Frequently Asked Questions
Transparency in real estate investing is paramount. We are committed to answering all your questions and guiding you through the real estate landscape. With clarity and understanding, you can make sound decisions that will bring you closer to your financial goals through real estate investing.
- Currently approximately 9.6%, with an expected range of 9.5-10.5% overall
- Returns may fluctuate a bit to the upside if in fact rates go up again
- Interest start 90 days after the investment is made. That is called the deployment period
- Interest will be paid monthly
- Interest can be reinvested ??
- The limited partnership is perpetual. Theoretically the investment can last more than 20 years. It is entirely likely that at 7-8 years the partnership will be liquidated & funds distributed
- If you would like out early, after a holding period of 18 months from subscription, you can make a redemption request & within 90-days, on a best-efforts basis, you will receive a distribution
- Should there be any event that the Sponsor deems putting the goal of the partnership at risk, at the sole discretion of the GP/Sponsor the fund may be liquidated & capital distributed
- There are no subscription fees or distribution fees
- There is a 2% annual management fee, earned & paid by the income received
- There are modest expenses of the partnership for accounting, legal, & other miscleaneous costs which will be paid from earnings as well
- We have multiple sources of borrowers in addition to word of mouth, as we have been in the business for over 40 years & borrowers come to us when we have capital
- Additionally, we have a network of trusted brokers who look to us to fund some of their transactions
- Plus, the private lending community, like the hard money broker community makes loans available to firms like Fund XI
- We lend in most of the lower 48 with some exceptions being states with high regualtory risk factors, including Maine, ND, SD, FL, NJ, NY and DC.
- We also have some states we are cautious in, FL.
- Rules are changing all of the time, so Maine just had some very favorable court decisions, so while we have not lent there, we may look again
- We have third party bookkeeping and accounting
- We have internal portfolio review & underwriting
- All fund flow through nataional banks
- There is little or no impact on the loan portfolio itself in market fluction
- There may be changes in the value of the collateral in market fluctuaitons, but most of the time, that collateral needs to change at least 30% negatively AND the borrower has to default before there is any impact on the portfolio
- We will communicate monthly with distributions checks & possibly modest state of affairs of the portfolio
- We will communicate quartherly wiht full financial statements and a comprehensive state of affairs of the Fund XI
- We pride ourselves in the effort to align our interests with those of our Limited Partner/Unit Holder/Investors. Some of the ways we do that are:
- We do not lend to ourselves
- We do not lend to related parties to any of the principals
- We do not lend to any of our equity interest partnerships
- And our revenue does not come from raising the capital or making the loans. Our managment fees come from collecting return for our investors and sharing when we collect more.