I am pleased to provide this public edition of the 3rd quarter 2017 investor report for the LYNK Capital fund. This edition provides and overview of the LYNK capital fund for the 3rd quarter and for those investors already invested in the LYNK fund, please refer to the internal investor report for the 3rd quarter 2017.
About the Fund
LYNK Capital, LLC is a private equity fund that offers consistent, attractive returns to smart investors who are looking to build wealth, gain exposure to real estate assets, and diversify away from the volatility of the stock market. Currently, the fund is focused in making first mortgage loans for renovation and construction loans in nine states consisting of four different loan products. The geographic footprint and loan program diversity creates a mitigation to certain risk concentrations. The charts below outlines the fund’s portfolio by state and loan product type.
The fund began in the fall of 2013 consisting of equity from the Fund Managers and through its REG D 506C offering and support from many investors along with leveraging debt, the fund has grown to over 70 Million in assets under management and has produced consistent and attractive returns in excess of 10% annually.
3rd Quarter by the numbers
The fund began the quarter with 93 assets totaling $57,047,099 and added 26 new loans for $4,801,433, and received 11 loan payoffs totaling $2,233,000 for a net increase of 15 loans ending the quarter with 108 assets under management. The increase in assets under management produced an 8.42% increase for the quarter; ending the quarter with $61,848,532 in total assets. The new loan assets comprised of 19 single family, 6 multi-family and 1 commercial loan. The funds equity in the quarter grew by $2,531,539 taking the fund’s total equity to $32,534,429 for an increase of 8.33 %.
|LYNK CAPITAL 2017 Q3 PRODUCTION|
|Transactions paid off||11|
|Dollar amount funded||$4,801,433|
|Growth in equity||$2,531,539|
Third Quarter Featured Loan
The borrower will use loan funds to renovate a single-family residence in a semi-urban neighborhood of Wasking ton DC. The property was acquired in a bank REO sale for $210,000. The borrower will complete approximately $100,000 of renovations, at which time the property is expected to be worth $410,000. The appraisal supports strong demand in the local market, with average market times of less than ninety days. This is the borrower’s second deal with LYNK.
Note Amount: $289,000
LTV at Completion is 70%
No major changes are projected for the LYNK fund in Q4, 2017. Loan demand continues to be prevalent and our fund remains very relevant in the lending marketplace. Slow steady asset growth is expected to continue for the next year. No major change is projected for investor yields for the next few quarters with priority centered on the reduction in LYNK owned assets and replacing higher costing debt with lower costing debt as the key to driving the higher yields we have projected for our investors. Our business strategy puts priority to proper controls with managing the loan assets over new asset growth, however, as with all successful businesses growing and improving should remain a component of the planned future.
On behalf of the entire management team at LYNK Capital, we thank you for your trust and look forward to a successful and profitable future together.
LYNK Capital, LLC
(To view a PDF version of this report, click here.)
LYNK Capital, LLC is open to Accredited Investors only. In purchasing securities through a 506(c) Offering, the Company (“LYNK Capital, LLC”) is obligated to verify any participating investor’s status as an accredited investor in accordance with Rule 501 of Regulation D Investor Verification Standards and Protocols. Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. This and other information are contained in the Fund’s Private Placement Memorandum dated August 1, 2014, which may be obtained by contacting LYNK Capital, LLC. Please read the Private Placement Memorandum carefully before you invest. A word about risk: Past performance is not a guarantee or a reliable indicator of future results. All investments contain risk and may lose value. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements regarding future events and/or the future performance of the Fund are subject to certain risks and uncertainties that could cause actual events or the actual future results of LYNK Capital, LLC to differ materially from such forward-looking statements. Any historical performance data contained herein represents past performance and does not guarantee future results; current and future performance may be different than the performance data presented. LYNK Capital, LLC is not required to follow any standard methodology when presenting performance data and its performance may not be directly comparable to the performance of other similar funds.