Montegra Capital Income Fund

Montegra Capital Income Fund

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Montegra Capital Income Fund: Providing Secure Financing for Real Estate Investments

Montegra Capital Income Fund, L.P. (the Fund) provides financing for short term, first mortgage secured loans on commercial and investment purpose residential real estate located in Colorado and the Rocky Mountain region at conservative loan to value ratios. The Fund is a Limited Partnership which has filed with the SEC under Regulation D Rule 506. It has also filed a Regulation D filing in every state where an investor in the Fund resides. The Fund is managed by its General Partner, Trail Ridge Partners, LLC, a Colorado Limited Liability Company.

Details & History

Money invested in the Fund is used by the Fund to invest in trust deeds (i.e. making loans on commercial real estate).  The same investment strategy is used by large investors such as life insurance companies.  Life companies typically invest a significant part of their portfolio in commercial real estate secured loans.  They employ highly qualified real estate analysts to assist them in underwriting these loans.  Because they fund large numbers of these loans they are able to create a diversified portfolio of commercial loans at yields which are attractive to them.

Montegra Capital Income Fund, L.P. began operations June 1, 2009.  Its purpose is to offer the benefits of trust deed investing to Accredited Investors while reducing some of the barriers to entry by individual investors such as: need for prior real estate experience, lack of ready access to legal advice, lack of time to manage trust deed investments and lack of sufficient capital to invest in a diversified portfolio of trust deed secured loans.  The minimum investment in the Fund if $100,000.  Any investor in the fund must meet the SEC requirements for an Accredited Investor.

Our Fund consists of a non-leveraged portfolio of first mortgage secured real estate loans with maturities of one to two years.  In certain cases options to extend the loan by one or two additional years may be offered to borrower.  All loans in the Fund’s portfolio are underwritten with rigorous due diligence and draw on more than 80 combined years of underwriting experience of the three individuals who make up the Fund’s management.  The Fund strives to provide its investors both capital preservation and attractive regular monthly income payments generated by its diversified loan portfolio.

The Fund only makes first mortgage secured loans, never second priority loans.  It is  unleveraged and as such may accept a self-directed IRA as an investor.  We require a formal appraisal on all loans over $1,000,000.  In select cases the Fund may elect to use a Broker’s Opinion of Value for valuation purposes on loans of less than $1,000,000.  The Fund typically does not make loans that exceed a 65% ratio between loan principal to appraised value (LTV).  This conservative LTV, which is lower than what is typically offered by banks and life insurance companies, is used by our Fund to manage risk of loss in the event of a foreclosure.  The Fund’s primary lending focus is on commercial real estate properties in the metro Denver area.  It will consider, on a case by case basis, loans secured by first mortgages on investment-purpose residential property.  The Fund currently holds loans secured by such properties in the mountain towns of Aspen, Vail, and Crested Butte.

Fund Advantages

  • Diversified portfolio of loans.
  • Management with over 80 years of experience in funding private capital real estate loans.
  • Limited partners receive monthly income distributions and portfolio updates.
  • Self-directed IRA investments permitted.
  • Non-leveraged and therefore not subject to UBTI.
  • Loan-to-value on loans placed into Fund’s portfolio typically does not exceed 65% of appraised value of properties secured by first position deeds of trust.
  • The Fund has a 9 year performance history.
  • The Fund is subjected to a full CPA audit on an annual basis.
  • Schedule K-1’s typically distributed to Limited Partners prior to the end of February.