Investor capital preservation is the number one goal at The Bedrock Fund. Even though our business is growing rapidly, we continue to correlate our success with the protection of your capital. We do not take unnecessary risks for growth or profit. Fortunately, we don’t have to, as our loan borrower base is one of the strongest in the business. We are very selective in the borrowers we invite into the system. We do not advertise for borrowers- we hand select each one. That has been true since 2019. This has been our secret sauce and will continue as we move forward.
The Bedrock Fund and Risk Diversification
As we grow, our capital preservation and your investment protection come from three things: 1) exceptional borrowers, 2) exceptional capital partners, and 3) risk diversification. We harp on the first one a lot as it is so important, but this quarter we’d like to discuss numbers 2 and 3, as they go hand in hand.
As you know, when you invest money in the Fund, it is secured by loans on potentially hundreds of homes in multiple markets by many borrowers. We do not assign your money to one particular loan or property as many of our competitors do. Having your money distributed across many loans gives you the ultimate protection from risk of default or foreclosure. If you were tied to one property or loan, the risk would go up exponentially. To continue to reduce your risk profile, we continue to grow our capital stack to make more loans to more borrowers on more properties thereby reducing your risk. We have grown our capital stack over the past year by adding investors such as yourself, as well as, partnering with one of the nation’s most reputable banking giants.
Highlighted Growth Benchmarks
The last four years of growth at The Bedrock Fund have been very exciting. We are very proud to have created a boutique lending fund for top performing real estate investors while keeping our investors’ money safe. Here are the past few years with expectations for 2024:
The Bedrock Fund & Western Alliance Bank
At the end of 2023, The Bedrock Fund secured a banking and capital relationship with Western Alliance Bank, Member FDIC. WAB now provides additional funding to the Fund in the form of a credit facility which allows the Fund to make significantly more loans to more borrowers in more states, which further spreads our investors’ risk. The WAB team spent the better part of a year performing due diligence checks on The Bedrock Fund including financial checks and personnel background checks. We are honored we passed the test! With more than $70 billion in assets, Western Alliance Bancorporation is one of the country’s top-performing banking companies. Major accolades include being ranked as a top U.S. bank in 2023 by American Banker and Bank Director and receiving #1 rankings on Institutional Investor’s All-America Executive Team Midcap 2023-2024 for Best CEO, Best CFO, Best Company Board of Directors and Best Investor Relations Team.
Borrower Spotlight
This quarter, we would like to highlight a superstar borrower/investor, Real Rock, LLC, hailing from the great Northwest! Real Rock is guided by veteran real estate investors Paul and Tanice Myers, who know the value of a reliable funding partner. With over 20 years of experience fixing and flipping houses, they continue to turn to The Bedrock Fund for their financing needs. “The Bedrock Fund makes every transaction easy and seamless,” says Paul. “Their exceptional communication and teamwork with title and escrow ensure a smooth process.” This partnership recently led to success with an off-market property in Coeur d’Alene, ID. See the amazing before-and-after photos of the renovation – the property is currently under contract to sell. Paul and Tanice Myers share their journey and connect with other investors across the USA on their YouTube Channel: https://www.youtube.com/@roadwarriorinvestors. Be sure to check them out!
We are Bedrock Investors Too!
As managers of The Bedrock Fund, we’d like to take this opportunity to thank you for your continued commitment to and belief in The Bedrock Fund. As you might know, the founders of the Fund are also significant investors as well, so we’re right there with you making sure our money is safe, secure and continues to produce reliable returns. One way we ensure the continued security of our investments is to find new investors for the Fund who want to make a solid return on their cash with less risk and more liquidity than most other investments that pay what Bedrock does. Often these are people we know in other parts of our lives- family members, friends, business associates, social contacts, church members, etc. It’s easy to forget that others have the same desires we do to protect their cash assets and be able to get to them easily, while also making a good return. Introducing folks that you know to Bedrock could help secure your investment by spreading what small risk we have over more equity, and also help those you know to realize the same benefits you get from Bedrock. If you know anyone who might have some cash they want to invest for a predictable, safe return, please call or email us with their info and we’ll be happy to send them some information on Bedrock.