$100M Secured Income Fund
The Paradyme Income Fund presents accredited investors with a compelling opportunity to diversify their portfolios through a range of secured income-generating assets. Focusing on short-term loans and value-add prospects, the fund offers stability and attractive returns while maintaining a strong emphasis on capital preservation.
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Investment Strategy
The Fund’s primary investment strategy involves directly originating first deeds of trust or mortgage loans on middle-market, value-add, and transitional properties in the United States, focusing on California and underserved residential markets in the Southwestern secondary and tertiary regions.
Typically, loans will provide borrowers with debt financing up to (i) 80% of the property's purchase price or current fair market value, whichever is lower, or (ii) 65% of the property's post-repair or post-construction value (not exceeding 80% loan-to-cost) for value-add or transitional properties.
Given the significant gap between housing supply and demand, especially in the middle market, Paradyme anticipates robust residential construction activity. Consequently, the demand for financing is expected to intensify. However, obtaining institutional lending has become more challenging due to increased debt relief requests and concerns over potential bad debt.
Key Investment Details
- Loan Amounts: $150K - $10M
- Capital Raise: $100 Million
- Minimum Investment: $100,000
- Loan Duration: 1-3 Years
- Current Preferred Return Distribution: 10% p.a. Paid Quarterly
Investment Types
- Fix & Flip Loans
Short-term loans provided to renovate and resell single-family homes, allowing borrowers to capitalize on property value improvements. - Ground-Up Construction Loans
Loans for the development of new construction projects, offering capital for the building process from start to finish. - Bridge Loans
Short-term loans designed to bridge the gap for real estate investors, helping them secure properties before long-term financing is in place. - Secured with First Trust Deed Liens
All loans are secured with first-priority mortgage liens on the underlying real estate, ensuring added protection for investors.
Investment Process
- Loan Origination
Loans are sourced through Paradyme’s extensive network of regional and national real estate developers, investors, and brokers, ensuring access to prime investment opportunities. - Loan Processing
Our in-house team handles the processing, utilizing third-party vendors for thorough due diligence, including appraisals, environmental checks, and property inspections. - Credit Approval Process
Each loan undergoes a two-step approval process: an initial screening and a comprehensive review of due diligence documents before funding is approved. - Loan Restructuring & Workouts
Our experienced team actively manages distressed loans, restructuring them to minimize defaults and preserve capital, ensuring investor security.
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Projected Returns Calculator
Secured Income, Real Opportunities
The Paradyme Income Fund offers accredited investors a unique opportunity to diversify their capital across secure asset classes, focusing on delivering competitive risk-adjusted returns while prioritizing capital preservation. Our fund strategically invests in value-add loans, short-term bridge loans, and short-term construction loans, all backed by fully secured assets.
Rigorous Due Diligence
We conduct comprehensive due diligence on all potential investments, ensuring that only the highest quality assets are included in the SIF. Our thorough analysis covers local, regional and national market trends, property condition, credit score and overall financial health of the borrower to name a few.
Risk Mitigation
To protect your investment, we employ robust risk management strategies. This includes diversifying our portfolio, maintaining low leverage ratios, selling notes in the secondary market and actively monitoring market conditions to adapt our approach as needed.
Sustainable Growth
We focus on sustainable growth by investing in properties with strong fundamentals and long-term appreciation potential. Our proactive asset management ensures that each property is optimized for performance and value enhancement.
Rigorous Due Diligence
- $500M+ – Recent investment in RV & boat storage, backed by Goldman Sachs, reinforcing market confidence.
- 124 Properties | $556M – RV & boat storage properties sold in 2022, demonstrating strong liquidity and investor demand.
- +18% Growth – Year-over-year increase in RV shipments, driving greater demand for premium storage solutions.
- $1M per Acre – Despite a 50% drop in transaction volume in 2023, land values remain near record highs, proving market resilience.
- $6.8T Wellness Market – Global wellness industry projected to reach $9T by 2028 at a 7.3% CAGR.
Risk Mitigation
- 600+ Acres – New storage facilities added between 2022-23, highlighting rapid industry expansion.
- $80B Projected Market – The RV & boat storage industry is expected to reach $80B by 2035, ensuring long-term investment stability.
- $55B+ RV & Boat Sales Market – RV and boat ownership fueling the need for premium storage solutions.
- 72.9M Gym Members – U.S. fitness facility memberships reached an all-time high in 2023, signaling strong demand for fitness amenities.
- 5.8% Membership Growth – Year-over-year increase in fitness memberships, reflecting the growing focus on health and wellness.
Sustainable Growth
- 1M+ Visitors Annually – Lake Havasu attracts a massive tourism market, driving demand for lifestyle investments.
- 750,000 Sq. Ft. of Retail – Barn Caves is positioned near major shopping, dining, and entertainment centers.
- High Demand for Storage – Chronic shortage of RV and boat storage in Lake Havasu, with over 800 facilities in the U.S. nearing capacity.
- Scarcity of Premium Storage – Growing RV and boat ownership fuels demand for customizable storage solutions.
- Wellness Facility Demand – As the global wellness industry is projected to reach $9 trillion by 2028, the demand for fitness and wellness amenities is growing rapidly.
Data Room
FAQs
Explore our frequently asked questions about this project
The Secured Income Fund (SIF) is an investment vehicle offered by Paradyme Companies that focuses on generating consistent and reliable income through investments in high-quality, income-generating real estate assets. The fund is designed to give investors stable returns and long-term capital appreciation.
The SIF primarily invests in income-generating real estate assets such as single-family fix and flip loans, bridge loans for acquisition, ground-up construction loans, and other high-quality real estate opportunities. Each investment is carefully selected based on rigorous due diligence and market analysis to ensure stability and growth potential.
While returns can vary based on market conditions and the performance of individual assets, the SIF aims to provide competitive yields that outperform traditional savings accounts and fixed-income investments. Investors benefit from regular quarterly distributions and, when available, outsized returns from restructured/foreclosed asset sales.