EP Guardian Fund is a private mortgage fund that specializes in providing real estate investors, property owners, developers, and builders with the capital they need to advance their projects. The Fund is managed by Enact Partners, which started investing in private real estate loans in 2013.
Through the Fund, accredited investors can invest in a diversified portfolio of short-term loans secured by commercial real estate, non-owner occupied residential, construction, fix and flip, mixed-use, and similar investment properties without the responsibility and stress of managing real estate assets.
Doing Well While Doing Good
Our investors come from a variety of backgrounds and life experiences, including retired individuals, couples, and businesspeople. They seek sound investment vehicles focused on asset protection and growth through consistent monthly cash flow.
However, investing in EP Guardian Fund does more than just earn a steady income. It also provides opportunities for businesses and individuals who benefit from the projects financed by the Fund, some of whom are not eligible for traditional bank financing for one reason or another. Here are a few examples:
“Keeping a Roof Over Their Heads”
Faced with a limited window to pay back a $250k reverse mortgage on an inherited home, this borrower and her disabled brother approached Enact Partners to fund a loan on a separate apartment building she owned. She planned to use the money from that loan to pay off the reverse mortgage.
Since the apartment building was in a popular location, fully occupied, in good condition, and had a history of sufficient in-place net operating income to cover the payments on the requested loan, we were able to close in just 14 days.
The borrower paid off the reverse mortgage lender, kept the inherited home, and maintained a roof over her and her brother’s heads.
“Giving an Addiction Rehab Center a Fighting Chance”
In 2017, this borrower purchased a 6,000+ square foot, 5-bedroom, 6.5 bath luxury home on 33 acres. Set in a picturesque desert location in Riverside County, CA, the borrower planned to convert the property into an addiction rehabilitation center.
In 2019, the borrower sought a loan through a bank to refinance existing real estate debt and provide cash-out to pay off a partner.
Although the borrower’s company had a proven track record and this location was very profitable, banks would not lend on the property. They deemed the property’s use to be a mismatch for the property type; they would not loan on rehabilitation facilities; and the property was not in a major metropolitan area. The bank also determined the rehab facility represented a non-conforming use with no Conditional Use Permit (CUP) in place, that obtaining one would be too challenging, and that a baseless cease-and-desist letter from a neighbor threatening legal action represented too much risk.
Enact Partners met the borrower and toured the site. We also hired a land-use consultant to review the zoning and assess hurdles for obtaining the CUP. We reviewed the borrower’s company’s strong financials and successful track record across multiple states, including California. We also considered the worst-case scenario, that the medical use could be rejected and the borrower would have to sell the property under its original use as a luxury home. Comfortable with all of our findings, we closed the loan.
While it’s difficult to know how many people have been or will be helped by this clinic over the years, we can be sure this loan is helping to chip away at the alcohol and substance abuse epidemic, one person at a time.
“People Are Alive Today Because of What We Do”
Following a spike in oil prices, oil production increased and a San Diego County company that designs and manufactures lifeboats for offshore oil rigs received several rush orders for new lifeboats. They needed additional working capital to ramp up production and did not have time to wait for a traditional bank loan. That’s when they approached Enact Partners.
This family-owned company had been in business for more than 50 years with offices all over the globe, had strong financials, and was recognized as an expert in their field.
A sign above the entrance to the company’s headquarters reads, “PEOPLE ARE ALIVE TODAY BECAUSE OF WHAT WE DO!!” That is no hyperbole. The company’s escape pods have rescued more than 2,200 workers in over 60 incidents at sea.
We learned that the owner also owned the company’s headquarters building and industrial production facilities. Using those properties as collateral, Enact Partners was able to fund a loan and deliver the desperately needed cash in just eight days.
We are very proud of this loan, not only because we closed it so quickly, but because of the impressive borrower and how the company used the funds.
Positive Impacts
Investing in EP Guardian Fund not only makes a difference for investor portfolios, but also in the real lives their investments touch.
To explore how the EP Guardian Fund could fit into your investing plans, call us at (760) 516-7776 to discuss. Or take a moment right now and use our online Investor Inquiry Form to send us some information about you. We’ll get back to you within one business day.
