funding a nice new home is now possible with Cetan Funds


Cetan Income Fund is a private real estate debt fund that generates attractive returns providing quarterly dividends to an investor by funding short-term, business purpose real estate secured loans in Oregon.

Investing in Cetan Income Fund is an excellent diversification strategy for investors hoping to strengthen their portfolio. We have over 60 years of combined experience in lending and real estate development and have a proven track record of managing risk and delivering 8-10% annualized returns to investors. 

Unlike other real estate investments, no one investor finances a specific real estate secured loan. Instead, our investors pool their money in the Fund and the Fund purchases all of the loans we make, giving our investors investment exposure to every loan within the portfolio. Our team works closely with our borrowers to help their project succeed. Our focus on diversification and our hands-on approach with borrowers both work to mitigate risks and provide a greater return on investment for all investors.


The right real estate debt fund can bring substantial returns. Through the Cetan Income Fund, investors experience the following benefits when they partner with our team:

Deep Local Market Knowledge


Our principals have decades of experience in regional and community banking, real estate development, and relationship building in Oregon. We know the market well and are uniquely qualified to vet potential loans and manage the fund.

Real Estate Secured Loans


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

Conservative Management


Investor credit risk is mitigated through a variety of tactics, including disciplined due diligence of borrowers and underlying assets, no permanent external leverage in the Fund, a target range of 60-75% loan-to-value, and a pooled fund approach whereby an investor’s risk is spread over the entire portfolio and not just one loan.

Strong Economic Trends


Our investment strategy benefits from multi-year positive economic fundamentals in Western, Southern and Central Oregon, driving high demand for residential housing improvements, commercial rehab and new construction, and land development. A decade of strong population and economic growth are factors that has impacted Oregon’s housing supply deficiency.

Successful Track Record


Our real estate debt fund has consistently delivered 8-10% annualized returns to investors (net of all fees). As of Q3 2022, the average annualized return is 8.86% since inception.

Cetan Income Fund Average Annual Returns Q4 2022

For more information:

Cetan funds makes the process simple for our investors



Investors seeking stable income or growth from a relatively low risk profile real estate related investment may purchase units in the Fund.


Promissory Note

Investors seeking a fixed-rate return may invest as Note Holders. This is an excellent choice for Self-Directed IRA Investors.

Contact us today to learn more.

Investor FAQs

What is Cetan Income Fund’s Investment Objective?

Cetan Income Fund (the “Fund”) is a real estate debt fund that delivers 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. To learn more, please visit our Meet the Team Page or contact us.

Can Anyone Invest in The Fund?

The Fund is 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.

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, and many IRA investors appreciate the benefits of our Promissory Note offering.

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 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, geographic locations in Oregon, and loan purposes. Our loan types consist of Residential and Commercial loans with subtypes of new construction, rehab, acquisition and development, and 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 below $500,000, so our transactions are small and more resilient given the high demand for affordable housing, when faced with conditions that negatively affect the real estate market.
  3. Generally, our loan-to-value (LTV) ranges are from 60-75%, with a portfolio target of a weighted average LTV at 65% or less. 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. 
  5. Loan terms range from 6 – 36 months with the weighted average asset life in the loan portfolio target of 12 – 15 months.
  6. We use leverage minimally as it is not a permanent funding strategy. The Fund has a bank line of credit that is used to meet temporary liquidity needs but rests it at $0 frequently during the year. We also offer 6 to 36-month Promissory Notes to investors who prefer to loan their money to the Fund rather than invest in equity or wish to have a mix of both. Management limits leverage in the Fund at 20 – 25% of assets under management.
How Are Returns Calculated and Earnings Distributed to Investors?
The Fund fully distributes 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 Fund’s 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 three weeks to close a quarter and distribute the earnings to investors.

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 a superior lending experience. As a result, the Fund’s investors are well-positioned to realize a positive investing experience as well. The Cetan Advantage embodies the following values:

  • Expertise
  • Partnership
  • Efficiency
  • Flexibility
  • Integrity
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. Promissory Note investments generate interest income, so this income is reported on a 1099 INT statement.