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 this Capital Allocation Report.

 

2. Hawthorne Land or Hawthorne Interests can pay down a fund loan, thus providing liquidity in the fund’s checking account, which can be distributed. There are usually a few hundred thousand dollars in those accounts or accounts associated with them.

 

3. Hawthorne Interests can sell one or more notes and pay off the fund in the process, thus providing liquidity.

 

4. Hawthorne Interests can borrow from a bank against some of its notes. In doing so, the fund’s loans against those notes will be paid off, thus providing liquidity for the fund.

 

5. Hawthorne Land can sell some of its land for cash or conventionally (not on owner financing) and use those proceeds to pay down a fund loan.

 

6. The fund can increase its cash position by taking on additional capital from a new or existing investor, just as it does on a regular basis.

 

7. Doug or another investor can buy out an investor for the amount that’s due to them.

 

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