What am I investing in?
Investors are Members in Nikols Mortgage Fund, LLC (“the Fund”) which holds a diversified portfolio of commercial real estate loans with 1st trust deed collateral. The Fund is 100% owned by its Members.
What returns has the Fund provided?
From 2014-2023 the average return has been 6.6%.
How often are distributions made?
Monthly– investors may choose to take a monthly cash distribution or reinvest the distribution, adding to their account balance.
How much is the minimum investment?
The minimum investment amount is $50,000 but we have investors with over $6 million with us.
Can I invest retirement money?
Yes. Due to its consistent returns and high yields, the Fund is an excellent vehicle for self-directed IRA and Pension Plans.
Do I pay a load or commission when I invest?
No. 100% of your capital gets invested and earns interest.
Is there a minimum investment term?
The Fund has a 1-year investment commitment.
What happens if something changes with interest rates or real estate markets?
Our loans are typically only 12 months, which limits investor exposure to market changes while allowing borrowers to add value and quickly reposition an asset.
How do you minimize risk?
With healthy markets, disciplined underwriting, and a diversified portfolio of conservative loans on California real estate, the Fund is built for capital preservation. We only lend on deals we understand, in markets we know, with exit strategies we believe in. The Fund only makes 1st trust deed loans on tangible real estate collateral in which the borrower has meaningful equity. The Fund’s diversified portfolio may include loans on industrial, multifamily, infill for-sale residential developments, triple-net retail properties and entitled infill land. Investor returns come from borrower interest collected and distributed monthly and do not require borrower profit, price gains or economic growth.
Why do borrowers come to you instead of a bank?
The Nikols Company’s reputation for creative loan structures and quick, certain loan closings attracts numerous lending opportunities at rates that are frequently above less reliable and less nimble competitors. Because the Fund’s loans are short-term and allow its borrowers to unlock significant value, certainty of closing is often more important than getting the lowest interest rate. The Fund’s borrowers often have opportunistic purchases, unique situations, and quick closings that are ill-suited to institutional financing because these lenders are constrained by tight regulations, inflexible loan parameters and burdensome processes.
How do I invest?
Contact Don Nikols to learn more about investing in the fund.
Newport Beach, CA 92660
California Finance Lender
The Nikols Company, Manager4041 MacArthur Boulevard
Newport Beach, CA 92660
The Nikols Company is pleased to make a contribution from the proceeds of each loan to THINK Together, providing high quality academically-oriented after school programs for K-12 students regardless of race, creed, or socioeconomic status. www.thinktogether.org