to "take what the marketplace gives us," while maintaining an eye on risk. We understand that capital preservation is the most important goal for our fund and its investors. Although, interest rates are historically low, we believe that similar returns in 2014 will be achieved as in 2013. Hopefully, private money rates will increase. Thus, creating higher returns for Rubicon, but if not our current returns are more than satisfactory. Remember, our loans are short term so when rates increase we will have the flexibility to adjust our pricing, so interest rate risk is minimized.

Please note that our best sources of referrals come from our current stable of Investors.  Please feel free to give our contact information to any interested colleagues, and as always, contact us directly with any questions.

Sincerely,

Rubicon Management