QUARTERLY UPDATE - 2014 Q2

July 2014

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 6.94%. We proudly have made money for our investors each of the 78 months since the Fund’s inception. The Fund is diversified with 51 loans in its portfolio. It also holds three REO properties which represent less than 3% of the Fund’s portfolio. This quarter we made Fifteen new loans totaling approximately $7,200,000 and received five Loan pay offs from borrowers. The Fund’s portfolio of loans now totals approximately $26,000,000 and consists solely of first trust deeds. Management is extremely pleased with the current portfolio and is forecasting a solid future.

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 purchased it 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. In June 2014 we took the property back from the former owner but are in negotiations with the former owner. Attorneys believe a deal will be struck; ultimately strengthening our overall position.

Fund Growth for 2014:

This quarter the Fund’s investor capital grew by $2.35 million and the Fund added seven new investors. This consistent growth has allowed the Fund to continue to diversify its portfolio, while remaining focused on quality loans.

Contribution History

mortgage-fund-investor-q2-2014

 

Current Market Place:

The Fund had a big quarter for loan originations. Our marketing efforts have been greatly increased and our footprint continues to grow. The deals have been smaller but the quality has been strong. We continue to spread our risk and now have over 50 loans in our portfolio. Risk is still and will always be our main focus. We will remain true to our investors and will be focused on the higher end loans of the private money arena. Although we may not capture the higher rates as some of our competitors by taking on riskier deals such as highly leveraged junior liens or by operating a levered fund we believe that slow and steady will ultimately provide our investors with good solid returns while keeping risk at a manageable level.

Reminder:

In an effort to maintain and further improve transparency with our investors and the public, we have made significant changes to improve our website www.RubiconFund.net. The site includes all of our annual audits and many of our quarterly updates. We also actively update the recent transactions tab so that you can follow what our portfolio looks like. The site has many user friendly features that will allow both current investors and potential investors to verify our success, as well as locating helpful documents. 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, family members or partners. As always, contact us directly with any questions.

 

Sincerely,

 

Rubicon Management