The Grace Fund, LLC, is a $20 million Direct Participation Mortgage Program (a “mortgage pool” of capital funded by the contributions of many investors), headquartered in Cooper City, Florida. It was formed to provide Grace Realty Group, Inc. and its affiliates with acquisition and renovation capital for commercial real estate turnaround properties. Grace Fund capital is secured by mortgages on these properties, which include shopping centers, office buildings, warehouses and other real estate.
Grace Realty Group’s business model is straightforward. To qualify for acquisition, properties must have significant upgrading possibilities, a sound superstructure and superior location in a strong, growing rental market area. Grace Realty Group recycles these properties, saving them from the wrecking ball by giving them an ecologically friendly (“green”) refurbishing facelift, thereby significantly increasing market value and extending their useful life by decades. The new look also contributes to the economic health and aesthetic appeal of a property’s market area.
The Grace Fund is especially appealing to investors who take comfort in having their investment dollars working responsibly while seeking safety, high monthly income, low management fees and diversification within their investment portfolios. The Grace Fund’s experienced management team is readily available to its investors and watches out for each of their interests while helping them reach their financial goals.
General Fund Information
All Grace Fund investors must be Accredited.
100% of investment goes into the Fund.
Investors’ monthly distribution rate of return has been at least 15%, on an annualized basis, since the Fund’s inception.
Distributions can be received monthly, reinvested or a combination thereof. Investors receive a monthly Statement of Account.
Minimum investment is $20,000. Additional investments may be made in any amount.
IRA’s and other qualified plans may be used for investment. The Fund is administratively qualified by several national trust companies with a Self-Directed IRA Program for your investment needs.
Fund investors receive newsletters featuring general interest articles, upcoming events, market information and updates on Grace Fund financed redevelopment projects.
Grace Fund’s Investment Criteria
Each loan that is added to the Fund’s pool meets the necessary guidelines designed to mitigate as much risk as possible, while maintaining high yields. They include:
Sufficient equity in collateral property. Loan-to-value is limited to a maximum of 75% of the property’s value
Appraisals and independent value confirmation
Loans are short term, ranging from twelve to 36 months with no prepayment penalty
Collateral is well located commercial real estate having a large equity cushion and upside potential
All loans are underwritten at 15.5% interest
Title insurance to protect the Fund’s position and the investors’ money
Hazard, wind and flood insurance to protect the Fund from property loss due to fire and natural disasters
THE INFORMATION IN THIS EXECUTIVE SUMMARY DOES NOT CONSTITUTE AN OFFER AND IS AUTHORIZED FOR USE ONLY WHEN ACCOMPANIED OR PRECEDED BY THE GRACE FUND PRIVATE PLACEMENT MEMORANDUM. THE INFORMATION SET FORTH HEREIN IS QUALIFIED IN ITS ENTIRETY BY THE PRIVATE PLACEMENT MEMORANDUM AND ITS SUPPLEMENTS.
Grace Fund Management Services, Inc 10086 Griffin Road Cooper City, FL 33328 Tel: (954) 252-7595 • Fax: (954) 252-7576
