How long has Titan Funding been lending in the bridge loan sector?

Titan Funding has been originating real estate bridge loans since 2014.

What fees do I pay as an investor/member in the fund?

The Titan Fund 1 was structured to be an ultra-low-cost fund. This was achieved with a low asset management fee of 1.5% combined with the Manager sharing revenue with the Fund Members.

What fees does the Manager share with the Members?

The Manager of the Fund has completely aligned its interests with the Fund Members by contributing 100% of originations fees, extension fees and exit fees.

Is the 15% IRR target yield a net to the members?

Yes, the 15% IRR target yield is a net to members.

How is the 15% target yield achieved when the avg. interest rate is 11.25%?

Titan Fund 1 utilizes a low-cost warehouse line of credit to supplement fund members capital.

How often does the fund pay distributions?

Fund members receive an annual 7.5% preferred returned which is paid monthly. In addition, members receive 75% of the funds NOI, which is paid quarterly.

What is the lockup period?

The lockup period is one year starting on the date each portion of capital is invested, but requests may be submitted at any time for consideration.

Why does the monthly yield fluctuate?

When origination, extension, and exit fees are collected, they are fully earned on the day they are received, which increases the yield for any particular month and, conversely, when a loan is paid off and the capital is not able to be immediately redeployed into another income-generating transaction, it causes the yield to be reduced.

How long does it take for my capital as an investor to start earning interest?

New Fund Members’ capital is received into a non-interest-bearing holding account called the subscription account. The capital is admitted into the Fund at the next loan closing, which typically occurs every 1-4 weeks.

What comps/valuations are we using when assessing the value of these properties?

Titan uses independent 3rd party appraisers to assist in assessing the value through a sales comp and income approach model.

Can I invest using my IRA or Self-Directed IRA?

Yes, you can invest using your IRA or Self-Directed IRA.

Can I invest if I live in a foreign country?

Yes, you can invest even if you live in a foreign country.

What recourse does a borrower have, if any, in the event of a foreclosure?

Borrowers may file bankruptcy to stall the foreclosure process, but the default interest and late fees continue to accrue until the loan is paid off.

What is the target average loan amount and average term for loans in the Fund?

The target loan amount is $1M-$15M, with a 12-month term.

Do Fund Members have the option to reinvest our distributions instead of taking the cash? If so, does that reinvestment extend my lockup period?

Yes, fund members can reinvest their monthly distributions without extending the lock-up period.

How often are updates provided on the fund performance?

Financial statements showing funded performance will be available each month.

Will the fund be leveraged?

Yes, the fund will utilize a warehouse line of credit.

Who underwrites the transactions?

Titan underwrites and approves all of the transactions internally. The underwriting process is complemented by independent 3rd party services, including valuations, title research, background checks, and cash-flow analysis.

How does Titan source new deals, and what does the current pipeline look like for future deals?

New loans come directly from borrowers, brokers, asset managers, attorneys, and a vast array of networks that Titan has developed over the years.

Do the loans in the Fund have any personal and/or corporate guarantees?

Yes, all loans have personal and/or corporate guarantees. In the rare exception that a guarantee has been removed, the loan to value would be significantly reduced to adjust the risk.