COASTLINE CAPITAL FUND MANAGEMENT
Here’s the standard disclaimer:
Past performance is no guarantee of future performance or future returns. We cannot guarantee that we’ll get the same results going forward.
That being said, the way we invest in notes is a lot different than the typical stock or bond investment. We are “fix and flip” guys for notes. We purchase severely delinquent notes at a discount with the intent to liquidate at higher prices. We don’t just hope that home prices go up over time or speculate on what the housing market will do.
We actively force appreciation on the assets we purchase by taking them through the foreclosure process or getting borrowers to start paying again.. We provide value and make a profit for our investors by working the assets to make them worth more. It’s not some kind of miracle or luck on our part.
We’re doing the hard work of taking the “Non” out of “Non-Performing Notes.” The reports below contain loan level reporting on past non performing notes that we’ve liquidated.
Check out our Past Performance:
COASTLINE CAPITAL FUND II
Coastline Capital Fund II, LLC raised $550,000 and closed to new investors in December, 2017. The Fund purchased 5 first position, non-performing loans with $707,433 in Unpaid Principal Balance (“UPB”), $831,396 in Total Collectible Debt, and $918,900 in Fair Market Value of collateralized property. The properties that secured these notes were located in North Carolina (2), California (1), Illinois (1), and Oklahoma (1).
The Fund offered an 8% Preferred Return and a 60% Profit Split to the Investors. The maximum anticipated hold time was 36 months but we were able to completely liquidate the Fund after only 15 months.
The Fund began making payments to investors in September, 2018, and returned an IRR of 9.7% to the investors. (One of the five notes incurred a loss because the property, located in New Bern, NC sustained significant flood damage from Hurricane Florence (a “1,000 year event”) in September, 2018; if this note had a “normal” outcome, the IRR to investors would have been 17.4%.)
NOTES BEFORE COASTLINE CAPITAL FUNDS
Before we started creating and managing the various Coastline Capital Funds, we partnered with different capital partners to purchase non performing notes. In those situations, our joint venture partners provided the capital while we provided the acquisition and management expertise.
Although joint ventures have been mutually beneficial for our partners and for us, we decided that we wanted to combine efforts to create Funds that could involve a greater number of investors, resulting in raising higher capital and larger non performing note portfolios.
We’ve compiled a list of notes that we purchased with joint venture partners prior to our Funds: