SOUND. AMBITIOUS. TRANSPARENT. PROFITABLE.
Underwriting guidelines are documented in the fund’s offering and remain constant
throughout the life of the fund.
PROJECT SELECTION
Projects will be selected in and around metro areas of the United States where economic growth is forecasted with a specific focus in Pacific North’s home state of Colorado.
Once a project is selected Pacific North along with PNE Capital Management will spend 60-90 days performing its due diligence.
All potential projects must go before the advisory board for a final recommendation.
Projects will be between $2M and $15M depending on the overall size and complexity.
These projects will consist mostly of residential developments but commercial, vertical construction, and residual income properties will also be considered on a case by case basis.
UNDERWRITING
Our primary criteria will be to utilize a widely accepted commercial appraiser to determine the “as is” value and “as completed” value. These values will be determined only by a certified commercial appraiser.
All loans must conform to a 75% loan to value ratio and be secured by a first deed of trust. This ensures that even in a market that changes direction, investments are protected and remain secured by a first deed of trust that can not be leveraged.
RETURN ON INVESTMENT
Our interest rate return will be targeted between 11% – 12% to investors that will be paid annually at the managers discretion.
In addition, all investors will receive a 10% net profit distribution from the projects that is not limited or capped.
These two returns combined will give an estimated targeted return of 15% – 18% paid annually as the projects perform and are sold.