QUARTERLY UPDATE - 2018 Q3
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 7.25%. This marks the 43rd consecutive quarter the Fund has been profitable for its investors.
3rd Quarter in Review
The Fund made 19 new loans and advances totaling approximately $13 million dollars. The Fund also received 11 payoffs from current borrowers totaling just over $10 million dollars. During the 3rd Quarter, the Fund received additional capital contributions of more than $3.5 million dollars. We believe our current portfolio is strong with the majority of our borrowers making their payments timely. In fact, as of today, 93 of our 95 loans are current, equating to 99.36% of the outstanding debt.
Troubled Loan Update
Continued Outlook for 2018
Interest Rates have been moving up over the course of 2018. This year, the Federal Reserve has already approved three separate 25 basis point rate hikes, or an increase of three-quarters of one percent. These gradual rate hikes have allowed us to continually raise Rubicon’s rates and fees to our borrowers. Theoretically, as loans pay off, we then lend that same money back out at higher prices. Therefore, your returns will slightly increase. It takes time to complete all the recycling, so the full impact is still to come. There are more projected rate hikes in 2019, so all things being equal, again you can expect slightly higher 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.