QUARTERLY UPDATE - 2015 Q2

July 2015

Dear Rubicon Mortgage Fund Investor or Prospective Investor:

Rubicon Mortgage Fund, LLC is pleased to announce that investors who reinvested each month during the 2nd Quarter in 2015 received an annualized compounded return of 7.084%. We proudly have made consistent returns for our investors each of the 91 months we have been open.

2nd Quarter in Review:

Fifteen new loans totaling approximately $10,000,000 were funded this quarter by the RMF. The Fund also received eleven pay offs from current borrowers. Approximately twenty investors either added to their existing accounts or opened a new account totaling just over $2,500,000. We had no foreclosures this quarter. Our portfolio is now comprised of 65 loans; all of our loans are secured in 1st position, and our portfolio is consistently meeting our expectations. This quarter our borrowers in terms of dollars paid us on time 98% of the time. This is fantastic and more than meets our acceptance level. Our cash position fluctuates roughly between 3-6% and we have yet to use our line of credit even for warehousing purposes. So our fund remains unleveraged.

3rd Quarter Outlook:

Typically 3rd and 4th quarter are busy times for RMF. We have funded about 40% more dollars this year than we did a year ago at this time. If this pace continues we will have an extremely active back half of the year. Roughly 25% of our business remains repeat borrowers. Management has invested in two full time loan brokers to “find opportunities” for the fund. Both of these young men were part of our internship program for a year prior to passing their real estate exams. We want to see more opportunities so we can continue selecting loans that meet our criteria. We saw little to no price movement in terms of private money rates or fees. We have been creative in our structures to try and produce slightly higher yields without sacrificing risk. We are projecting similar returns the rest of the year.

Transparency:

If you are not receiving frequent email updates or our "Just Funded” blasts please inform us. We like to have all our investors see what we are doing with their money. Also, we continually update our website in the funded loans tab so in case you missed the email blast it’s on the website. When we fund loans we add them to the website and take down the oldest loans. So this area of the website is a pretty good representation of what the portfolio is currently. This transparency and communication with our investors is critical.

Annual IRR Graph:

This table represents past returns and does not guaranty future returns

Sincerely,

 

Rubicon Management