Fund Type: Private Mortgage Lending
Fund inception: 2010 (open for new investments)
Traditionally, people have looked to residential real estate as a source of easy credit and did not tap into the equity available in commercial or investment properties. The market has shifted, and now that “new” source of equity is being utilized. In response, Stonecrest is taking advantage of lending opportunities in equity-rich, realistically priced residential, commercial, and investment properties for qualified borrowers.
Stonecrest has taken the market experience and strategic approach that made our Private Capital Fund a success and applied them to the Secured Income Fund II. Our goal is to grow the Fund portfolio while delivering stable yields and minimizing risk. Secured Income Fund II offers investors healthy returns on loans with attractive loan-to-value ratios, which translates into lower risk.
Fund managers solicit, underwrite, process, and fund private money loans for commercial and residential borrowers in California. The Fund has produced a stable yield since inception – outperforming income markets and competitors.
Secured Income Fund II, LLC is modeled on our successful Private Capital Fund (est. 2004). Our proven underwriting guidelines are the same for both funds:
- Ensure that there is sufficient equity in the underlying property
- Ensure that our borrowers are financially able to make their loan payments
- Identify our borrowers’ exit strategies in advance
- Perform thorough internal appraisal and review of property
- Secure stable yield for fund investors
- Cross-collateralize when possible for additional security
- Place emphasis on income producing properties that generate positive cash flow
- Avoid overexposure to a single borrower
- Stay sensitive to average loan amounts relative to the overall value of fund
- Stable yields.
- Intra-fund diversification to minimize overall portfolio risk.
- Safe positions in equity-strong properties.
- Choice between income or compounding distribution.
- Qualification for 401K, IRA, and pension plans.
- Professional full-service account management.
|Annualized Rate of Return|
|Gross Loan portfolio dollars||$166,724,487|
|Loans in the portfolio||177|
|Average loan amount||$941,946|