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Discover a reinspired take on a Mortgage Note Investment Fund designed to prioritize steady, monthly returns. Passive income. Performance. Speed to market and flexibility. Enjoy passive income with top-tier performance, rapid market entry, and unparalleled flexibility. Invest in your future today.

Target Returns
8%-12%
Distribution Frequency
Monthly
Minimum Investment
$25,000
Lockup Period
2 Years
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Fund Overview

Fund Strategy

BCF Fund II is built on a foundation of trust, expertise, and innovation. Our investment strategy is designed to deliver stable, high-yield returns and provide accredited investors with a unique opportunity to diversify their portfolios and achieve their financial goals.

The Fund’s unique structure enables it to be nimble and adaptive to any market, ready to quickly capitalize on profitable opportunities while continually enhancing its overall performance.

The Fund invests in first-position residential mortgage notes, with a focus on single-family homes in communities across the United States. Our investment mix includes a robust percentage of performing notes to ensure steady returns, supplemented by re-performing, and non-performing notes for higher yield potential.

Investment Strategy Factors:

High Quality Sources
Buy at discount by buying in bulk. By low performing notes with the intent to work out to generate cash flow, but are a solid investment for when that isn’t an option.

Rigorous Due Diligence
Each asset undergoes a thorough evaluation process to mitigate risk and maximize potential returns. Our expert management team leverages over 40 years of industry experience to identify high-quality opportunities and strategically manage investments.

Risk-Managed Diversification
By spreading investments across geographies and performing, re-performing, and non-performing notes, we minimize exposure to any single market or economic condition while maximizing potential returns.

Active Portfolio Management

With a hands-on approach, and advanced analytics and technology, we continually evaluate and adjust our holdings to ensure optimal performance in an ever-changing market.

Details

Life of Fund
Evergreen
Management Fee
0% (profit splits)
Fund Type
Regulation D 506(c)
Investor Qualification
Accredited Investors
IRA Eligibility
Yes
Tax Document
Form 1065
Profit Source
Net Cash Flow
Legal Structure
Limited Liability Company
Target Returns
8% – 12% Annualized
Distribution Reinvestment
Optional - Full or Partial
Preferred Return
0%
Lockup Period
2 Years

Highlights

No Management Fees

Incentivised For Performance

Rather than a fixed expense of a guaranteed Management Fee, Fund managers are solely compensated through profit splits and incentivized through performance-based tiers, ensuring their interests are fully aligned with yours.

Progressive Tiered Profit Splits

Our fund employs a progressive tier system for profit sharing. The first threshold of performance is weighted heavily in investors’ favor. As the fund’s performance increases, higher tiers reward the fund manager for increased performance. This structure motivates our managers to maximize your profits, as their compensation increases with better fund performance.

No Preferred Return

Velocity to Market

Similar to Management Fees, Preferred Returns restrict fund managers from quickly capitalizing on overall great opportunities. Removing this restriction allows flexibility to jump on opportunities quickly, increase the frequency of asset trading, and continuously improve holdings over time.

Faster Returns

With no Preferred Return, capital is deployed faster and all investors participate in the profits sooner, enhancing overall returns, and increasing the time-value of investments.

Market Flexibility

A fixed Preferred Return locks an investment fund into a structure for the life of the fund, limiting its ability to respond and adapt to changing market conditions. BCF Fund II ‘s structure enables it to deliver high-yield returns in any market conditions.

Passive Investing

Monthly Cash Flow Options

Investors can choose to receive monthly income, reinvest returns, or a combination of both. This flexibility allows you to balance short-term income with long-term growth, adapting to your financial needs.

Investors also have the option to automatically reinvest all or part of distributions back into the Fund, accelerating returns at a compounding rate.

Secured By Real Estate

BCF Fund II investments are secured by real estate, offering a physical asset as collateral. While no investment is risk-free, note investing provides higher-than-average returns compared to traditional options, with added security from tangible property backing each note.

Diversification

Investing in mortgage notes enhances diversification within both your real estate and overall investment portfolio. Furthermore, pooling funds with other investors in BCF Fund II you add another layer of diversity as your note investments are spread across geographies and asset classes, leveraging economies of scale to drive stronger performance.

Fund Structure

Distribution Splits

How returns work

Monthly returns are based on net profit, referred to as Excess Distributable Cash (EDC). The monthly Fund Return is expressed as an annual cash-on-cash figure and calculated as:

Fund Return = Net Profit / Funds Deployed * 12

Tiered Profit-Sharing Structure
Tier 1

The first 8% Fund Return is split 80% to Investors and 20% to the Manager.

Tier 2

The remaining EDC above 8% is split 50/50 between Investors and the Manager, up to each Class’s Annual Cap.

The percentage Investors receive after splits is referred to as the Investor Return, expressed as an annualized cash-on-cash return.

Example Scenarios and Annual Caps
  • A 10% Investor Return requires a 15.2% Fund Return.
  • Once Class C caps out at 10%, remaining EDC is split 50/50 between Class B and the Manager until Class B reaches its cap of 12% Investor Return.
  • The Class B Cap (12%) is reached at a 19.2% Fund Return, or less depending on the proportion of Class B to Class C investments.
  • Any further available EDC will be distributed to both classes until Annual Cap is reached for the calendar year.
Additional Notes and Definitions
  • Caps are only for the calendar year and reset every New Year
  • All percentages are annualized for ease of understanding.
  • EDC
  • Fund Return
  • Investor Return
  • Monthly Cap
  • Tiered Progressive Splits
Fund Return
Class B
Investor Return
Class C
Investor Return
8%
6.4%
6.4%
12%
8.4%
8.4%
15.2%
10%
10%
15.2% - 19.2%
Depends on Class proportions
10% (Capped)
19.2%+
12% (Capped)
10% (Capped)
* all percentages annualized

Investor Classes

Minimum Investment
  • $25,000 or $200,000, depending on Class
  • Shares in $10,000 a increments
  • Automatic Class upgrade upon reaching the threshold (automatic reinvestment or additional contributions
Deposit Maximum
  • A percentage of commitment may be required as a deposit upon signing documents.
  • Held until your investment is deployed (up to 6 months).
  • If no opportunity arises within 6 months, you may withdraw or continue waiting.
Annual Cash-on-Cash Cap
  • Distributions are subject to a maximum payout limit for each calendar year.
  • Excess returns beyond the cap are distributed to “true-up” and reach the cap for the current calendar year.
Investor Classes
Class B
Class C
Minimum Investment
$200,000
$25,000
Deposit Maximum
10%
25%
Annual Investor Return Cap
12%
10%

Investing Schedule

Frequently Asked Questions

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