QUARTERLY UPDATE - 2019 Q1
Dear Rubicon Investor:
Rubicon Mortgage Fund, LLC is pleased to announce that investors who reinvested each month throughout the first quarter have received a total compounded annual return of 6.8%. We had a much higher than usual cash position during the first quarter which lowered the rate of return, however we continue to remain true to our mission statement of only making loans that we believe in – and we will always work under the mindset of capital preservation first.
1st Quarter in Review
The Fund made only six new loans and advances totaling approximately $15 million dollars. Seventy percent on the first quarter funding occurred in March. As in years past, January and February were extremely slow. Fortunately, April is off to a fantastic start! The Fund also received 14 payoffs or pay downs from current borrowers totaling $9.4 million. Our current portfolio remains strong.
Troubled Loan Update
Rubicon filed a notice of default on two loans last quarter. Both loans are secured by first deeds of trust on real properties that have ample equity protecting our investment. We expect good results from both of these loans.
Continued Outlook for 2019
Interest Rates have made a complete reversal since last year and surprisingly have been moving downwards. The prior market consensus was predicting a slight increase in rates during 2019, but economic conditions have guided the Fed to not increase rates. For the first time in years, rate cuts are being seriously discussed. Reopening of Additional Contributions: Our cash position has drastically reduced. April is off to a strong start, so management has decided to reopen the fund to additional contributions effective May 1st.
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.