We are proud of the Fund's excellent track record and continually look for ways to improve our credit analysis and underwriting--making adjustments to lending criteria when required. Our goal is to deliver positive returns to our investors every year and in all economic environments. Aloha's portfolio manager has been running successful alternative investment funds since 1997.
***Based on timing of our monthly financials, the prior 1 - 2 months returns reflected in the performance capsule are estimated. Further information related to past performance appears at the bottom of this website.
|Max Draw-down||Positive Months||Negative Months||Total Return||Sharpe Ratio|
in the Portfolio
Aloha LTD Income Fund offers investors access to a professionally managed portfolio of high-yield, first position loans on single family and multi-family residential properties in 50+ markets.
Every loan is personally guaranteed by experienced real estate investors who are underwritten by our team of private lending experts.
MONTHLY SUBSCRIPTIONS &
BY ACH Payment
monthly income and liquidity to our investors.
Short-Term, Recourse Loans
Thirteen month bridge loans, with an average payoff in eight months, thereby mitigating market downturn risks.
Borrowers are aligned with Fund investors, since they have capital in their deals and personally guarantee the loan.
Institutional Quality Notes
The underwriting process aligns with our smart money institutional capital partners.
Notes held in the Fund can be sold early in the loan's life cycle, which significantly reduces the probability of defaults.
Multiple Exit Plan Analysis
The borrower's primary and secondary exit plans are key underwriting factors.
Sound exit strategies reduce the probability of loss if market conditions change, or if Aloha is required to take over the project.
Experienced Borrower= Reduced Risk
Our borrowers have proven experience executing their real estate strategies.
Repeat borrowers are typical with Aloha. This creates stronger partnerships, more transparency and ongoing lending opportunities.
Why Invest With Us?
Aloha's principals have been managing money since 1996. With twenty-five years of experience in designing and executing investment strategies, we understand how to navigate the inevitable ups and downs of the business cycle. We made money for our Fund investors in the dot.com bust of 2000-2001 and during the financial crisis of 2007-2009. We believe that real estate lending offers an excellent risk-adjusted return, uncorrelated to the stock market with steady, low volatility returns during both bull and bear markets.
Many of our investors are friends, family, or past colleagues that trust us with their hard earned wealth. We seek to preserve and growth our partners' wealth in the long run. We take great pride in the fact that many of our new investors are referrals.
FUND BENEFIT AND FEATURES
Our team of lending experts has produced a stellar 5 year track record of success.
We have 60+ consecutive positive months with low volatility and average annual returns of 11.09%.
A residential real estate investment that is more liquid than owning property or individual notes.
Monthly additions and quarterly withdrawals of capital.
Easy access to a robust sector that has strong economic fundamentals.
The $38 Trillion US housing market is one of the best asset classes in the world.
Gain instant access to a diversified pool of high yield loans.
1st position, short-term residential real estate loans in over 30 states and 125+ borrowers.
REPORTING & INCOME
Investors receive monthly reports on their account and details on the portfolio of loans.
You decide to receive monthly income via direct transfer into your bank account, or compound returns.
The Fund employs two third party CPA firms, one for monthly accounting and one for annual audited financial statements.
This redundant structure provides our investors with maximum safety. Service providers are available for reference.
|LEGAL COUNSEL||Rimon Law, PC (Securities); Larocca Hornik Rosen & Greenberg (Lending); Geraci Law (Lending)|
|FUND ADMINISTRATOR||Fleming Fund Services, CPAs|
|AUDIT AND TAX||Stout, Causey & Horning, CPAs|
|DISTRIBUTIONS||No lockup; Quarterly W/ 45 Days Notice|
|MANAGEMENT FEE||1.0% Annually, Charged Monthly (Reduced by 50% if invested by Sept 1, 2020)|
|LOAN SERVICING FEE||10% Servicing Fee on interest earned|
|ACCOUNT TYPES||Accredited Investors, Non-qualified, IRAs, ERISA, Foundation/501(C)3, Etc.|
What about defaulted loans?
|Loans To Date (#)||Loans To Date ($)||Default Rate (%)||Resolved Default Loan RoR (%)|
Below are the three primary methods available to exit from a loan in default along with an actual example of each.
Loan Underwriting Process
systematic underwriting method based on six key borrower characteristics & eight property elements. These fourteen data points combine to make up our credit grade for each loan. We pass on deals that don't meet our minimum criteria.
Personal Financial Statement
Purchase Price vs. Appraised Value
Rehab Budget & Feasibility Study
Est. ARV vs. Appraised ARV
Profitability w/ Sale Exit
Cash Flow w/ Rental Exit
Zip Code Median Value vs. ARV
Zip Code Median Value Annual Trend
Zip Code Population Density
Chief Operating Officer
All loans are underwritten, originated and serviced by our internal team of lending experts at Aloha Capital (an affiliated entity of the Aloha LTD Income Fund). We take great pride in creating a team that not only understands our lending business, but also intimately understands how their role affects investment return delivered to our Fund Investors. Their compensation is aligned with the performance of the Fund’s loan portfolio to ensure their success is in lock step with yours.
Loan Coordination - Manager
Ashley manages all aspects of borrower & property underwriting along with coordination of property valuations, title policies, loan document prep, and post close activities.
Jazmine assists with all aspects of borrower & property underwriting along with coordination of property valuations, title policies, loan document prep, and post close activities.
Matt assists with all aspects of borrower & property underwriting along with coordination of property valuations, title policies, loan document prep, and post close activities.
Caitlin manages all outbound sales efforts including Aloha Capital’s presence at real estate investment conferences, meetups and other face to face opportunities.
Blair manages our sales efforts on inbound lending opportunities for all loan products and manages the initial borrower and property underwriting.
Patrick manages our sales efforts on inbound lending opportunities for all loan products and manages the initial borrower and property underwriting.
Brandon Threlkeld, CPA
As we continue to monitor the rapidly changing landscape, Aloha is implementing prudent changes to protect our fund investors and borrowers. We feel these changes provide both groups with the best opportunity for success going forward. Most significantly, we paused lending for 45 days while we surveyed the new environment.
First and foremost, we've had a number of inquiries as to how Aloha is performing in this challenging environment. Regarding Aloha LTD Fund's outstanding loans, we have not seen a meaningful increase in missed loan payments or defaulted loans since the pandemic began. In fact, we have collected 95% of
Like so many of you, we have spent the last several days and weeks closely monitoring the impact COVID-19 is having on our communities, the markets, and the world. Our hearts and thoughts go out to the people who have been affected by this unprecedented event and we appreciate all those
With every new year, those of us in real estate and other businesses look into our crystal ball to try to assess what lies ahead. And as we assess the outlook for housing in 2020, we should note that one group is unusually bullish - homebuilders. According to the December
First, we hope everyone is having an enjoyable Holiday season thus far! And we'd like to wish you and yours a Happy New Year in 2020! Of course it's a great time to reflect on the year that's almost passed and to project and plan for our desired positive changes
The Fix and Flip Business is Increasingly Competitive; but Enterprising Flippers are Still Making Good
It's getting increasingly difficult to turn a profit in the house flipping business these days. At least that's the story making the rounds in the press recently. Some of the reasons given: home prices are high, there are fewer distressed or foreclosed properties available to buy inexpensively, and the competition
Over a decade has passed since the end of the subprime mortgage crisis, and since then the stigma associated with "sub-prime," "unconventional" and "non-agency" mortgage-backed securities (MBS) has clearly shifted. These investment vehicles are finally making a comeback. In 2018, the number of unconventional mortgages increased to the highest level
In the third quarter of 2008, U.S. mortgage debt hit a record $9.294 trillion. That extreme marked the end of the housing boom and the beginning of the Great Recession. So, when we hear that U.S mortgage debt has recently surpassed its 2008 peak, it might raise concerns. But this
This month, given the recent, constant barrage of international news in the press, we decided to relate the issue of US real estate markets to foreign interests and sales stats. As you'll see-these foreign investors have been pulling back substantially in their buying of houses here at home over the
Just last December, many economists were sounding loud and consistent alarm bells that interest rates were poised to rise (potentially rapidly) in 2019, and that the peak in U.S. home prices had been hit. As of summer 2019, it looks like the experts were wrong on both counts. Since touching
Last summer, a middle school teacher and her husband spent several months trying to buy a home in Denver, only to be repeatedly outbid by fellow house hunters. The Colorado natives were trying to move back to the neighborhood where they grew up, after living in San Jose, California for
These days there's a lot of good data on residential real estate markets. Here are examples of a few of the metrics than can be helpful to keep tabs on: Days on MarketMedian sale price% of homes that sold above list price% of homes that had a price dropInventory (number
Last week, the yield on 3-month treasuries dipped below the yield on 10-year treasuries. The last time this "yield inversion" happened was late 2007, and it preceded the worst U.S. recession - and the worst housing market -- in a generation. Is history repeating itself? Statistically speaking, it's pretty unlikely.
We are into the eighth year of the real estate bull market. A strong economy, low interest rates and favorable demographics are among the factors behind the expansion. But the bottom-line reason for the real estate expansion: there simply aren't enough houses for sale. As we've written about previously, this
Stocks just experienced their worst December since the Great Depression. While the stock market has bounced higher so far in the new year, analysts warn that after a decade-long run, a bear market in equities is increasingly likely. Where can an investor go to preserve capital if stocks weaken further?
Well, here we are again, the Holiday season is upon us! And as it seems wont to do, maybe it's surprised you somewhat by how quickly it has arrived. This time of year, as in the past, we like to switch gears from our typical monthly investor letter to focus more on
There's been a lot of drama in the financial world lately: Roller-coaster market swings, interest rate jitters, trade-war worries and mid-term election craziness. Hasn't been a dull moment. But from our perspective as real estate lenders, it's been pretty much business as usual. One of the great things about real
In this letter, we shift the focus from a broader discussion of economics and real estate markets, to the specifics of Aloha's lending business. All lenders have non-performing loans. The processes and protocols employed in working out these loans are an important part of a private lenders' business, and ultimately
Aloha Capital had another productive month of private lending in July. All Aloha loans are collateralized by single & multi-family residential real estate, first position liens and personal guarantees by sophisticated real estate investors. Since inception, Aloha has originated over 600 loans, with $65 million of face value. We are currently
Aloha Capital had another productive month of private lending in June. All Aloha loans are collateralized by single & multi-family residential real estate, first position liens and personal guarantees from sophisticated real estate investors. Since inception of the Fund, Aloha has originated over 580 loans. In recent years, few residential real
Aloha Capital had another productive month of private lending in May. All Aloha loans are collateralized by single & multi-family residential real estate, first position liens and personal guarantees from sophisticated real estate investors. Since inception of the Fund, Aloha has originated over 570 loans. Nearly one in four Millennials still
Aloha Capital originated 15 loans for the Fund in April. All loans are collateralized by single & multi-family residential real estate and personal guarantees from sophisticated real estate investors. Since inception of the Fund, Aloha has now originated over 550 loans! Aloha Capital originated 15 loans for the Fund in April.
Aloha Capital originated 27 loans for the Fund in March. All loans are collateralized by single & multi-family residential real estate and personal guarantees from sophisticated real estate investors. We added 3 new borrowers, bringing us to 44. We also added two additional states - Georgia and North Carolina -
Greetings! The key question of buying and hold vs. fix and flip has always been up for debate among real estate investors. While flippers are seeing top dollar sales on their exits, landlords are also charging record-breaking rent - and they're getting it. Will this premium paid last, or are
Aloha Capital originated nine loans for the Fund in February, all backed by single family residential real estate. Seven loans were repaid. Of 96 total loans outstanding in the portfolio, six were non-performing. The National Association of Realtors reported existing home sales rose 3% in February. Nationally, 5.54 million units
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Where to find us
4676 N. Broadway
2nd Floor East
Boulder, CO 80304
*The performance data listed above represents the past performance of Aloha LTD Income Fund LLC; past performance does not guarantee future results; current performance may be lower or higher than performance data presented; qualified potential investors can contact us for current performance data. The Average Annual Return reflected includes 2015 to 2019 and not the current, partial year.
This material is provided for informational purposes only. Nothing contained in this material is an offer to sell or solicitation of an offer to buy any security. Any offering of securities by Boulder LTD Management LLC or its affiliates (“Boulder LTD”) will only be made pursuant to the terms of a private placement memorandum. In addition, (i) any securities offered to investors that respond to any general solicitation or general advertisement made by Boulder LTD Management LLC may be sold only to accredited investors; (ii) such securities will be offered in reliance on an exemption from the registration requirements of the 1933 U.S. Securities Act (the “Securities Act”) and such securities are not subject to the protections of the U.S. Investment Company Act of 1940 or required to comply with specific disclosure requirements that apply to registration under the Securities Act; (iii) the United States Securities and Exchange Commission has not passed upon the merits of or given its approval to any securities offered by Boulder LTD, the terms of the offering, or the accuracy or completeness of any offering materials; (iv) the securities will be subject to legal restrictions on transfer and resale, and investors should not assume they will be able to resell their securities; and (v) investing in securities involves significant risks, and investors should be able to bear the loss of their investment. Opinions expressed herein are not intended to be a forecast of future events or a guarantee of future results. Although this material may include investment-related educational information, nothing contained herein, or in any other communications made by Boulder LTD, is a recommendation that you purchase, sell or hold any security or other investment, or that you pursue any investment style or strategy. Boulder LTD Management LLC does not give any advice or make any representations as to whether any security or investment is suitable for you or will be profitable. Past performance is not indicative of future results. Although information in this document has been obtained from sources believed to be reliable, Boulder LTD does not guarantee its accuracy or completeness and accepts no liability for any direct or consequential losses arising from its use. Any referred to indexes are unmanaged and are shown for illustrative purposes only and do not represent the performance of any specific investment. Index returns do not include expenses, fees or sales charges, which would lower performance. Boulder LTD does not provide tax or legal advice. Investors should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.