Close
760.258.4486
Mon - Fri : 8:00 - 5:00
What Should We ask Ourselves Before Making any Investment?

The questions prospective investors typically ask are what is the initial cost, what is the return, how secure is the investment, and what is the timing?

Those are great questions.

However, equally important questions to ask ourselves are, what is the worst-case scenario, what is the probability of it happening, and could we absorb the cost?

I am John Lloyd, President, CEO and Co-Founder of Fidelis Private Fund.

With any investment, there is a risk.

The worst-case scenario can mean different things to different people based on the tolerance for risk, overall financial resources, and desired goals.

For example, a prospective investor looking at Fidelis Private Fund as an investment opportunity needs to evaluate the business model, understand the investor requirements, be acceptable with the past performance, and know the fund manager has the necessary experience. Also, the investor should know the worst-case scenario in making the investment, the probability of it happening, and whether one could live with the outcome.

At Fidelis, a fixed-income real estate mortgage fund, we have generated an average of an 8%+ annualized return since inception. In addition, our average loan-to-value ratio for the portfolio is less than 60%. We have a loan loss reserve of over 2.00% of total loan commitments. We have no delinquencies or foreclosures.

Another critical fact to consider in analyzing a mortgage fund like Fidelis is how experienced is the fund manager. I have managed a mortgage fund through the Great Recession with no investor losses, and I have over 30 years of real estate lending, analyzing real estate values, deciphering borrower character, and underwriting risk related to real estate debt.

For Fidelis, the ultimate worst-case scenario is that all the borrowers’ default on their loans, which is highly unlikely. There would be a temporary disruption in the cash flow, and Fidelis would foreclose on all the real estate. The investors would then own all the real estate free and clear through the Fund, and Fidelis becomes a property manager to optimize the return for the investors until the properties are sold.

No matter the type of investment, whether it’s an investment in a mortgage fund like Fidelis or straight real estate equity investment, remember to ask the right questions as a prospective investor, which includes what is the worst-case scenario, the probability of it happening, and could you accept the outcome?

If you are interested in learning more about Fidelis Private Fund as an investment opportunity see our website https://www.fidelispf.com/ for more information or contact me at 760-258-4486 Jlloyd@Fidelispf.com

Why is Vision so Important? Do We Know When Our Attitude Makes a Difference and When It Doesn’t?
Join Discussion

4 Comments

  • Armando Oberholtzer December 13, 2021 at 12:15 pm

    I seem to recall that by Star Trek: Next Generation, the Romulans had become a group of worthy adversaries to the denizens of the Federation.

  • Robin Witthoft December 14, 2021 at 7:24 am

    What would be your next topic next week on your blog..`,’`

  • cast iron woks January 22, 2022 at 5:24 am

    I have learn several excellent stuff here. Certainly price bookmarking for revisiting. I wonder how a lot attempt you place to make this sort of wonderful informative web site.

  • Rosia Laughton January 27, 2022 at 5:47 pm

    very good post, i definitely really like this website, continue it

Your Comment

Leave a Reply Now

Your email address will not be published. Required fields are marked *