FIXED INCOME
SECURED BY REAL ESTATE

The Socotra Fund

The Socotra Fund, LLC focuses on cash flow through first deeds of trust on properties with a significant equity hedge. Structured much like a mutual fund, investor funds are pooled collectively in a portfolio of private money loans. The loans are diversified across numerous locations, property types, and borrowers, mitigating risk and protecting against exposure to regional market downturns. Lantzman Lending’s investment opportunities include stabilizing commercial real estate property, financing fix and flip residential projects, providing funding for quick escrow closures, and cash-out for business needs.

The Socotra Fund presently holds more than $200 million in loans on residential and commercial properties, with a targeted investor yield of 8% to 9%. The Fund does not rely on any type of leverage, providing increased stability and security by ensuring investor returns are not amplified in a downward market cycle. As of November 1, 2019 the Socotra Fund officially established a subsidiary Real Estate Investment Trust (REIT) as the official lender on all of its loans.

Residential loans are primarily comprised of single family residential loans, while commercial loans are a blend of mixed use, multi-tenant, and industrial buildings. The Fund’s managers monitor and advance all property taxes and insurance policies on the portfolio of loans. To ensure the security of the Fund’s investors, the Fund requires the use of independent third-party appraisals to determine property values, in addition to underwriting each borrower’s desired use of funds.

The Socotra Opportunity Fund

The Socotra Opportunity Fund, LLC focuses on capital appreciation and cash flow, primarily through performing and nonperforming first deeds of trust on properties with a significant equity hedge. Structured much like a mutual fund, funds are invested collectively in a portfolio of private money loans, diversified across numerous locations, property types, and borrowers. In select cases, the Opportunity Fund considers equity and second deeds of trust if there is a significant opportunity relative to risk.

Targeted investment opportunities include stabilizing commercial real estate property, financing fix-and-flip residential projects, providing funding for rapid escrow closures, and cash-outs for business needs. The Socotra Opportunity Fund presently holds over $30 million in capital and is designed to take advantage of slightly higher risk investments than the more conservative Socotra Fund. This higher risk tolerance delivers a correspondingly higher yield target of approximately 9% to 10%, compared to the Socotra Fund’s annual yield of 8% to 9%.

Since its inception, the Socotra Opportunity Fund has distributed cash flow every month, due in large part to a careful balancing of long- and short-term goals. Capital appreciation is the Fund’s long-term goal. The short-term goal in this economic cycle is to maintain the Fund’s yield target of 10%, while maintaining an LTV target of less than 50%. Within the next 36 months, at the beginning of the next anticipated market cycle, the Fund is expected to outperform the market and take advantage of premium opportunities, purchasing nonperforming notes and properties on the courthouse steps at steep discounts.

As of December 1, 2022 the Opportunity Fund officially established a subsidiary Real Estate Investment Trust (REIT) as the official lender on all of its loans.