QUARTERLY UPDATE - 2015 Q4
Dear Rubicon Mortgage Fund Investor or Prospective Investor:
Rubicon Mortgage Fund, LLC is pleased to announce that investors who reinvested each month during 2015 received a total compounded return of 7.351%. This marks the 8th consecutive year that the Fund has been profitable for its investors. We proudly have made money for our investors each of the 96 months we have been open.
4th Quarter in Review
Thirteen new loans totaling approximately $9,300,000 were made this quarter. The Fund also received nine pay offs from current borrowers. Approximately $4,000,000 was invested into either existing accounts or to new accounts that were opened this quarter. The Fund is in contract to sell one of its only two REO (real estate owned) properties. This is a 2.9 acre parcel located in Atwater, CA. The other REO is located in Moss Landing, CA and we are currently negotiating with two buyers. Management will provide a more detailed summary once those transactions have closed.
Year in Review
The Fund had a tremendous year! Returns remained consistent to its investors; the compounded return was 7.351%. The Fund added over 12 million in new investor monies. This growth allowed RMF to spread its risk over more loans. Management originated approximately 50 loans in 2015 to keep our portfolio current and fresh. Roughly 34 loans were paid off during the year, enabling management to recycle the money and minimize our risk.
All Rubicon Mortgage Fund investors receive monthly account statements either electronically or via hard copy. All investors also receive quarterly updates from the manager (like this one), and a copy of the Fund’s annual audit. All of the Fund’s annual audits since its inception in 2008, in addition to the quarterly updates, are posted online on our website www.Rubiconfund.net. If you did not receive any of those documents, or wish to go back and review them, please contact us or visit the website. If you have registered for monthly distributions you should be receiving either an ACH deposited directly into your bank account or a check sent to your mailing address. Finally, all investors should be receiving an email electronic “blast” or message every time a loan is funded. We want you to see where your money is being invested! If you miss the “blast” you can go on our website and see our blog posted online. Once on the website you will notice a tab “Funded Loans” and here you will find a picture of all of our latest loan closings. It is extremely important to us that you are informed, and that you see exactly where your money is being invested. You can always contact us with any questions or comments.
Outlook for 2016
We are finally seeing a rise in interest rates. Although we don't expect major increases in 2016, we may see a small rise in rates. Ultimately, higher rates will result in higher returns, and the fact that our loan terms are so short we will push away from dragging low yields. However, higher rates can result in pressure on real estate prices, so now more than ever we must remain conservative on loan values. Our number one goal remains capital preservation: although we expect higher interest rates and thus higher investor returns, we will not take on more risk in order to obtain higher returns... that will just be a function of market conditions.
Private Placement Memorandum
We received far more than the minimum required Member approvals to allow us to implement our 2nd Amdended and Restated Private Placement Memorandum as of January 1, 2016. Thank you for your quick responses. As a reminder, this document can be found on our website under the "Forms" tab.
2015 K-1 Forms
Our 2015 K-1 Forms are currently scheduled to be mailed on March 15, 2016.
Graph of Rubicon's returns since 2008
This represents an actual account that has compounding returns.
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 or partners and as always, contact us directly with any questions.
Rubicon Mortgage Fund, LLC