QUARTERLY UPDATE - 2018 Q4

January 2019

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 7.306%. We exceeded our expectations and are proud that we have been profitable every month for eleven years.

4th Quarter in Review

The Fund made 14 new loans and advances totaling approximately $11 million dollars. The Fund also received 18 payoffs from current borrowers totaling just under $17 million dollars. During the 4th quarter, the Fund received additional capital contributions of more than $5.4 million dollars. We believe our current portfolio is strong with most of our borrowers making their payments timely. In fact, as of today, 85 of our 89 loans are current, equating to 98.19% of the outstanding debt.

Troubled Loan Update

Rubicon has filed a notice of default on two loans. Both loans are secured by first deeds of trust on real properties that have ample equity protecting our investment.

Continued Outlook for 2019

Interest Rates have been moving up over the course of 2018. During the 4th quarter, however, interest rate markets fluctuated to a point that rates even dropped briefly in the 4th quarter. But ultimately the Fed still raised rates in December. Market consensus would indicate that rates are expected to go up slightly in 2019 but economic conditions will ultimately guide the Fed. The increased rates over the past year have allowed us to steadily 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, we expect the Fund’s return to increase slightly in 2019.

Sincerely,
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 the audits, in addition to the quarterly updates, are posted online on our website www.Rubiconfund.net. 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.