Edwin Lichtig

Nov 02, 2017

I have been a Pyatt Broadmark investor for several years now.  Introduced to them via my angel investment group.  As part of the due diligence team, we compiled about a 60 page report on this company. 

I am very pleased with this fund.  I invest only in real estate lending funds.  Like the monthly income and relative safety.  Pyatt is the best of the bunch.

We researched the principals background.  Very solid.  The fund manager is stable both personally and professionally.  The fund has grown from about 50 million to over 300 million.  Many members of our angel investment group became investors.

I have gotten every payment like clockwork.  I even liquidated my entire account (only to re-establish my account shortly therafter) and had no problem getting my funds back (minus a small market value adjustment due to one losing loan).  You never really know about a fund until you ask for a disbursement (especially a big one).

They provide monthly statements (not quarterly).  They provide two funds (Seattle and Denver).  They arrange for an annual meeting of investors (very important - most funds will not do this).  This meeting allows you to meet other investors.

The only concern I have is that the fund will lend on riskier projects (land development loans are possible).  Hence the term of some of the loans is longer tha 12 months.  Nevertheless the LTV max on the riskier loans are lower.

This fund is for income investors.  They are currently making 10% per year.  That will trend down to about 8% per year over time.

I think if you take part of your interest every year let's say 1% and invest in "put" options, you could cushion your losses if/when the real estate market drops again.  Hard to stomach losing the dollars you allocate to buy put options every year knowing that most years the options will expire worthless.

I have had a hard time finding annoterh lending fund that measures up.

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