OREGON’S PREMIER PRIVATE LENDING COMPANY
Founded in March of 2017, Cetan Income Fund LLC is in short-term, small balance, private real estate lender in Central and Western Oregon. The investment objective of the fund is to leverage the sustained economic growth in Oregon to deliver stable, attractive risk-adjusted returns. We have achieved consistent annualized returns since inception of 8.97% net of all fees to our accredited investors (as of 6/30/20). Our loans are real-estate secured in the first lien position except in rare occasions when we will do a second lien if the risk is acceptable. This model has proved successful as we have a 0.08% loan loss rate in the history of the fund. Loans are selected through a conservative lending model based on over 60 years of combined lending and real estate development experience in Oregon by the management team.
Property Geographic Area Details
Western and Central Oregon
Investment Type
Mortgage Fund
Target Return
8% to 10% Annually
Minimum Investment
$50,000
Lien Position
Majority are 1st Liens
Average LTV for All Loans
60%
Average Loan Term
12 months
Property Types and Loan Types
Collateral Types
- Residential Property
- Commercial Property
Property Types
- Residential Investment
- Residential Land
- Commercial Land
- Multifamily
- Retail
- Office
- Industrial
- Mixed-Use
- Hospitality
- Healthcare
- Assisted Living Facility
- Storage Facility
- Senior Housing
- Student Housing
- Mobile Home Park
- RV Park
- Automotive
Loan Types
- Purchase
- Refinance
- Equity Cash Out
- Fix & Flip
- Rehab Value Add
- Ground-Up Construction
- Long-Term Rental
Investor Types
- Individual Accredited
- Ultra High Net Worth Investor
- Family Office
- Private Equity
- Hedge Fund
- Pension Fund
- Foundation
- Endowment
- Insurance Company
Leverage
Levered
Recapitalization
All Loans Held in Portfolio
Commitment Term
18 months
Redemption Notice Period
90 days
Distributions Paid
Quarterly
Management Fee
1.5%
Assets Under Management
$12,300,000
Mortgage REIT
No
IRA Investment Option
Yes
Securities Exemption
Regulation D 506(c)
Inception Date
March 1, 2017
Fund Term
Open-End
Maximum Offering
$50,000,000
Performance Split
No performance split, management is not incented to stray from our strategies to build yield. Our fee is enough.
PROVEN FUND MANAGEMENT
The Principals — Mary Merriman, Steven Yett and David Yett — have over 60 years of combined lending and real estate development experience in the state. With so many people moving to Oregon, builders and developers generate a persistent demand for housing and commercial loans. The team knows the region and market well, has established relationships and is uniquely qualified to vet potential loans and manage the fund, as results show.
Cetan Income Fund has consistently delivered 8-10% annualized returns to investors since its inception due to management’s expertise and successful strategies. Unlike many hard money lenders, the fund is a private relationship lender and forms strong partnerships with both borrowers and investors. Conservative underwriting with disciplined due diligence of borrowers and underlying real estate assets mitigate credit risk. Maintaining a diversified mix of short-term loans results in an average asset turnover rate of 12 to 15 months.
Investing in Cetan Income Fund is an excellent choice for investors seeking to diversify their investments and earn attractive risk adjusted returns.
THE CETAN ADVANTAGE
Borrowers experience the Cetan Advantage in many ways:
Smart money: Leveraging our team’s 60 years of lending and real estate development experience in Oregon to shape the right loan for them.
Vested in success: Building a long-term relationship with us, partnering on multiple deals.
Speed: Receiving underwriting answers in two to four days and loan closings often as fast as seven days.
Flexibility: Getting a loan tailored to their project’s specific needs.
Simpler interest: Only paying interest on the outstanding balance or the draw schedule, not the full loan commitment.
CETAN MEANING
Cetan (seet-n): The hawk spirit in Lakota mythology signifies keen vision, speed and loyalty.
Cetan Income Fund Overview
- Current Fund Size: $12.3 million as of 2020 Q2
- Maximum Offering: $50 million
- Investment Options:
- Membership Units —Equity
- Promissory Notes — Debt
- Manager: Cetan Management, LLC
- Loan Originator & Servicer: Cetan Funds, LLC
- Fund Term: Open-ended Evergreen
- Minimum Investment: $50,000
- Leverage: The fund uses a bank line of credit only for temporary liquidity and notes held by investors
- Member Distributions: Quarterly
- Fees:
- Management — Up to 2.0% of assets under management
- Loan Servicing — 1.0% of assets under management
- Fund Type: 506(c) Offering
- Investor Eligibility: Accredited Investors
Quarterly Snapshot – Q2 2020
- Average Annualized Quarterly Return: 7.26%
- Assets Under Management: $12.3 million
- Number of Investors: 59
- Member Equity: $11.7 million
- Investor Notes: $440,366
- Weighted Average Asset Life: 12.1 months
- Number of Loans: 36
- Principal Outstanding: $11 million
- Weighted Average LTV: 60%
- Delinquency Rate: 5.5%
Cetan Income Fund, LLC is open to accredited investors only. Individuals must pre-qualify before investing. This does not constitute an offer to invest in the fund and is for informational purposes only.
