CLP Secured Loan Fund, LLC
The CLP Secured Loan Fund, LLC is designed to provide investors with monthly income from its managed portfolio of mortgage investments. The fund invests in high yield, short-term, senior secured real estate mortgage loans or trust deeds collateralized by real property.
Our driving investment objective is to preserve the principal of our investors capital and generate attractive risk-adjusted returns. In doing so, we have developed a high yielding diversified portfolio that accomplishes two goals; a high rate of return, obtained with low risk to your principal.
We invest in short-term mortgage loans collateralized by first priority mortgages or deeds of trust on real property.
The real estate we target for investment primarily consists of commercial properties such as: retail, office, industrial, multi-family, hospitality, self-storage, mixed use and non-owner-occupied residential.
We make investments that we believe are fundamentally sound and have potential to achieve our stated investment objectives, including a targeted return for our investors.
7% – 11%
We pursue those investments that we expect will allow the Fund to achieve an average annual rate of return of between seven percent (7%) and eleven percent (11%).
How it Works
- Investment capital is received by the Fund from investors.
- The Fund makes short-term loans to borrowers, secured by real estate.
- Borrowers pay interest and loan fees to the Fund.
- Investors receive monthly distributions from the Fund.
*See Investment Document
All of the investments are secured by real estate with a first position mortgage or deed of trust. We fund our loans through an escrow held by an independent title insurance company. In addition to borrowers obtaining lender’s title insurance coverage for loans, we require that fire and casualty insurance for all loans secured by improved real property be properly in place.
While most private loans or asset-based lenders rely primarily upon the value of the real estate backing the mortgage to determine a loan decision, we take a more comprehensive approach. While each specific investment is subjected to its own unique due diligence process and must first meet our lending criteria, we typically assess the following aspects of a potential investment:
- The value of the real property to satisfy our collateral requirements (Loan to Value)
- The borrower’s ability to meet its stated objectives and financial obligations
- The current and future anticipated liquidity of the investment
- Current and projected cash flows of the property
- The property’s geographic location
- The property’s current condition and use
- As applicable, a residual analysis of the underlying asset, taking into account its relative position in the development cycle and time and resources required to maximize its value