When you’re making a plan for your next real estate project and considering a hard money loan, we hope Cetan Funds is at the top of your list.
The principles we adhere to make us stand out as a private lending option. We call this the Cetan Advantage. By delivering on these five tenets, we ensure our clients have a positive experience throughout their real estate project. We believe that’s why clients return to us again and again for their real estate investing needs.
Our goal is to develop long-term relationships with our clients and that starts with trust. So, let’s take a look at the Cetan Advantage and the benefits you’ll discover when working with Cetan Funds. See for yourself why working with Cetan Funds may well be the best financial decision you can make when looking for a private lender for your next real estate project.
Expertise
Our expertise stands out among private lenders. We have over 60 years of combined lending and real estate experience in Oregon, giving us a unique perspective on all the ins and outs of real estate investing, development, and financing.
With this kind of knowledge, we can craft a loan custom-tailored for your financial needs, while also supporting you in a variety of ways during the project with ongoing advice and counsel. In this way, we often fill the role of a “financial business partner.”
With the experience we have with real estate investors and loan processes, we can offer you help when you need it, with information and guidance to help you succeed. This can be particularly helpful if this is your first real estate investment or you’re branching out into a new type of project.
For example, if you’ve typically only done fix and flips but now want to try a new build, we can help you navigate that process including reviewing common loan terms, construction budgeting and draw management, and frequent obstacles homebuilders run into.
Partnership
When you partner with us for your real estate loan, you’ll find a company that is not only experienced, but also has the ability to think creatively and be responsive.
We look for the best ways to get you what you need for your particular project and situation because we know that every project is different and needs our personal attention in unique ways.
We strive to be someone you can count on for a long-term partnership across multiple projects. As our partnership grows and we get to know you, we can learn how to best meet your individual needs and preferences as you continue to build your real estate portfolio. Many of our clients come to us for all of their real estate projects because they know we’re the ones they can count on for fast, reliable funding.
Efficiency
We pride ourselves on being fast, responsive and efficient here at Cetan Funds. We do fast in-house valuations and loan underwriting, often reaching a lending decision in 2-3 days, and sometimes sooner. We can then fund quickly, often as fast as 3-5 days. When you have a project in the works, we know that getting a loan in a timely fashion is of great importance.
Fast, accurate service, with prompt response times and getting the answers you need as quickly as possible is the kind of efficiency that you’ll find with the Cetan Advantage.
This efficiency can be crucial for our clients working on time-sensitive projects like fix and flips. When a home comes on the market for a great price, they often want to be the first to put in an offer and get the ball rolling. We’re able to help them get the property under contract, close on time, and then make sure their project goes swiftly and smoothly so they can rehab the home and flip it for a profit.
Flexibility
Real estate investing is never a “one size fits all” situation, so we’re proud of our ability to adapt and provide loan terms to fit your individual needs. With our knowledge and experience in real estate, we can look at all of the possibilities and work out the one that’s best for you.
Our position as a direct portfolio lender with our own internal managed funds, gives us the flexibility with underwriting that most other brokers and lenders simply cannot achieve when brokering or selling loans to outside investors.
We know that flexibility is key in finding the right loan that will meet your needs and we’re able to customize your loan to your individual project.
If you’re an experienced investor with capital on-hand and would like a loan designed to minimize your down payment, we can probably help with that. If you are seeking the lowest upfront fees on a very short-term project, we can work with that too.
Every situation and every borrower is different, and we’re more than happy to explore options. By keeping up with both current trends and long established methods, we can be flexible to ensure a smooth and profitable path to helping you build wealth through real estate.
Integrity
And of course, one of the most important principles to the Cetan Advantage is integrity. Our transparency and fairness is one of our greatest values in dealing with our clients.
You matter to us and we’ll always be looking out for your best interests. We want you to know that we are a partner that you can trust.
As a private lender of real estate loans, nothing could be more important to us than having integrity in all of our business partnerships. Unfortunately, hard money lenders have often created a bad reputation for themselves, and private lending can often feel like the “Wild West” with a wide range of what lenders consider “ethical” practices.
Here at Cetan, we’re different. We’re with you every step of the way to ensure mutual success and will always be fair, honest, and transparent.
At Cetan Funds, we are committed to your success in the real estate industry and forming a reliable, long-term partnership for your short-term real estate financing needs.
With the Cetan Advantage you get an experienced, efficient, flexible financial partner valuing integrity above all. We’d love to become your preferred private money lender for all of your real estate investing needs.
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.