Pacific West Mortgage Fund, LLC, originates and invests in high yield mortgage loans secured by real estate throughout the United States, primarily in California.
These mortgages are held in a pool that earns interest paid by the borrowers. They usually have terms of one to four years, and generate interest income and yields of between 9% and 15% per year. Certain accredited investors may purchase shares in the fund and participate in the profit generated from these high yield mortgages. The interest from the mortgages make up the monthly distributions and returns to the Investors.

Despite their high yields, the mortgages to be originated and/or purchased by the partnership are secured by real estate at a modest loan-to-value ratio.
This is because the primary basis for making each loan is the underlying value of the property securing the loan — and each mortgage loan in the pool will be secured by property that is valued much higher than the loan amount itself. Whether commercial, industrial or residential, typically the loan-to-value (LTV) is 50%-60%, but in no case over 70% of the property value. This excess equity in the property provides a high level of protection for the investor. If it is ever necessary for the fund to take control of the property from a borrower, there should be a significant equity cushion to cover the principal, interest and related foreclosure costs.

Loans made or arranged pursuant to a California Finance Lender's license.