In addition to preservation of investor capital, the objective is to provide extraordinary investor returns by identifying opportunities to purchase primarily t-position notes from holders seeking to quickly cash out.
A fund designed to target significantly higher yields than other traditional mortgage funds by utilizing proprietary software developed over 20 years to identify, negotiate and purchase seller carry-back mortgages (notes) at steep discounts.
These discounts allow the fund to target yields in the double-digits and create immediate fund member equity value due to the difference between the amount owed on the note and the discounted price paid.
Once the domain of financial institutions and Wall Street private equity firms, Pacific Southwest Note Fund makes profiting from discounted notes accessible to the average investor, providing the type of attractive returns once available only to sophisticated real estate investors.
Notes are sold at discount for many reasons. Oftentimes it is due to the seller being in some form of financial distress and in need of liquidity. Other scenarios include death, divorce, or simply to desire to convert the note they hold into ready cash.
|Profit Split:||50/50 Fund/manager|
|Loan Asset Criteria:||Primarily 1st position notes, performing notes, and residential with some small commercial properties|