As a private lender for real estate investments in Oregon and SW Washington, we offer hard money loans that apply to a variety of projects. If you’re a real estate investor, developer or builder with a project in our region, we can probably help you with your funding needs.
Knowing what we can do for you is important as you begin your next real estate investment. We can help guide you through implementing the best strategy for your project that will help you to gain the most profit for the work you’re putting into it. Essentially, we’ll be working hard to help you build wealth through real estate.
Of course, not every private lender is going to offer the same opportunities. Here are a few things we can do to support your real estate venture, and a few things we cannot.
What We Do
Cetan Funds is a hard money lender providing private loans to real estate investors, developers, builders, and small businesses. Our team has over 40 years of local lending experience and over 30 years in local real estate development. All of our loans are exclusively for business and investment purposes.
Being a modern lending company with traditional core values, we pride ourselves in maintaining integrity, fairness, transparency, and a commitment to the success of our investors and borrowers.
Our borrowers work directly with their loan officer from start to finish, navigating each step of their real estate project as a team. You won’t find multiple departments, third-party inspectors, or hidden fees at Cetan Funds. We monitor construction and project progress ourselves to ensure quality and a seamless experience.
As the preferred hard money lender in Oregon, we provide an efficient and flexible lending experience, while also offering our advice, counsel, and referrals to help borrowers succeed in their real estate ventures.
Where We Fund
Based in Eugene, Oregon, we primarily lend here in our beautiful home state of Oregon. However, we also lend in SW Washington; specifically Clark County and the Vancouver area thanks to its proximity to the Portland, Oregon market. We have experience providing loans to borrowers in small towns and rural locations, as well as larger cities.
Due to the versatility of our loans and our knowledge in different areas, we can finance unusual properties and property types nearly anywhere in our lending footprint.
What We Fund
Let’s take a look at some of the types of loans that might be useful for your next real estate project.
Fix and flip rehab loans are short-term loans that help residential real estate investors purchase a home, rehab it, and then sell it quickly.
Our hard money fix and flip loans can finance up to 90-95% of the project costs and up to 70-75% of the property value after repairs. This loan also works great for investors looking to fix and hold by buying, rehabbing, renting and refinancing properties.
We provide short-term residential construction loans to contractors and investors. These loans can finance up to 90-95% of project costs or up to 70-75% of the completed property value. Our residential construction loan process is fast, flexible, and in-house.
We also offer construction loans secured by commercial property to real estate investors, property developers, and businesses in almost every industry. Commercial construction loans financed by Cetan Funds have been used to help businesses grow and allow commercial real estate investors to add cash flowing commercial properties to their portfolios.
A bridge loan is a short-term loan designed to get a borrower from point A to point B as quickly and efficiently as possible. Often, residential bridge loans are used to rapidly purchase or leverage investment properties.
This loan works great for investors capitalizing on our ability to close quickly, including situations with tight 1031 exchange deadlines or investors needing to pull cash-out of an asset to capitalize on another opportunity.
This loan is similar to a residential bridge loan, but is secured by commercial or multifamily property.
If a business owner or real estate investor needs a short-term loan to provide a quick injection of capital for their business or to cover deferred maintenance on a property, they may offer their office building, apartment complex, developed land, or other real property as collateral for this type of business loan secured by their real estate.
We offer short-term, real estate secured land acquisition and development loans for bare land and development projects.
It can be difficult for an investor or land developer to free up enough capital to invest in a promising piece of land. This is where we step in to help. These loans are great for small home builders developing cluster subdivisions, or quickly purchase a lot to build speculative construction on in the future.
At Cetan Funds we have a great team that can help you strategize your best option for whatever type of real estate project you have. Call and talk to one of our highly qualified loan experts to see how to move forward with your real estate investment plans.
What We Don’t Do
Cetan Funds is a hard money private lender that boasts many options to help you succeed in your mission to build wealth through real estate. But there are some types of lending we do not offer.
For example, we do not offer consumer purpose loans which include any loan where funds are used for purchasing, refinancing, or improving a primary residence, secondary residence, or vacation home.
We do not offer conventional loans, like FHA, VA, USDA loans, home equity loans or HELOCs, reverse mortgages, or debt service coverage ratio loans.
We also do not broker or sell loans after funding them, nor do we purchase loans. We specialize in short-term loans and do not offer loans that exceed 3-5 years on their initial term.
Finding the right type of funding for your real estate project can be challenging. That’s why it’s of great benefit to work with a team that can help you navigate the process. Our staff at Cetan Funds can help you sort it all out and find the best loan for your real estate investments.
Reach out and see how we can help you build wealth through real estate.
Loan Inquiry
For more information on how Cetan Funds can finance your real estate project, please fill out our inquiry form below. We will respond in two business days.
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Investor Inquiry
For more information about investing in Cetan Income Fund, please fill out our inquiry form below. We will respond in two business days.
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Broker Inquiry
If you have a deal you need help funding or want to inquire about our Broker Referral Program, please contact us below.
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General Inquiry
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General Investor FAQs
What is Cetan Income Fund’s Investment Objective?
Cetan Income Fund and Cetan Opportunity Fund (the “Funds”) are real estate debt funds that deliver consistent and attractive risk-adjusted returns to investors who seek preservation of capital and income.
Who Manages The Fund?
Our CEO, Mary Merriman, manages the Fund and lending operation. She has over 40 years of lending experience, holding a variety of executive-level positions at banks and an economic development lending organization. Steven Yett is actively involved in daily operations, fund management, and business development. Zach Smith is also an integral part of the team, leading loan originations and other business development activities. To learn more, please visit our Meet the Team Page or contact us.
Can Anyone Invest?
Cetan Income Fund: This Fund is only open to accredited investors with a net worth of $1,000,000 excluding their primary residence, or annual income of $200,000 for single filing status or $300,000 for joint filing status. This Fund is open to investors from anywhere in the United States.
Cetan Opportunity Fund: This Fund is only open to Oregon residents with either 1) a minimum annual gross income of $70,000 and a minimum net worth of $70,000 excluding their home, home furnishings, and automobiles; or 2) a minimum net worth of $250,000 excluding their home, home furnishings, and automobiles.
Can I Invest with IRA Funds?
Yes. Investors with a Self-Directed IRA account can invest in the Fund. Currently, we are well below our 25% threshold.
If you do not have a Self-Directed IRA account, we can help you create a self-directed IRA (SD-IRA) account and use those funds to invest in the Fund. Please contact us with questions and a list of IRA custodians we have worked with in the past.
How Do I Track My Account Balance?
We provide investors a secure online investor portal to access subscription documents, quarterly statements, fund financial information, investor updates, and tax documents.
How Do I Withdraw My Investment?
Every equity investment has a 12-month “lock-up” period where withdrawals are only allowed for hardships and early withdrawal fees may apply. After this “lock-up” period, investors may withdraw at any time with at least 60-day notice.
How is Risk Mitigated?
Management actively monitors our real estate debt fund and mitigates risk by deploying several strategies:
1. We maintain a diversified portfolio of loan types, loan purposes, and geographic locations in Oregon and SW Washington. Our loan types consist of residential and commercial loans with subtypes of new construction, rehab, acquisition and development, and bridge/term. We only finance business-purpose loans that provide funding for purchases, refinances, rehabs, new construction, and development.
2. The portfolio’s weighted average loan size is typically below $500,000, so our transactions are small. Therefore, the projects tend to be more resilient given the high demand for affordable housing and when faced with conditions that negatively affect the real estate market.
3. Generally, our loan-to-value (LTV) ranges are from 60-75% in Cetan Income Fund and 65-80% in Cetan Opportunity Fund, with a portfolio target of a weighted average LTV at 65% or less for Cetan Income Fund and 70% or less for Cetan Opportunity Fund. To determine value we complete an internal evaluation that uses a variety of sources, including an Automated Valuation Model, Broker Price Opinions, as well as our direct sourced market and comparable data. On properties with a unique purpose or for larger loans, we typically order appraisals.
4. Loans are typically secured with first position liens. Cetan Opportunity Fund may also selectively fund loans secured with second position liens.
5. In Cetan Income Fund, loan terms range from 6-36 months with the weighted average asset life in the loan portfolio target of 12-15 months. In Cetan Opportunity Fund, loan terms range from 6-60 months with the weighted average asset life in the loan portfolio target of 15 – 21 months.
6. We use leverage minimally as it is not a permanent funding strategy. Cetan Income Fund has a bank line of credit that is used to meet temporary liquidity needs but rests it at $0 frequently during the year. Cetan Opportunity Fund, on the other hand, was recently launched in 2023 and does not currently use leverage. Once the Cetan Opportunity Fund reaches $5 million in assets under management, we may establish a bank line of credit to use to meet temporary liquidity needs. Management will always limit leverage in both Funds to a maximum of 20 – 25% of assets under management.
Why Do Banks Not Make These Loans?
This is because of several factors, including regulatory constraints, banks’ large overhead expense making smaller loans unprofitable transactions, and obtaining a bank loan often takes too long, or the process of obtaining it is complicated and expensive.
Though the typical borrower is creditworthy, they are seeking a loan that is not readily available from traditional banks and credit unions. Cetan Funds addresses this credit and service void in the marketplace by taking reasonable risk while processing applications with speed, transparency, and accuracy.
What Distinguishes Cetan Funds From Other Non-traditional Lenders?
The Cetan Advantage is what sets us apart from other lenders. It provides borrowers superior lending experiences. As a result, our investors are well positioned to realize a positive investing experience as well. The Cetan Advantage embodies the following values:
- Expertise
- Partnership
- Efficiency
- Flexibility
- Integrity
How Are Returns Calculated and Earnings Distributed to Investors?
Both Funds fully distribute net income to all investors on a pro-rata basis quarterly. All investors are treated equally as we do not have a preferred return, classes of shares, or any other preferential treatment.
We close the accounting quarterly, derive the net income, and then our fund management software calculates the distributions to generate investor statements. Dividends may be withdrawn or reinvested in additional shares. Generally, it takes two to three weeks to close a quarter and distribute the earnings to investors.
Are Your Financial Statements Audited?
Yes, our financial statements are audited annually by a qualified CPA firm that specializes in private equity funds that include real estate debt funds and are posted for existing investors as well as available for interested investors.
What Type of Income Will My Earnings Be Considered?
Equity investors earn ordinary income and will receive a K-1 schedule for their tax returns. For IRA investors, Unrelated Business Taxable Income is generated but is limited to the amount of income that is generated from leverage; hence, it is a very small percent.
None of the information herein is to be construed as a solicitation, recommendation or offer to buy or sell any security, financial product, or instrument. Any projections or targets are aspirational only, are not guaranteed, and do not reflect past or current performance. Any report of past performance is no guarantee of any future performance. As with any investment, an investment in the Company is subject to risks, some of which could be substantial. No investment should be made in the Company by any investor who cannot afford to lose their entire investment. There are also restrictions on re-sale of Company securities and no investment should be made by any investor who cannot afford to hold the investment in the Company for a long period of time. This investment is only allowed and suitable for certain kinds of investors, who must have their investment status verified and confirmed in writing. No investment may be made, and no investment will be accepted unless the Company has received and approved the required written verification of each investor’s status.