Q: What is a Mortgage Pool?

A:

A mortgage pool accepts money from investors and then loans that money to property owners with the property serving as collateral. The secured loans are comparable to bridge loans in that they are made at higher interest rates, typically 12% interest and 4.0 points.

 

Q: What are the similarities between a mortgage pool and mutual fund?

A: In both a mutual fund and mortgage pool, the investor purchases shares that have a certain value at that specific time. Unlike a mutual fund, investment funds are secured by real estate and not subject to the volatility of the stock market.

 

Q: What is the allocation of points and fees?

A: All fees and up-front points become income to the mortgage pool.

 

Q: How much does our mortgage pool earn?

A: Our mortgage pool, secured by real property as a 1st trust deed, provides a current rate of return in excess of 10% annually.

Q: Who can invest in our pool?

A: Shares can be purchased by individuals, trusts, corporations, self-directed IRA's, SEP IRA's, pension plans, etc. You must meet certain minimum standards of income, and/or net worth.

 

Q: How do our investors receive their return?

A: Mortgage pools offer investors the option of receiving a monthly check, or growth through reinvestment (compounding) of earnings. Our structure accomodates qualified pension funds or IRA's, which makes it a great vehicle for tax-deferred investment sources.

 

Q: How much may I invest in the pool?

A: The minimum investment is $100,000.

 

 

Q: Will each member receive annual accounting of the LLC?

A: Genesis Capital Partners, the Fund Manager, will provide each member with an annual audit of Genesis Capital Mortgage Fund, LLC completed by an independent CPA firm.