Opportunity for Investors
The opportunity for private lending in the real estate market has continued to grow over the past decade, driven by factors such as tightened regulations on traditional banks, increasing demand for flexible and timely financing solutions, and the attractive risk-return profile of loans for fix and flip housing investments at or below the median price of housing. This has created a unique market niche where private lenders can effectively serve the needs of borrowers while delivering an attractive risk adjusted yield to fund investors.
The private lending market has historically provided stable, attractive returns compared to other asset classes, with average annual returns in the range of 7-9%. The lack of market volatility and being an asset backed investment make private lending funds an attractive complement to a well-diversified investment portfolio.
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Investment Highlights
Protection of Principal
First lien position on all underlying real estate
Attractive, Consistent Cash Flow
Provides stable monthly income at a high yield
Favorable Tax Benefits
Fund’s REIT status offers significant tax benefits
Mitigation of Risk
Over $1 billion lent in the last 18 years
Fund Investment Strategy
Provide Short Term Loans for Investment Properties
- Provide short term loans in a niche real estate market, with a current average loan duration of 7- to 9-months and a current average rate of 11.5%.
Seek Prime Credit Borrowers
- Target prime borrowers with a FICO score above 660 and maintain an average score of over 700 in the fund.
Adhere to Underwriting Requirements
- By adhering to ZINC’s strict underwriting guidelines, loans in the fund meet the targeted risk profile.
Lend on Historically Stable Real Estate
- Focus on borrowers in non-judicial states in the West, South and Midwest where real estate has historically been more stable.
Service All Loans In-House
- Service all loans in house to ensure timely payments. Our average default rate is less than 3% and we foreclose on less than 0.125% historically.
Maintain Minimum Fees
- Maintain minimum fees and expenses to the fund in order to deliver an attractive monthly yield to investors.
Fund Offering Terms
MINIMUM SUBSCRIPTION
- $50,000
FUND TERM
- Evergreen
ASSET MANAGEMENT AND SERVICING FEE
- Combined 1.5% fee for the asset management and servicing of the fund
PREFERRED RETURN
- 6% annualized cumulative non-compounding payable monthly
EXCESS CASH DISTRIBUTION
- 80% / 20% (Class A / Manager)
LOCK-UP PERIOD
- 12 months subject to 60-day notice
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