High Yield Investments – Alternative Investing
The experts at Wilshire Finance Partners (“Wilshire”) have a single focus – deliver high yield investments through real estate-based alternatives that generate consistent returns and help to protect the client’s principal investment.
Simply stated, our objective is: Stable Income and Principal ProtectionTM.
High yield bonds, high yield mutual funds, and other higher yielding fixed income securities have been gaining in popularity over the last several years because the interest rate environment has limited the income potential and returns on traditional fixed income securities. Further, although on December 16, 2015 the Federal Open Market Committee of the Federal Reserve increased the federal funds rate and signaled that it will continue to raise rates for the first time in nearly a decade, the volume and velocity of such rate increases are anticipated to be moderate. Albeit those rate increases are primarily designed to impact short term borrowings, they have some influence on longer term rates. Therefore, investors are turning to higher yielding alternatives that have a shorter duration to provide them with the flexibility to size their holdings appropriately and use timing as an advantage. For a number of modern-day investors, shorter term loans secured by mortgages and deeds of trust are the investment of choice to provide higher returns with lower risk and a shorter holding period.
As stated above, Wilshire’s main objective is Stable Income and Principal ProtectionTM and since 2008 we have achieved that for our investors through short term mortgages and deeds of trust secured by real estate. Those loans have historically carried a much higher coupon (or interest rate) with lower loan-to-values than many bank loans. The result has been net annualized returns between 7% and 10%, with monthly cash flow.
High Yield Alternative Investment Funds
In 2013, Wilshire launched the WFP Income Fund and the WFP Opportunity Fund.
The WFP Income Fund is a professionally managed higher yielding fixed income investment alternative that invests in short term bridge loans secured by first deeds of trust and mortgages against real estate within the United States, and predominantly in California – similar to the individual loans our clients enjoyed holding in their portfolios since 2008, but with the added benefits of further risk mitigation through diversification, compound interest through dividend reinvestment, more efficient deployment and management of their invested capital, and the consistency that is afforded under a pooled mortgage fund. The WFP Income Fund generates income for its investors primarily through the interest paid on the mortgages and deeds of trust in its portfolio.
The WFP Income Fund is designed as an evergreen fund, allowing roll of the underlying securities within the fund’s portfolio and permitting investors to remain in the fund indefinitely. The fund also provides a shorter duration through a one (1) year lock-in period and redemptions are permitted thereafter in accordance with the fund’s operating documents. The target net annualized return for the WFP Income Fund is 7.5% to 8%, paid monthly.
As implied in the name, the WFP Opportunity Fund is a professionally managed hybrid fund designed to seek opportunities for higher risk-adjusted returns through institutional quality execution in real estate-based debt and equity investments. Specifically, the portfolio of the WFP Opportunity Fund may include short term mortgages and deeds of trust, joint ventures and participating loans, and direct ownership of residential and commercial real estate which may be located throughout the United States and will be, initially, predominantly in California.
Like the WFP Income Fund, the WFP Opportunity fund is also designed as an evergreen fund with a shorter duration, however, due to the holding periods and dynamics of the securities held in the WFP Income Fund portfolio, this fund has a two (2) year lock-in period and redemptions are permitted thereafter in accordance with the fund’s operating documents. The target net annualized return for the WFP Opportunity Fund is 12%, paid quarterly.
Each of the WFP Income Fund and WFP Opportunity Fund are offered through a Private Placement in accordance with Rule 506(c) of Regulation D under the Securities Act of 1933, as amended (the “Act”). As a result, the funds are only offered to Accredited Investors who receive the respective fund’s Private Placement Memorandum, Operating Agreement and Subscription Documents, and who otherwise meet the general suitability standards contained in those documents.
To learn more about your high yield investing options available through Wilshire Finance Partners, call us today at (866) 575-5070.
* 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 deeds or mortgages, or the securities of the WFP Income Fund, the WFP Opportunity Fund or other securities (individually and collectively, the “Securities”) offered through Wilshire Finance Partners, Inc. (“Wilshire”). The purpose of this Overview is to provide an overview of one or more Securities and its private placement. Persons interested in learning about one or more Securities 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 Securities the terms of the private placement, a discussion of risk factors, and other information related to such Securities. 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 Securities. 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. Securities may be purchased 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. Investments in the funds, trust deeds and mortgages are securities and each of the Securites 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 Securities are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell the Securities. Past performance is not indicative of future results. The Securities 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.