Aspen I Income Fund is a residential mortgage fund designed to provide current income for investors, along with the potential for capital gains. This secured real estate income Fund purchases and owns a diversified portfolio of income-producing mortgages, purchased at a discount, to produce above market returns. The Fund is secured by residential real estate across the United States.
A key challenge for many investors is finding a passive investment that generates income. Our Fund is a completely passive fund and pays investors in cash on a monthly basis, filling this gap in income investments.
When we purchase a note, we essentially become the bank. So, very simply, our fund works as follows:
1. We receive monthly mortgage payments from our borrowers
2. We pay our investors a preferred return monthly
3. When borrowers refinance or sell their properties, we split the profits with investors
Read our Mortgage Note Case Study to see how this process works with an actual mortgage note owned by this fund.
Preferred returns are 8.5% cash, paid monthly
Fund is lienholder of residential mortgages
Expected yields can be earned with minimal leverage
Portion of earnings are taxed as long-term capital gains
Liquidity program with quarterly NAV calculations
Leading asset manager in note industry
The Fund pays an 8.5% preferred return on a monthly basis after 3 months. Because the mortgages are purchased at a discount, the Fund also generates capital gains when notes are refinanced or the real estate is sold. The bar chart below is shown net of fees and includes both the preferred returns and any capital gains generated. Our Income Fund Deep Dive webinar goes into more details on historical performance and the fund strategy. Register for the webinar.
Aspen I Total Return
Aspen I Shareholder Price Since Inception
This Fund has been operating for 6+ years and has an existing, well diversified portfolio of notes. This Fund is secured by real estate and owns notes in more than 35 states across the U.S. with an emphasis on Midwest markets. This Fund only purchases performing notes to create consistent monthly income. These notes are generally purchased at significant discounts which provides additional capital protection.
Aspen is highly selective in the notes it acquires for this Fund, purchasing only a small percentage of what they evaluate. Prior to purchase, every note is individually underwritten using a proprietary model. Aspen purchases three types of notes: loan modifications, asset-based hard money loans, and seller-financed notes.
To see this strategy in action, read our mortgage note case study.Watch The Webinar
The Fund purchases both long-term and short-term notes. The Fund's strategy is two fold:
Buy & hold cash-flowing, deeply discounted, long-term first and second mortgages for yield and capital gains.
Purchase or originate cash flowing, short-term, hard money loans for yield and liquidity. Excess cash is continually reinvested into new assets.
A: Aspen has been managing note funds since 2013. The Aspen Income Fund was started in 2014 and since then we have never missed a preferred return payment, nor have we lost any investor’s principal investment capital.
A: The minimum investment in Aspen Income Fund is $50,000.
A: The initial lock-up period for this fund is 1 year. After 1-year we provide best-efforts liquidity and allow investors the option to redeem their shares on a quarterly basis with 90 days written notice.
A: Yes, this fund is open-ended, also known as an evergreen fund. We calculate Net Asset Value (NAV) on a quarterly basis and allow investors to subscribe and redeem at the current share price.
A: Upon initial investment, we have a 3-month delay period (in order to deploy capital). Then, investors will receive their preferred returns monthly either by direct deposit (ACH) or by check.
A: Yes, investing in the private fund is completely passive. When investing in a private fund, you are leveraging our management company’s experience in this business and participate in a diversified portfolio. Investors receive their monthly preferred return by either wire or check.
A: On a monthly basis, investors receive their preferred return. Quarterly, we provide capital account statements, investor newsletters, and financial statements. We also always welcome calls from our investors.
A: If you invest, you become a part owner of the fund versus a specific note. Therefore, your capital is diversified across all the notes in the portfolio.
A: Yes, our funds currently only allow accredited investors.
A: Yes, our funds allow investment through qualified retirement money. This must be done through a self-directed IRA or 401K. If you don’t yet have a self-directed account, we can make introductions to several custodians that we have worked with. Additionally, our funds do not generate Unrelated Business Income Tax (UBIT).
A: An individual or an entity can generally qualify as an accredited investor if they meet at least one of the following criteria:
For more information about the requirements of an accredited investor, see this bulletin from the SEC.
I am a CPA and also the Executive Director of Northern Michigan Angel investment group. I have reviewed many investments, and it is a pleasure to see one like Aspen, with its outstanding business model and professional execution with timely updates on its progress.
I am a healthcare marketing executive. I have known Bob Fraser for over 10 years and hold him in the highest regard, and I have been with Aspen from the beginning. I couldn’t be more pleased – the dividends and statements come on time, and the team is always responsive and helpful. I feel like my money is in good hands.
I am a business guy from Canada who owns different companies, one with 500 employees. I like to find great opportunities. I have been with Aspen for about four years. I look for people who have very good business experience and that I can trust. Aspen has provided that for me.
I'm an accounting professor and real estate investor. In the past, I have not had much free time to oversee my portfolio. In early 2014, Bob Fraser contacted me to tell me about Aspen. I am impressed with the Aspen team. I will be investing more funds with Aspen as I liquidate my real estate investments.
I am a retired accountant now farming. I have invested in two of the Aspen funds, investor communications are great, and everything is done with integrity.
The Aspen Income Fund Deep Dive webinar covers many topics about the Aspen Income Fund in great detail, including:
How to generate consistent income passively
Real examples of real estate notes and how they work
How private investments compare to other asset classes
The keys to conservatively underwriting these assets
Why it's better to be the bank
About Aspen's historical track record