Quarterly Update - 2014 Q1
Dear Rubicon Mortgage Fund Investor or Prospective Investor:
Rubicon Mortgage Fund, LLC is pleased to announce that investors who reinvested each month during 2014 have received a total compounded return of 6.86%. This marks the 7th consecutive year that the fund has been profitable for its investors. We proudly have made money for our investors each of the 75 months we have been open. The Fund currently has 43 loans in its portfolio and holds two REO properties. Five new loans totaling approximately $2,400,000 were made this quarter. The Fund also received two pay offs from current borrowers. The Fund’s portfolio of loans now totals approximately $21,000,000 and consists solely of first trust deeds.
Troubled Loan Update:
The Fund issued a Notice of Default on a property in Lancaster, California. The real estate securing the loan is a small stand-alone, owner occupied restaurant. The fund did not originate this loan, but rather it was purchased from a troubled Southern California fund at a deep discount approximately two years ago. Given the discounted price we believe this will ultimately prove to be a very profitable outcome for the fund. There is no new information to report on this loan, for the loan is still in notice of default.
The Fund added twelve new investors this quarter and nineteen existing investors added capital for a total increase of approximately $3,350,000. This consistent growth has allowed the Fund to continue to diversify its portfolio, while remaining focused on quality loans.
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 the Fund and its investors. The market place overall is “tighter”, and there is cash looking to enter the private lending arena. We have noticed some lenders reaching or pushing their thresholds a bit in order to get deals done. We will not operate this way, and will continue to maintain our standards by financing only loans that make sense. The new influx of capital has kept rates and fees down which is reflected in our yields. However, our continuous marketing efforts and Rubicon’s footprint continues to grow, affording us more lending opportunities.
We will continue to send out electronic ‘blasts’ via Constant Contact with updates on our loan closings, so that you may see where you money is being invested. 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.