CETAN INCOME FUND

A private real estate investment fund that generates attractive risk-adjusted returns and stable quarterly distributions using short-term, business purpose real-estate secured loans in Oregon.

WHY INVEST IN CETAN INCOME FUND?

Deep Local Market Knowledge

  • The Principals have decades of experience in regional and community banking, real estate development, and relationship building in Western Oregon. Each knows the local market well and is uniquely qualified to vet potential loans and manage the fund.

Conservative Lending Approach

  • Investor credit risk is mitigated through a variety of tactics including disciplined due diligence of borrowers and underlying assets, no permanent external leverage on the Fund, a target LTV of 65% or less, and a pooled fund approach whereby an investor's risk is spread over the entire portfolio and not just one loan.

Real Estate Secured Loans

  • Loans are secured by a deed of trust on the borrower’s real estate, most often in the first position.

Strong Regional Economic Trends

Successful Track Record

  • The fund has consistently delivered 8-10% annualized returns to investors (net of all fees). As of Q2 2020, average annualized return since inception is 8.97%.
Annualized Investor Returns

TWO INVESTMENT OPTIONS

Membership Units

Investors seeking the maximum rate of return may purchase subscription units

Secured Notes

Investors seeking superior fixed-rate returns may invest as Note Holders

Contact Investor Relations to learn more about the Fund:

Investor FAQ

What is the Cetan Income Fund investment objective?

The fund aims to achieve high-yield growth for moderately aggressive income investors who seek preservation of capital in the face of inflation.

Who manages Cetan Income Fund?

Cetan Management, LLC is the Manager of Cetan Income Fund (the “Fund”). It is an affiliate owned by the Principals of the Fund, Mary Merriman, Steven Yett and David Yett. Meet our team

Who is the Cetan Income Fund Administrator?

Cetan Management has selected Redwood Real Estate Administrator to be the independent third-party Fund administrator. They are a trusted administrator to over 100 investment funds and provide fund administrative services such as investor reporting and accounting.

Can anyone invest in the Cetan Income Fund?

The Fund is open to accredited investors with net worth in excess of $1,000,000 or past and anticipated annual income in excess of $200,000.

Can I invest with IRA funds?

Yes. Investors can 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 balances with Cetan Income Fund?

Cetan Income Fund is a modern financial services company. We provide investors a secure online investor portal to check account statements, evaluate performance, and download documents and tax statements across all desktop, tablet and smartphone devices.

How does Cetan Management manage risk?

Risk is managed in several ways.

  1. Management maintains a diversified portfolio of loan types (construction, term, land acquisition and development).
  2. We use conservative loan-to-value (LTV) ratios. As of Q3 2019, the average weighted LTV of the Fund's was 62%.
  3. Loans are typically secured with first position liens.
  4. Management focuses on short term loans. The average weighted loan term as of Q3 2019 was 11.3 months.
  5. We are a pooled fund. Each investor has fractional ownership of all the loans rather than being attached to just one. This balances the risk across the loan portfolio.
  6. We use leverage minimally. The Fund has a bank line of credit but rests it at $0 frequently during the year. We offer Notes in the fund but as of Q3 2019, they are below 20% of AUM.
What is Cetan Income Fund’s earnings distribution schedule?

Investors receive quarterly distributions from the onset of their subscription. Distributions are calculated and paid quarterly which can be sent to the investor or reinvested in the investor’s fund units.

Why don’t small real estate developers and residential investors go to banks for loans instead?

A consequence of the Great Recession of 2008-2009 was tightening of the access to credit, particularly for small development projects. The typical borrower is creditworthy; however, the loan type they are seeking is not available to them at traditional lenders. Cetan Funds addresses this credit and service void in the marketplace.

What distinguishes Cetan Funds from other non-traditional lenders?

The Cetan Funds Advantage sets us apart. It provides borrowers a superior lending experience.  As a result, Cetan Income Funds investors are well-positioned to realize a superior investing experience as well.