QUARTERLY UPDATE - 2018 Q2
Dear Rubicon Investor:
Rubicon Mortgage Fund, LLC is pleased to announce that investors who reinvested each month throughout this calendar year have received a total compounded annual return of 7.247%. This marks the 42nd consecutive quarter that the Fund has been profitable for its investors.
2nd Quarter in Review
The Fund had its busiest 2nd quarter ever from a loan origination standpoint – we made 16 new loans and two additional advances totaling approximately $19 million dollars. We feel that the development of Rubicon’s sales team combined with large marketing efforts played a major role in this landmark quarter. The Fund also received twelve payoffs from current borrowers totaling just over $9 million dollars. And the Fund received additional capital contributions of more than $3 million dollars.
Troubled Loan Update
The Oakland property we discussed earlier this year paid off in full, as we predicted, and the Fund did quite well capturing additional default interest and late fees.
Sale of REO (Real Estate Owned) Property
In addition, you may have noticed a larger return than normal for May on your last monthly statement. This was due to the sale and recognition of income from a property the Fund foreclosed upon last year (REO) located in New Mexico. This is unusual and not part of our business model. We do not wish to foreclose on properties, in fact, quite the opposite. However, if it is the best course of action to protect our investment, we will foreclose and then sell the asset – here we did so at a significant gain.
Continued Outlook for 2018
We still expect rates to increase this year in our marketplace. As reported last quarter, private rates lagged back from conventional rates and in fact conventional rates saw a slight reduction. Sometimes it appears the private sector is more in touch than the institutions. We expect to continue performing at the current level or slightly higher, but 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.
Accepting Money Going Forward
We are keeping a close eye on the overall capital in the Fund. If we feel as though it’s becoming too difficult to place our funds in quality loans, we will restrict new investors yet allow our existing investors to continue increasing their contributions. For now, we are accepting new accounts, but we are mindful of the total cash under management.
As always, contact us directly with any questions or comments.
Rubicon Realty Advisors, Inc., Manager
Transparency: Please note that 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.