Frequently Asked Questions
Q: How long has Investor Loan Source been managing the funds?
A: The ILS Short Term Fund I LP - Growth Fund and ILS Long Term Fund I LP - Income Fund was created in 2018 to allow investors to take advantage of the returns note funds offer.
Q: What is the minimum investment?
A: The minimum investment in both the ILS Short Term Fund I LP - Growth Fund and ILS Long Term Fund I LP - Income Fund is $50,000. Subsequent investments are also allowed at any time, at a minimum of $10,000.
Q: What is the initial lock-up period on this fund?
A: The initial lock-up period for both funds is one year. After one year we provide best efforts liquidity and allow investors the option to redeem their units on a semi-annual basis with 90 days written notice.
Q: Is this an open-ended fund?
A: Yes, this fund is open-ended, also known as an evergreen fund. We calculate Net Asset Value (NAV) on a semi-annual basis and allow investors to subscribe and redeem at the current share price. Subscriptions are at a fixed price of $50,000 per unit. When an investor redeems, they are due the amount of their capital account, which is going to be equal to their amount invested plus any accrued but unpaid distributions.
Q: Is this a passive investment?
A: Yes, investing in the private fund is completely passive. When investing in a private fund, you are leveraging our management company’s experience in this business and participate in a diversified portfolio. Investors receive their quarterly return by ACH wire or have the option of having their distribution reinvested in additional units in the fund..
Q: How often will I be updated about my investment?
A: Quarterly newsletters are sent out with our quarterly distributions with the option of reinvestment. This details our thoughts on the market, as well as any potential changes in strategy being needed for the foreseeable future.
Q: Will I own a specific note?
A: If you invest, you become a part owner of the fund versus a specific note. Therefore, your capital is diversified across all the notes in the portfolio.
Q: Do I need to be an accredited investor to invest in the fund?
A: Yes, you must be an accredited investor to invest in both the ILS Short Term Fund I LP - Growth Fund and ILS Long Term Fund I LP - Income Fund.
Q: Can I invest with an IRA or 401K?
A: Yes, our funds allow investment through qualified retirement money. This must be done through a self-directed IRA or 401K. If you don’t yet have a self-directed account, we can make introductions to several custodians that we have worked with.
Q: Do your funds generate UBIT?
A: Yes, our funds do use leverage in order to achieve higher returns for the investor, therefore will generate some UBIT for IRA accounts.
Q: How will investing in these funds affect my taxes?
A: Investors should consult with their trusted accountants and attorneys to ensure they understand all tax implications prior to investing. We will provide each investor with a K-1 form for tax purposes.
Have additional questions? Contact us at (979)541-1259 or complete the form below and we will be happy to assist you.