Alternative Investment Products through Wilshire Finance Partners
Wilshire Finance Partners (“Wilshire”) is an emerging leader in real estate-based alternative investments. And, in today’s environment, smart investors who are looking to maximize their returns while diversifying risk are increasingly turning to alternative investments which provide a way to obtain higher returns without commensurately greater risk – like the opportunities presented in the investments offered by Wilshire.
What is an Alternative Investment?
“The answer is quite complicated, because the category spans everything from private equity to mutual funds to ETFs – from liquid types of investments to illiquid types of investments – from those that require investors be qualified (meeting certain income and net worth requirements) to those that don’t. In fact, investing in timber is considered by many to be an alternative investment.”
Andrew Klausner, CONTRIBUTOR
Forbes, May 22, 2013
A simple definition may conclude that it is not one of the three traditional asset types; namely, stocks, bonds and cash. Therefore, alternative investments may include hedge funds, ETFs (exchange traded funds), managed futures, commodities, derivatives, real estate and anything other than those three basic investment categories. Thus, we agree with the conclusion that it is a complicated question because today’s financial landscape is littered with various “alternative investments” and it is often difficult for people investing in that environment to cut through the clutter of all the various alternatives to identify which options strike the appropriate balance based on their objectives, risk tolerance and return expectations.
WFP INCOME FUND & WFP OPPORTUNITY FUND
Alternative Investment: The WFP Income Fund
The WFP Income Fund is a pooled mortgage fund that is a short term, fixed income alternative investment that seeks to provide attractive risk-adjusted returns to its investors while helping to protect their invested principal. The fund does this primarily through its investments in a diversified group of shorter term loans secured by first trust deeds and mortgages against real estate within the United States, and predominantly in California.
The WFP Income Fund is offered under a private placement and is not exchange traded. Therefore, the fund is not correlated to the stock or bond markets and is also not exposed to the resulting market risk and volatility. Further, because of the short term nature of its investment portfolio, the WFP Income Fund has little to no sensitivity to interest rate changes.
The loans in the fund are made in accordance with prudent underwriting standards and carry lower loan-to-value ratios which result in a protective equity cushion in fund to buffer against, among other things, adjustments in real estate values. The WFP Income Fund generates revenues primarily through the interest on the mortgage and trust deed secured loans in its portfolio paid by the underlying property owners. The fund has a target net annualized non-compounded return of 7.5% to 8%, paid monthly. Total return for the WFP Income Fund will primarily be paid through the monthly dividend.
As compared to some real estate investment trusts with a five (5) to seven (7) year lock-up, the WFP Income Fund has a one (1) year lock-in provision with investors having the ability to redeem their investment in a series every ninety (90) days thereafter in accordance with the fund’s operating agreement. Investment in the fund is limited to Accredited Investors and the minimum initial investment is $100,000.
Alternative Investment: The WFP Opportunity Fund
The WFP Opportunity Fund is an alternative investment that seeks to generate higher risk-adjusted returns through real estate based debt and equity investments. Those investments are located within the United States, and, predominantly in California. The investments in the WFP Opportunity Fund’s portfolio will include, without limitation, direct and indirect equity investments, joint ventures, deeds of trust and mortgages, participating loans and other real estate related investments. The WFP Opportunity Fund generates revenues primarily through the return on its equity investments and on the interest on the mortgage loans and trust deeds in its portfolio paid by the underlying property owners.
With an objective to pay a higher return on shorter term portfolio investments, this alternative investment fund has a target annualized return of 12%, paid quarterly. The total return for the WFP Opportunity Fund will primarily be paid through the quarterly dividend as opposed to share appreciation.
Wilshire, as the fund’s manager, believes the legal characteristics of the debt and equity investments and the value of the real property related to such debt and equity investments, coupled with the fundamental strategies the manager employs, will enable the fund to earn an attractive risk-adjusted return on the investment while mitigating various risks associated real estate investment.
The WFP Opportunity Fund has a two (2) year lock-in provision and investors have the ability to redeem their investment in a series every ninety (90) days thereafter in accordance with the fund’s operating agreement. Investments in the fund are limited to Accredited Investors and the minimum initial investment is $100,000.
If you would like to learn more about Wilshire Finance Partners and our investment strategies, please contact us at (866) 575-5070 for a no obligation consultation.
* ADDITIONAL DISCLOSURES:
ADDITIONAL DISCLOSURES FOR TRUST DEED AND MORTGAGE INVESTMENTS:
The information contained on this Website (the “Overview”) is not an offer to sell or the solicitation of an offer to purchase trust deed or mortgage investments, or the securities of the WFP Income Fund, the WFP Opportunity Fund or other securities or investments (individually and collectively, the “Investments”) offered through Wilshire Finance Partners, Inc. (“Wilshire”). The purpose of this Overview is to provide an overview of one or more Investments and its private placement. Persons interested in learning about one or more Investments and their private placement will be provided with the Private Placement Memorandum, Operating Agreement (as applicable), Subscription Agreement and other related documents (collectively and inclusive of exhibits and any supplements thereto, the “Memorandum”) prepared by Wilshire, which provides a description of the particular Investments, the terms of the private placement, a discussion of risk factors, and other information related to such Investments. To the extent that there is any inconsistency between the information provided in this Overview and the Memorandum, the Memorandum shall control. This Overview and the Memorandum contain certain forward-looking statements regarding the Investments. The forward-looking statements are based on current expectations that involve numerous risks and uncertainties which are difficult or impossible to predict accurately and many of which are beyond the control of Wilshire’s management, including, but not limited to, national and international economic conditions, changes in legislation, and other factors that can disrupt economic stability. Although Wilshire believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements, the inclusion of such information should not be regarded as a representation by Wilshire, any placement agent, or any other person, that the respective objectives and strategies of investing in one or more Investments will be achieved. Investments be made solely by accredited investors (which for natural persons, are investors who meet certain minimum annual income or net worth threshold), who are provided with the Memorandum and who complete, execute and deliver the subscription documents included therein. The Investments are securities and each of the Investments are being offered in reliance on an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), provided by Regulation D, Rule 506(c), and are not required to comply with specific disclosure requirements that apply to securities registered under the Securities Act. Neither the Securities Exchange Commission nor any state securities regulator or agency has passed upon the merits of or given its approval to the securities, the terms of either offering, or the accuracy or completeness of any offering materials. As securities offered in an exempt transaction, each of the Investments are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell the Investments. Past performance is not indicative of future results. The Investments involve substantial risk, including loss of investment, and is not suitable for all investors. Loans are made by Wilshire Finance Partners, Inc., Bureau of Real Estate Broker’s License number 01523207. Loans made by Wilshire Finance Partners, Inc. outside California will be made pursuant to licenses, authorizations or exemptions in each other state.