FOR INVESTORS
CETAN INCOME FUND
A private real estate debt fund that generates attractive risk adjusted annualized returns of 8 - 10% for accredited investors through short-term business purpose loans secured by Oregon real estate.
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
- Our investment strategy benefits from strong multiyear Western Oregon economic fundamentals. A decade of strong population growth is just one factor that has created a limited housing supply and demand for new residential and commercial construction and land development in many communities.
Successful Track Record
- The fund has consistently delivered 8-10% annualized returns to investors (net of all fees). As of Q4 2019, annualized return since inception is 9.2%. The annual return in 2019 was 9.1%.
TWO INVESTMENT OPTIONS
Membership Units
Investors seeking the maximum rate of return may purchase subscription units
Secured Notes
Investors seeking fixed-rate superior returns may invest as Note Holders
Contact Investor Relations to learn more about the Fund:
Recently Funded Projects
Real success stories from recent projects funded by Cetan Funds.
THE WESTERN OREGON REAL ESTATE MARKET:
POSITIVE LONG-TERM TRENDS
Disruptive growth and in-migration have made Oregon one of the most prolific economies in the nation, with state-wide GDP surging past 4 percent in recent years1. The influx of new residents has fueled demand for housing in a market strained by limited inventory. Area home values have appreciated dramatically as a result.
Strong Fundamentals: Oregon
- Oregon GDP growth in 2016 was the second fastest among all 50 states, 3.3% vs 1.5% average nationally. Annual growth over the past 20 years averaged 3.3%, second only to North Dakota at 4.7%.1
- Oregon ranked 2nd in the nation for annual home-price appreciation (10.45%) between Q3-15 and Q3-16, notably stronger than the national average of 6.04%.2
- The Portland metro area was the 8th fastest growing metro area in the US in 2015.
- Deschutes County, home to Bend, tied for the fastest metro area growth in the nation in 2017.
- In Lane County, where Eugene is located and Cetan Funds is based, home values rose by 8 percent in 2016.3
- In 2017, Lane County’s jobless rate was at a 27-year low and average home sale prices continued to set records.4
- Lane County’s unemployment rate dropped to a record-low of 4.4 percent in January 2017.5
- Eugene is forecast to grow at an average annual rate of 1.4% to 154,000 employees by 2031, an increase of 37,000 (32%). The City of Eugene estimates that 8,682 new single-family homes and 6,301 new multi-family units will be needed to accommodate population growth in Eugene over this time.6
- Nike Co-Founder Phil Knight donated $500 million to University of Oregon’s Science Center in Eugene to fund new research facilities and attract scientific talent. This is one of the largest gifts in the USA to a university and will be spent over several years, driving demand for commercial and residential construction.7
Investor FAQ
The fund aims to achieve high-yield growth for moderately aggressive income investors who seek preservation of capital in the face of inflation.
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
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.
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.
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.
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.
Risk is managed in several ways.
- Management maintains a diversified portfolio of loan types (construction, term, land acquisition and development).
- We use conservative loan-to-value (LTV) ratios. As of Q3 2019, the average weighted LTV of the Fund's was 62%.
- Loans are typically secured with first position liens.
- Management focuses on short term loans. The average weighted loan term as of Q3 2019 was 11.3 months.
- 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.
- 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.
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.
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.
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.