Seeking a real estate investment option with a proven track record of optimized returns year-after-year with unmatched liquidity and flexible terms to boot? Look no further than The Bedrock Mortgage Fund (the Fund)—a dynamic real estate investment fund that is revolutionizing the real estate investment industry with its meticulously-targeted portfolio of short-term, high equity real estate loans that produces consistent results for its investor pool. That’s what you get when an ultra-experienced group of real estate and financial professionals combine forces. All combined, the leadership staff of the Fund have provided financial backing on more than 2500 transactions and have bought and renovated over 1500 homes. Their results are a testament to their intimate knowledge of the business and unparalleled work ethic when it comes to managing capital.
Geraci LLP had the distinct pleasure of talking with Mark McKeller, Director of Originations for The Bedrock Fund, who gave us a proverbial ‘peak under the hood’ to better understand the tremendously effective strategy driving the Fund’s impressive rate of returns. Mark brings with him a wealth of experience in the investment space- his companies alone have purchased more than 800 properties across nine major national markets, on top of originating over $5 million of asset-backed bridge loans to investors. In addition, since 2000 McKeller has been a Franchisee and Development Agent of HomeVestors of America, Inc (the “We Buy Ugly Houses” Company) through which he knows over 1200 experienced investors who can originate loans with the Fund.
There’s a Method to the Madness—And it Works
The Bedrock Mortgage Fund, LLC is a uniquely structured real estate investment fund specializing in short-term, high-equity real estate loans concentrated in the single and multi-family residential markets. The secret to their success? The Bedrock Fund only offers financing to a carefully vetted contingent of qualified investors with proven track records of producing optimal returns on well-researched investment projects. Using its connections with HomeVestors, the Fund is able to tap into a vast network of experienced professional real estate investors who originate solid, safe loans. To date, the Fund has no defaults and not even a late payment on the books. Even during COVID, not a single Fund investor requested a forbearance or any financing consideration. This national investor network can also assist in mitigating risk by securing, repairing and selling any property the Fund needs to acquire in the unlikely event of foreclosure. The Fund loans typically range from one month to one year and provide the needed liquidity for their customers to acquire discounted real estate assets, complete any needed renovations and then proceed to resell them at a higher price point or refinance them as income-generating rental properties.
The Bedrock Mortgage Fund originates commercial residential loans on properties that are valued around the median in a market, which tends to be the least volatile sector with the best rents relative to cost. The Fund loans are secure since they are usually less than 75% of the value of the properties, with a first mortgage position. If a borrower defaults on a loan, the Fund can secure the property and sell it without incurring a significant, if any, loss. HomeVestors’ national network of investors can help with this if necessary. The Fund will only do loans where there are experienced HomeVestors Franchisees who can, at the Fund’s request, take control of a house, repair and sell it if needed, thereby allowing the Fund to recoup its investment.
The Bedrock Advantage: Higher Interest = Higher Return on Investment
The loans extended by the Bedrock Mortgage Fund are intentionally geared exclusively towards experienced, full-time real estate investors. The financial experts at the Fund apply stringent underwriting criteria and thoroughly evaluate each and every proposed deal to effectively mitigate any potential risk factors and optimize returns for their clients. Accordingly, these loans require a substantial degree of equity—generally over 25%–and are often not available from conventional lenders. This provides the Fund invaluable flexibility to charge premium rates typically higher than those associated with standard mortgages. Why is this aspect so critical for individuals considering investing their hard-earned money in The Bedrock Fund? In a word: profitability. The practical effect of the Fund’s ability to impose higher interest rates is that its investors’ returns are consistently predictable and significantly higher than other alternatives they may have for investing cash assets. In fact, investors in the Fund may receive their interest payments on a monthly basis if they choose to do so. And because the notes are short-term (one-year commitments), investors have the individual autonomy to transfer their capital freely in and out of the Fund.
The Bedrock Fund pays investors 7% annually on their deposit balances that can either be collected via monthly cash payouts or reinvested in the Fund for a compounding effect. Fund investments are available for one year or more, with investors afforded the option to request principal refunds as long as they provide proper notice. The majority of loans extended by the Fund are fully paid off in under six months, giving the Fund a significant amount of liquidity which it leverages to benefit its investors. Single investments in the Bedrock Fund range from $50,000 on the low end to $100,000,000 on the high end—with investments in excess of $25,000,000 requiring a stepped investment schedule.
Put simply, The Bedrock Fund offers its investors a substantially more profitable interest rate than other investment alternatives like savings accounts or bank CDs while providing comparable liquidity—essentially the best of both worlds from an investor’s perspective. The Fund uses its capital to facilitate meaningful investments in the single-family housing sector in a diversified manner painstakingly formulated to mitigate any risk factors that could have a negative impact on investor returns. The end result is an investment vehicle that offers returns on par with long-term mutual funds without investors having to lose sleep over the inherent volatility of the stock market.
Invest with Confidence: The Bedrock Fund is VeriVest Certified
Does The Bedrock Fund almost sound too good to be true? We can’t fault you for this thought crossing your mind—but rest assured, the Fund is legit. The Bedrock Fund is fully verified by VeriVest, meaning that it has been fully vetted by the leading due-diligence entity in the real estate industry. VeriVest has confirmed that The Bedrock Fund:
Had no personal or business bankruptcy petitions for controlling principals in the past seven years
Had no unfavorably resolved litigation involving allegations of fraud or similar misconduct
Experienced zero regulatory sanctions in the past seven years
Had no felony criminal convictions affiliated with the Fund in the past seven years
Interested in learning more about how to get involved with The Bedrock Fund? You’re in luck! Mark is a featured speaker at the upcoming Geraci Captivate 2021 Conference August 18-20 being held at The Cosmopolitan of Las Vegas, where he will be discussing the many advantages potential investors can take advantage of by collaborating with The Bedrock Fund. Can’t make it to the conference? No worries—reach out to Mark via phone: 404-317-7234 or email: mark.mckeller@thebedrockfund.com to learn more about this dynamic investment firm.
