Category 1 – Hawthorne Capital

How is fund capital currently allocated?

We strive for full transparency and are happy to provide this Capital Allocation Report. You will find asset values, collateral values, links to filed documents, property maps, and more. Watch this video for an explanation of the report. The video will help you to understand not only the report but how we protect […]

Where do the funds come from when I request a return of my capital?

There are several options: 1. The fund typically has a few million dollars that it has taken on but has not yet loaned out. It resides in the fund’s checking account and can be quickly distributed from there. You will find the most recently documented amount at the top of page 2 in […]

How does the process of requesting and receiving a return of my capital work?

You are able to request and receive a return of part or all of your investment should you desire. You can find a detailed explanation of this process in section 4.04 of the Company Agreement. Below is a simple illustration that shows how this works: You have $300K invested in the fund, […]

How do I know the fund is making smart loans?

The fund lends to Hawthorne Land at a maximum of 65% of the projected aggregate sales price of the ranchettes for a relevant property. That is widely considered to be a low loan-to-value (LTV), which is important for reducing risk. Each loan is at 10%, interest only. For each note that Hawthorne Interests […]

Can I review the PPM and legal paperwork for the fund?

You are welcome to view the fund’s legal paperwork by clicking on the links below: Private Placement Memorandum (PPM): This document explains the fund to prospective investors in great detail. Those who review PPMs on a regular basis will find the language to be much softer and more pro-investor than is customary. […]

What is the flow of funds for a typical land deal (2 of 2)

HL sells each ranchette on owner financing. Each time it does, it collects a down payment of approximately $20K and takes back a note for about $230K at 10.9% over 20 years. Upon selling the land and generating the note, HL sells the note to Hawthorne Interests (HI). HL pays off its $125K […]

What is the legal structure of the fund and its borrowers?

Various entities work together to carry out the business of the fund and the land business. These are as follows: Hawthorne Income Fund, LLC is the fund. It is owned by fund investors and is managed by Hawthorne Income Fund Manager, LLC, which is an entity that Doug Smith owns. Hawthorne Land, […]

What are the benefits of investing in the fund?

The fund has 18 benefits that we have been able to identify. Click here for an explanation of each one.

What is the flow of funds for a typical land deal? (1 of 2)

Hawthorne Land (HL) seeks out a new property and places it under contract. In this case, it’s 100 acres of land outside of Houston. The purchase price is $1M, which comes out to $10K per acre. HL’s plan is to subdivide the property into ten 10-acre ranchettes and sell each one for $250K. […]