The Secured Income Fund was strategically built out by our CEO Ryan Garland in order to provide investors with current income in the form or regular, stable cash distributions at an attractive risk-adjusted yield to preserve and protect invested capital.
The fund was structured to provide debt loans for new construction or property and renovation, as well as other interests in real estate; all secured by first trust deeds. Paradyme will consider other interests in real estate if such assets could benefit from leveraging Paradyme’s operating platform.
WHAT LED US TO THIS EXCEPTIONAL OPPORTUNITY?
Due to the rate at which homeowners and other borrowers have sought debt relief from Covid-19, and how it has caused a shortage of lending sources across the real-estate industry, institutional lending has become much harder to obtain. JP Morgan Chase, Bank of America, Citigroup and Wells Fargo reported at least $151.5 Billion in loans with payments in deferral. As a result, these banks set aside more than $32 Billion for loan losses in the second quarter, according to Stephen Lubbers for Bloomberg L.P. As banks must contend with tighter regulations and lending practices, Private Debt is more important than ever for LP portfolios and especially for private companies.cked back to the market.” -Rick Beckwitt, CEO of homebuilding giant Lennar.
Demand for housing in California is high while the supply of existing homes for sale is low. California requires between 1.8 million and 3.5 million new homes by 2025, according to the Orange County Register Housing Report. Further, according to California Association of Realtors (C.A.R) while home ownership is increasing, the rental market is poised to boom alongside it. Deal flow will be robust nationally, but particularly in California and the Southwest due to strong demand for housing and current lack of supply.
Due to the large disparity between supply and demand, PARADYME expects residential construction of all kinds, but especially in the middle market to be robust. Therefore, the demand for financing is expected to intensify. However, due to the rate at which homeowners and other borrowers have sought debt relief, and the specter of bad debt that has created, institutional lending has become much harder to obtain. There is substantial opportunity for private debt providers such as PARADYME to step into the current gap between the need for financing and the availability of financing.
Portfolio Asset Overview
Southwest Region, targeting secondary markets.
As banks must contend with tighter regulations and lending practices, Private Debt is more important than ever for LP portfolios and especially for private companies.
$150,000 to $10 million
The Fund’s primary strategy is to provide debt loans: Private, Commercial, Residential.
Deal flow will be robust nationally, but particularly in California and the Southwest due to strong demand for housing and current lack of supply.