QUARTERLY UPDATE - 2017 Q1

April 2017

Dear Rubicon Investor:

Rubicon Mortgage Fund, LLC is pleased to announce that investors who reinvested this quarter received a total compounded return of 6.874%. Management is proud to report to their investors that the Fund has made money each month since the fund opened in 2008.

1st Quarter in Review

The Fund made seven new loans totaling approximately $5,800,000 this quarter and received payoffs from thirteen current loans with principal amounts totaling just under $6,000,000. The Fund also received approximately $5,000,000 in investment contributions. This created a heavier cash position than desired but we continued to stick to our disciplined approach and only made loans we were comfortable in making.

Foreclosure

We did not have any new foreclosures but we did file a Notice of Default on a small duplex property in Concord. We are confident in our collateral and expect to be paid off prior to the sale. In the remote chance we foreclose on the property we believe our position in the property would be adequate to recover all monies owed to us.

Outlook for 2017

Although our initial interest rate projection throughout the year remains the same, we underestimated the amount of cash seeking loans like the ones we make. Therefore, our pricing on loans to remain competitive has created a small drag on yields given the current rates. But we expect that the market will correct itself in time. So, for now, expect similar yields the first half the year with slightly higher yields moving forward. (But this is, of course, speculation.)

Rubicon Team

Management is pleased to announce that it has added several members to our sales team to help Management identify quality loans for the Fund.

Transparency

Every investor in the Fund receives 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 audits, in addition to the quarterly updates, are posted online on our website. If you did not receive a document, 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. 

As always, contact us directly with any questions or comments.

Sincerely,
Rubicon Mortgage Fund, LLC