THE FUND
BaySierra Mortgage Fund, LLC (the “Fund") is a California Limited Liability Company formed for the purpose of making or investing in loans secured by deeds of trust on commercial and residential real estate or land located in California. The Units offered hereby represent membership interests in the Fund. (Click here for the Fund Prospectus)
Fund loans will be secured by commercial properties and residential real estate or land (improved or unimproved), all of which will be located in California. Loans will be made while this offering is continuing. (See “Lending Standards and Policies.”)
The manager provides annual CPA audited financial reports on the Fund for the investors as well as quarterly un-audited financial reports. Monthly fact sheets on the Fund’s performance are also available.
Fund Objectives
BaySierra Mortgage Fund, LLC (the “Fund") is a California limited liability company formed for the purpose of making or investing in loans secured by deeds of trust on commercial and residential real estate or land (improved or unimproved) located in California. The Units offered hereby represent membership interests in the Fund.
Capitalization
Minimum of $500,000 and a maximum of $40,000,000 (subject to increase by the Manager).
Term of the Fund
Indefinite. (See “Summary of Operating Agreement – Term of the Fund.”)
Manager, Mortgage Broker and Loan Servicer
BaySierra Financial, Inc.
1410 Neotomas Avenue, Suite 106
Santa Rosa, California 95405,
(707) 544-5696
Prior Experience
The Manager has substantial prior experience in the mortgage industry. (See “The Manager and its Affiliates.”)
Compensation to Manager and Its Affiliates
The Manager will receive substantial fees. (See “Compensation to Manager and Its Affiliates.”)
Suitability Standards
Units are offered exclusively to investors who are California residents and who meet certain minimum standards of income and/or net worth, with a minimum investment of $25,000. Qualified investors admitted to the Fund will become Members. (See “Investor Suitability Standards.”)
Mortgage Loan Portfolio
Fund loans will be secured by residential real estate (both owner-occupied and non-owner occupied) and commercial properties or land (improved or unimproved), all of which will be located in California. Loans will be made while this offering is continuing. (See “Lending Standards and Policies.”)
Leveraging the Portfolio
The Fund may borrow funds from a third party lender in order to fund some mortgage loans made or purchased by the Fund or to create greater liquidity for the Fund. In such cases, most or all of the Fund’s loan portfolio will be assigned to this lender as security for the loan(s). In borrowing these funds, the Fund may increase the yield to the Fund or create greater liquidity; however, leveraging the Fund’s portfolio entails certain additional risks and also entails possible adverse tax consequences. The Manager has no present intention to leverage the Fund’s portfolio of loans; however, the Manager may, in the future, leverage the Funds portfolio if the Manager believes such leverage is needed to improve the Fund’s liquidity. (See “Leveraging the Portfolio” and “Risk Factors - Risk of Leverage.”)
Cash Distributions
Income is calculated and paid monthly. Investor has choice of (1) regular monthly cash distributions of Fund income, or (2) income credited to capital account and reinvested by the Fund. An investor may elect to switch from one of these options to the other only upon ninety (90) days notice to the Manager; provided, however, that investors may elect to switch from distributions to compounding only if there is then in effect a permit issued by the California Department of Corporations for this offering. The Manager, in its sole and absolute discretion, reserves the right to commence making cash distributions at any time to previously compounding ERISA investors in order for the Fund to remain exempt from the ERISA plan asset regulations. (See “ERISA Considerations” and “Summary of Operating Agreement.”)
Withdrawal
No withdrawal for twelve (12) months after initial investment; thereafter, investors have a limited right to withdraw from the Fund. (See “Summary of Operating Agreement -- Withdrawal from Fund.”)
Restrictions on Transfers
There are substantial restrictions on transferability of Units under federal and state securities laws and under the Operating Agreement. (See “Terms of Offering -- Restrictions on Transfer” and “Risks and Other Important Factors -- No Market for Units.”)
Liquidity
There is no public market for Units and none is expected to develop in the foreseeable future. The transferability of Units is also restricted by federal and state securities laws, and by the Operating Agreement. (See “Risks and Other Important Factors - No Market for Units.”)
Reports to Investors
Annual reports, including audited financial statements.
Risks
An investment in Units is subject to certain risks which should be carefully evaluated before an investment in Units is made. (See “Risks and Other Important Factors.”)
California Residents Only
Units will be offered and sold only to residents of the State of California.