Frequently Asked Questions
How does a Mortgage Fund or Mortgage Pool Work?
An investor purchases shares of the mortgage fund, which then lends money to borrowers for purchase or refinance of properties. Borrowers make interest payments to the fund, and once a month the fund distributes the income (dividends) to its Members. This is similar to mutual funds purchasing a large number of stocks and distributing dividends.
What is the minimum investment?
The minimum investment amount is $5,000 (5 shares).
Do I have to pay a load or commission when I invest?
No portion of the gross proceeds of this offering will be used for the purpose of paying selling commissions or fees incurred in the sale of shares. 100% of your investment goes into the Fund.
How much will I earn on my investment?
It varies, but currently, investors of the Fund are earning just over 7% annually.
How often does the Fund pay a dividend?
The Fund pays a monthly dividend, which is paid out on the 1st of each month for the previous month's interest. Investors have a choice of monthly cash distributions, distributions reinvested by purchasing additional shares, or a combination of both.
Can I invest my IRA in the Fund?
Yes, self-directed IRA's can invest in the Fund. This can be done at TD Waterhouse, Pensco Trust, and a growing list of other firms. Please call (800) 899-4718 and ask to speak to an Investor Relations Manager for more details.
Are there suitability standards?
Yes. Shares are offered exclusively to qualified investors who are California residents and who meet certain minimum standards of income and/or net worth.
Where are the properties located that the Fund loans money on?
The vast majority of the portfolio is secured by California real estate.
Can an investor withdraw their investment?
A Member may withdraw at any time, however, the right to sell shares is limited. The fund will use its best efforts to redeem shares for Members within 30 days of receiving a written request from the Member. Large withdrawals generally require longer waiting periods.
What information is provided for tax reporting?
Income information is reported on a Schedule K-1, which is sent to investors in February.
How do I invest?
The offering is made through the Offering Circular. After reading the Offering Circular, we welcome the opportunity to answer any questions you may have. When ready to invest, complete the Subscription Agreement and return it with your check, made payable to the Private Capital Fund, LLC.
How can I receive more information?
For more information or to request an Offering Circular, please contact an Investor Relations Manager by:
Phone: (800) 899-4718
Email: info@stonecrestmanagers.com
Website: www.stonecrestmanagers.com
We are always available to meet with you and answer any questions you may have regarding Stonecrest Managers and the Private Capital Fund, LLC.
The information on this page is only a brief summary of, and is qualified in its entirety by, the detailed information appearing in the Offering Circular. The Offering Circular should be read in its entirety before any investment decision is made.