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  • Writer's pictureIan Ippolito

Comprehensive Guide to Hard Money Loan Investing Part 4: Top 19 Hard Money Loan Funds 2024

Updated: Jan 3

We found not just 1 but 19 needles in the haystack (in this difficult to find asset-class). Then we gathered 25+ data points on each one (to let you quickly compare and contrast).



(Usual disclaimer: I'm just an investor expressing my personal opinion and am not an attorney, accountant nor your financial advisor. Consult your own financial professionals before making any financial decisions. Code of Ethics: To remove conflicts of interest that are rife on other sites, I/we do not accept ANY money from outside sponsors or platforms for ANYTHING. This includes but is not limited to: no money for postings, nor reviews, nor advertising, nor affiliate leads etc. Nor do I/we negotiate special terms for ourselves in the club above what we negotiate for the benefit of members. Info may contains errors so use at your own risk. See Code of Ethics for more info.)

This is part 4 of a 5 article series:



Why hard money loan funds?

Hard money loan funds have several advantages over investing in single loans on most of the platforms, including the ability to access more conservative LTV's, higher volume, instant diversification, better transparency, easier management and the potential for early liquidation. However, finding a good fund has been very difficult for many investors. Well, this article puts an end to that. We list the top 19 funds (as nominated by Private Investor Club members). Then we then gathered 25 data points on each so you can quickly contrast and compare them.


The Funds

  1. Arixa Capital: Secured Income Fund

  2. Avondale Private Lending

  3. Cetan Fund

  4. Fidelis Private Fund

  5. Fund that Flip: Pre-funding Note Fund (PFNF)

  6. Fund that Flip: Horizon Residential Income Fund I, LLC (HRIF)

  7. Herzer Financial Mortgage Fund (Fund II)

  8. GTIS US Real Estate Debt Strategies Fund

  9. Lynk Capital

  10. Parkview Financial

  11. Pelorus Equity Group

  12. RD Advisors Real Estate Debt Fund II

  13. Socotra Fund

  14. Socotra Opportunity Fund

  15. Sortis Income Fund

  16. Stallion Texas Real Estate Fund (STREF): Stallion Capital Management

  17. Stallion Texas Real Estate Fund II (STREFII): Stallion Capital Management

  18. W Financial

  19. Wilshire Quinn Hard Money Fund

Data points gathered on every fund:

  1. Last year's return

  2. Target return

  3. Standard Minimum investment

  4. Reduced minimum for PIC?

  5. Distribution frequency

  6. Lends in non-judicial states only?

  7. First position loans only (or if not, then what isn't)?

  8. Leveraged? (if so, max and current?)

  9. Average loan term

  10. Date fund started

  11. Max LTV (is this a legal PPM limit or a target)?

  12. Current average LTV

  13. Geographic focus

  14. Loan type*

  15. Asset type**

  16. AUM

  17. Number of loans (currently)

  18. Principal's investment ($ and %)

  19. Loan Loss Reserve? If so, current and goal %?

  20. Uncured default rate (defined as more than 60 days without payment)

  21. Withdrawal lockup period/redemption policy

  22. All fund compensation including fees, splits, etc.

  23. Generates passive or nonpassive income?

  24. REIT Structure?

  25. Contact person

  26. Also, a link to detailed discussion of the fund by PIC members

Note: the full article is for members of The Real Estate Crowdfunding Review Private Investor Club. Membership is free but is restricted to investors only. Platforms, sponsors and their affiliates are prohibited. If you qualify, click here to join.

Next article in this series

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About Ian Ippolito
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Ian Ippolito is an investor and serial entrepreneur. He has been interviewed by the Wall Street Journal, Business Week, Forbes, TIME, Fast Company, TechCrunch, CBS News, FOX News, USA Today, Bloomberg News, Realtor.com, CoStar News, Curbed and more.

 

Ian was impressed by the potential of real estate crowdfunding, but frustrated by the lack of quality site reviews and investment analysis. He created The Real Estate Crowdfunding Review to fill that gap.

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