Are you looking for a way to build wealth through real estate in the beautiful state of Oregon?
Cetan Opportunity Fund could be just what you’re looking for. This real estate debt fund, launched in 2023, offers a rewarding opportunity for investors to invest in real estate projects in Oregon and SW Washington. This Fund is managed by experienced lending professionals, real estate developers, and fund managers with a proven track record and deep knowledge of the local market.
Read on to learn what sets this investment opportunity apart from the rest, how our experience comes into play, and if it’s a good fit for your portfolio.
What Sets Cetan Opportunity Fund Apart
When it comes time to consider investing in real estate, there are plenty of opportunities out there. Finding the right fit for your investment portfolio can be the tricky part. As an investor, you want to get the most bang for your buck and mitigate risks with a team you can trust. Cetan Opportunity Fund could check those boxes for you.
This real estate debt fund pools together investor capital to fund short-term, business-purpose loans secured by real estate in Oregon and SW Washington. Our focus is on providing financing for real estate developers, builders, and investors. By investing in Cetan Opportunity Fund, you provide capital that make sound real estate projects possible, helping to bring new homes and commercial properties to life in our community. Oregon is a thriving state that continues to grow. This is a great opportunity to be involved in that growth.
Cetan Opportunity Fund’s sister company, Cetan Funds, originates the loans, which are immediately purchased by the Fund. The loans we make are secured by a deed of trust on the borrower’s real estate, most often in the first position. This security ensures the Fund’s investments are backed by tangible assets, providing a layer of protection and mitigating risk.
Conservative underwriting and in-house management of our loans helps Cetan Opportunity Fund stand out as an attractive investment that can provide solid returns for investors. We mitigate risk through disciplined due diligence of borrowers and the underlying assets. By maintaining a target range of 65-80% loan-to-value in Cetan Opportunity Fund, we ensure a balanced and secure investment portfolio.
How Our Experience is Beneficial in This Fund
Our team has over 60 years of collective experience in lending and real estate development, making us well qualified to make and manage these investments and loans.
Our deep local market knowledge and proven track record of managing risk have historically delivered 8-10% annualized returns to investors in our first fund, Cetan Income Fund, which we launched in 2017. We built on that experience to create Cetan Opportunity Fund, which is ideal for qualified* Oregon investors and has a target return at 8-12%.
Since its launch in 2023, Cetan Opportunity Fund has continued to hit our target by delivering appealing returns and providing an attractive real estate investment opportunity for Oregonians.
Who Can Invest in It?
Cetan Opportunity Fund is open to all qualified* Oregon residents. This means that both accredited and non-accredited investors in Oregon can take advantage of this unique opportunity to grow their wealth. Investing in this fund is an excellent diversification strategy for Oregonians seeking to strengthen their portfolio.
What Investors Get Out of It
By investing in Cetan Opportunity Fund, you get to invest in loans made by experienced principals with deep local market knowledge, a steady and seasoned hand, and a proven track record. We’re familiar with the industry and the state and we use that to your advantage.
Investors in the Fund have direct access to principals and can discuss and review the loan portfolio at any time. We operate with a culture of honesty and transparency, including published financial statements, quarterly updates and reports, and third-party financial audits distributed to all investors.
Returns are distributed to investors every quarter, and investors can opt for automatic reinvestment to take advantage of compounding. But most of all, investors get the opportunity to invest in real estate while helping Oregon grow.
Why invest in Oregon?
Oregon’s real estate market is driven by strong economic trends and high demand for housing. With an increasingly robust population and economic growth, Oregon faces a significant housing supply deficiency. This state is a beautiful place to live or vacation and people are continuing to flock to the scenic environment that Oregon provides. Investing in Oregon real estate through Cetan Opportunity Fund allows you to capitalize on these positive economic fundamentals.
Cetan Opportunity Fund offers an attractive investment opportunity for Oregonians looking to diversify their portfolios and support local real estate projects. With our extensive experience, conservative management approach, and deep understanding of the Oregon market, we are well-positioned to help you build wealth through real estate.
Ready to strengthen your portfolio with Cetan Opportunity Fund? Contact us today to learn more about how you can get started.
*Cetan Opportunity Fund investors must be 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.
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.
Cetan Income Fund also includes a promissory note offering for accredited investors, which many of our IRA investors benefit from.
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 Income Fund also offers 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. Cetan Opportunity Fund, on the other hand, was recently launched in 2023 and does not currently use leverage or offer promissory notes to investors. 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. Promissory Note investments in Cetan Income Fund generate interest income, so this income is reported on a 1099 INT statement.
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.