QUARTERLY UPDATE - 2017 Q2

July 2017

Dear Rubicon Investor:

Rubicon Mortgage Fund, LLC is pleased to announce that investors who reinvested this quarter received a total compounded return of 6.631%. Management is proud to report to their investors that the Fund has made money each month since the fund opened in 2008.

2nd Quarter in Review

The Fund made thirteen new loans totaling approximately $15,500,000 this quarter; most funded in June. We received payoffs from fifteen current loans with principal amounts totaling just under $10,400,000. The Fund also received approximately $3,600,000 in investment contributions.

As you may have noticed, this past quarter’s rate of return was slightly lower than usual. The primary reason for the lower return is that the Fund has maintained a large cash position for the past several months: we received numerous large loan payoffs and sizeable new investment contributions – both of which are good things! Even though we’ve had cash, we have maintained our conservative underwriting – waiting to invest in the right loans for the Fund. Because of this patience, not all of our cash has been invested in loans and the rate of return has dipped. Our primary goal is always to maintain a quality loan portfolio. We expect the Fund’s returns to increase as our cash position lessens over the next few months.

Foreclosure

As we mentioned in our last quarterly letter, 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 that 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

If loan volume continues to pick up we may be able to raise pricing on new loans but for now expect the same or slightly higher returns for the balance of 2017.

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