Investor Case Study: H. Family Trust

Jack and his family made their first investment of $100 thousand with Iron Bridge Mortgage Fund in September 2011. They were looking for a fixed income investment that was stable, secure and paid a strong cash flow yield. Over 4 years later, they’ve invested more than $300,000. Jack says, “We appreciate the security of the real estate collateral, and the monthly cash distributions, which we use to travel and to take care of mom. And we’ve gained tremendous respect for—and trust in—Sarah, Gerard and their team.”

“We appreciate the security of the real estate collateral, and the monthly cash distributions, which we use to travel and to take care of mom. And we’ve gained tremendous respect for—and trust in—Sarah, Gerard and their team.”

Before coming to Iron Bridge, our investment plan was to originate and fund our own real estate loans. We joined several private lender organizations, took real estate lending classes and began making loans. It was fun at first when the loans went well, but then we made a loan that went into default. Worse, the borrower misappropriated the funds that were set aside for construction. Long story short, we ran up a large legal bill and finally got the half finished rehab project back after six months. In the end, we were able to minimize our losses by finishing the rehab project ourselves and selling the property. But there were a lot of sleepless nights spent problem solving to get us there. We learned that, if you only make a few loans a year, one bad loan can take all the fun out of it. That’s when we decided to invest in Iron Bridge.

What we appreciate most about Iron Bridge Mortgage Fund is their operational transparency and their experienced management team. The company provides a “Monthly Portfolio Metrics Report” that dissects the loan portfolio in multiple ways, including a detailed analysis of all non-performing loans. The company also provides annual audited financials and traditional “Quarterly Reports,” which include company financials and a management discussion and analysis of quarterly trends. We have full transparency, and sleep well knowing that our investment is being well managed.

I’ve had the pleasure of getting to know Sarah, Gerard and their team over the past four years, and can say with confidence that they understand how to manage risk.

Conclusion

“If you are looking for a passive investment that offers the security of real estate collateral, but also generates a consistent monthly cash flows and can be redeemed after 6 months, then you should consider Iron Bridge Lending.”

Jack’s story is not an uncommon one. Investing in real estate requires a deep understanding of the market, and a watchful eye throughout the borrowing, buying, and rehabbing processes. Entering this industry as an independent moneylender is a risk not worth the potential reward. Our management team alone has over two decades of experience in the real estate foreclosure and pre-foreclosure market, helping to make Iron Bridge Lending the preferred private money partner for some of the most successful real estate investors in the United States.