California Ethical Real Estate Funding, LLC (CEREF) - Hope for Homeowners

California Ethical Real Estate Funding, LLC is a private real estate investment company specializing in restructuring non-performing whole mortgages and acquiring California residential real estate. Our management team has developed proprietary work-out strategies and a unique investment platform from which Investors can cost-effectively purchase residential real estate on a large scale, receive an attractive return on their investment and help home owners maintain ownership and avoid the expense, inconvenience, and embarrassment of foreclosure or relocation.

CEREF Partners 1, LP (the Fund) is a limited partnership formed by General Partners (founding members) of CEREF.  The Fund is the entity that raises capital and purchases properties. The Fund’s operating activities are managed by CEREF General Partner 1, LLC (the Manager), an entity also formed by the founding members of CEREF.

Not at the moment, however, the Manager does engage in related real estate activities.

As a limited partnership the Fund enjoys the limited liability of a corporation with the pass-through taxation advantages of a partnership, while engaging in the sector benefits of a REIT. Like a corporation, a Limited Partnership is a separate legal entity and therefore offers personal liability protection in that you, as a Limited Partner, cannot lose more money than you invest. However, for tax purposes, earnings are taxed only once, which means potentially larger returns for Limited Partners.

There is no “double taxation” as in a corporate structure in which the corporation first pays tax on its income and then stockholders must pay tax on distributed earnings. Instead, taxes are paid by Limited Partners at their tax bracket, or under their exemption, on moneys received.  As a Limited Partnership the Fund offers Limited Partnership Interests or equity, in the Fund.  As Limited Partners, Investors are owners of the Fund. As owners, they share in the Fund’s returns.

Unlike publicly traded stocks, the Fund’s Limited Partnership Interests are priced at a fixed amount and are intended to remain at the same value for the life of the investment, assuming no loss exceeding gross income.

The Fund purchases California residential properties and mortgage notes at significant discounts to current market value, quickly re-sells the properties, or modifies and arranges the re-financing of the homeowner’s existing mortgage.  This strategy mitigates investment risk, which will primarily be impacted by future property values, interest rates, and general real estate industry trends.

All properties purchased by the Fund will be located in California.

A Limited Partner may withdraw at any time, however, the right to sell Interests and realize a return of capital is available under limited circumstances until the termination of the Fund.  The Fund will use its best efforts to redeem Interests for Limited Partners within 60 days of receiving a written request.   Large withdrawals will generally require longer waiting periods.

Income information is reported on a Schedule K-1, which is sent to Investors in the first quarter of the subsequent year.

Shares are offered exclusively to qualified Investors or investment entities that are California Residents and who meet certain minimum standards of income and/or net worth.

Yes. Most retirement plans offer a variety of stock and bond investment options.  However, realty investments are largely nonexistent in most defined contribution plans.  The Fund’s potential high rate of return, stable levels of risk and low correlation with the returns of stocks and bonds, offer significant diversification benefits to a multi-asset portfolio. Fund partnership interests can be purchased through self-directed retirement accounts and pension plans.

The minimum investment amount is $100,000 although the Manager has the right to accept a smaller investment.

The Fund may pay a portion of your investment to outside salespersons.  No commissions will be paid to Management.

For more information, please call us toll-free at (800) 750-5363, ext. 140 or use our contact form to send us an email.  We are always available to meet with you and answer any questions you may have regarding California Ethical Real Estate Funding, LLC.