Every investor wants the “best” return for their capital – but how exactly is that defined? The short answer is that it varies based on individual goals.
Fundamentally, all investors can agree that they want their money somewhere safe and secure which also produces high yields. In traditional markets, that typically means sacrificing liquidity. What many don’t realize, however, is that there are alternative options that create the best of both worlds: giving investors quick access to their funds without sacrificing yields.
At Pacific Private Money, we call that freedom – more specifically, the Pacific Freedom Fund.
How it works
The Pacific Freedom Fund utilizes capital raised from private individual investors to make short-term mortgage-backed loans predominantly for single-family residential purchases or multifamily development projects. The key is that the loans are short-term in nature, typically not exceeding 18 months, with an average loan paying off within just six months. The Pacific Freedom Fund may also sell loans to small private equity firms that specialize in mortgage investments.
One of the most popular loans under the umbrella is consumer bridge loans, which help buyers looking to close on their new home before selling their old one or competing with cash buyers – the latter being increasingly important given the state of the housing market.
The security of the Pacific Freedom Fund is centered around the pool of real estate and its funding at any given time, insulating yields from issues that might arise with individual real estate. Pacific Private Money also receives a lender’s title of insurance with every loan to protect the investment from hazards like fire or flood.
Designed for liquidity.
What sets the Pacific Freedom Fund apart is its focus on liquidity. While most high-yield investments lack it, the Pacific Freedom Fund is designed to provide both in a way that traditional investments aren’t.
Investors are encouraged to keep their capital in the fund for a minimum of one year, but there aren’t any penalties for early redemption with a 30-day notice. This feature caters to investors who prefer high-yield investments but also might need to access their funds quickly.
Liquidity is nice, but results are what matter.
The Pacific Freedom Fund has never lost any principle on a loan that it’s made which, as a result, means investors have never lost a dime on their investment. That’s not a coincidence – rather the result of the safety and security features built into the fund.
At a loan-to-value ratio of 75% or less, the fund avoids “risky” loans, is conservatively underwritten and prioritizes serving high-quality and experienced borrowers with a demonstrated track record of success.
Learn more about the Pacific Freedom Fund and how it can be a valuable and safe addition to your portfolio.