QUARTERLY UPDATE - 2017 Q4
Dear Rubicon Investor:
Rubicon Mortgage Fund, LLC is pleased to announce that investors who reinvested each month during 2017 received a total compounded return of 6.803%. This marks the 10th consecutive year that the Fund has been profitable for its investors.
4th Quarter in Review
The Fund made 14 new loans totaling approximately 12 million dollars this quarter. The Fund also received 15 payoffs from current borrowers totaling just under 11 million dollars. And Investors contributed capital of approximately 2 million dollars into either existing or new accounts.
Year in Review
We are extremely pleased with 2017 results. Our compounded return of 6.803%, given the interest rate environment was acceptable especially considering the low risk we took. Our existing portfolio is currently strong and is comprised of 77 loans. All our loans are secured with first deeds of trust. The Fund made 45 new loans in 2017 of approximately $43,000,000. We received 55 pay offs, resulting in repayment of approximately $34,000,000, and received roughly $13,000,000 in additional contributions.
Troubled Loan Update
The Fund filed two notices of default towards the end of this quarter. Both were filed because of a maturity defaults. The first loan is secured by two properties (one property is in San Francisco and the other is in San Mateo). We have plenty of equity in the properties to cover our loan and we expect to be refinanced
before the properties go to auction. The other notice of default was filed on a loan secured with a property in Oakland. We feel there is sufficient equity to cover us here, as well, and expect to be refinanced prior to a foreclosure sale.
Outlook for 2018
Last year we felt interest rates would increase, but in fact, rates were lower most of the year. By the end of the year they rallied back to basically unchanged. We expect rates to increase this year. If we get a lift in rates expect your returns to follow, but if not, expect similar returns. Either way our underlying philosophy of taking what the market offers isn’t going to change. We understand our investors and their expectations for this investment. Capital preservation is our focus with the expectation of modest returns.
2017 K-1 Forms
Our 2017 Form K-1s are currently scheduled to be mailed to investors on 3/15/18.
As always, contact us directly with any questions or comments.
Rubicon Mortgage Fund, LLC
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.