QUARTERLY UPDATE - 2019 Q2
Dear Rubicon Investor:
Rubicon Mortgage Fund, LLC “RMF” is pleased to report that investors who reinvested each month through the first two quarters have received a total compounded annual return of 6.911%. Our philosophy of waiting for better opportunities and not being afraid of building a higher cash position paid off. This quarter was record setting in terms of total dollars lent out from RMF.
2nd Quarter in Review
The Fund made 20 new loans and advances totaling approximately $23 million dollars. This was our largest volume quarter ever and the outlook for third quarter seems even larger. The fund received 18 payoffs or pay downs from current bowers totaling $15 million. The portfolio remains strong and our loan performance continues to produce strong results.
Troubled Loan Update
Last quarter, Management informed investors of two loans that were heading towards foreclosure. Both properties were foreclosed on. The first property was sold on the courthouse stairs for a price slightly above the amount needed to make RMF whole (covering the entire outstanding indebtedness owed to RMF including default interest, penalties and fees). The second property is still in the legal process, but we anticipate a favorable result.
Investor Activity Update
Management would like to once again thank you for approving the changes to the Fund’s legal documents. Approximately 70% of the current investors voted, and of those investors, 100% voted in favor of the proposed changes. In May, we opened the Fund back up to new capital contributions and received $3.5 million dollars. We continue to welcome new investors and additional capital. Ongoing, Management expects large amounts of new lending opportunities based on the current sales team in place and the footprint in the marketplace Rubicon has created over the years. We will continue to invest into both people and marketing to find loan opportunities.
Continued Outlook for 2019
Interest rates remain very low and most feel the Fed in the very short run will cut rates before the end of 2019. Moreover, given the low rates globally it’s unlikely for rates to significantly increase any time soon so management would expect similar returns for investors in the medium run.
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.