Could funds be mismanaged or squandered?

 

Any fund manager could mismanage or squander funds. Fortunately, this is fairly rare because most managers are seasoned professionals who wish to 1) maintain a solid reputation, 2) avoid legal problems, and 3) secure repeat investors and referrals so that they can do more deals.

 

Mismanagement of this fund is largely prevented by this fund’s structure and strict lending criteria. The only thing that could feasibly be stolen is liquid capital, which typically represents a very small percentage of fund assets. In addition, most of the fund’s cash is only accessible to Doug and two key employees.

 

Fund capital is highly accounted for via our partnership with Cobalt Fund Services, which is an accounting firm that handles bookkeeping and reporting. Another accounting firm, Whitley Penn, conducts an annual audit, which is provided to our investors.

 

In addition, we provide regular emails and reports that show the properties and notes that the fund is lending against.

 

Finally, all fund investors are welcome to stop by our offices during normal business hours to view the checking accounts, loan paperwork, accounting reports and more.

 

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