Investor Profile:We are seeking “Qualified Client” investors interested in the opportunity to participate in a fund with a diverse real estate portfolio.
Lending Criteria: As an alternative to traditional bank financing, We will offer short term, first position financing on low loan to value loans, across the United States. These loans will build a national portfolio and will consist of multiple commercial and investment property types. These loans will be based on a maximum of 65% of market value, will generate at minimum a gross IRR of 13% and have hold period of 12 months.
For over the past 2 years, traditional lending institutions are seeing property values going up, delinquency rates and charge offs reducing and a record number of loan applications. These factors, combined with new loan originations projected to top $200 billion annually by 2016 and over $200 million annual worth of loans scheduled to reset over the next 2 to 3 years.
National lenders are backlogged with applications and challenged to issue approvals due to their stringent underwriting guidelines, this factor is creating a overwhelming demand for short term alternative commercial lending. In order to take advantage of this lending re-birth, the fund managers have developed a first trust deed fund, called the Bainbridge Hershiser Income Fund.
This fund will have two specific missions. The first one will be to attract investors who want to diversify their investment portfolio with real estate debt. The second will be to become a national resource for borrowers who need an alternative option for a short term loan.
Leveraging the capital investments with low loan to value, short term loans will allow the fund to offer a
valuable alternative lending product, build a national portfolio with equity and produce attractive returns
for the investors.