When you review a fund, consider the following questions:
- What is the experience and performance history of the fund manager with similar funds?
- Can the fund raise equity from financially substantial investors?
- What is the performance of the fund?
- What is the leverage level of the fund?
- What is the net worth and liquidity of the fund?
- What is the type and quality of
- the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). and market,
- other existing properties and markets, and
- any potential additional properties and markets targeted by the fund pursuant to its agreements?
Additionally, you should review the organizational documents and private placement memorandum (if applicable) for the following information:
- the fund’s expiration date;
- any extension to the fund’s existence and conditions to approve that extension; and
- the process for winding up the business affairs of the fund, including whether the fund is organized in a state that requires the orderly dissolution of investment funds, such as Delaware or Illinois.