OPPORTUNITIES WITHIN THE CANNABIS MARKET
A REAL ESTATE INVESTMENT TRUST
PELORUS
FUND
why a mortgage reit now?
Pelorus has built an impressive pipeline of deals that are collateralized by real estate at modest loan to values (LTVs), supplemented by personal/corporate guarantees.
MULTIPLE INVESTMENT BENEFITS
There are multiple investment benefits obtained by structuring the Pelorus Fund as a private Mortgage REIT, most notably a 20% tax deduction on Federal Taxes and a domicile advantage for favorable states (K-1 reporting for states).
Pelorus
Fund benefits
— Target Yield: 15% IRR
— Monthly Distributions
— Diversified Portfolio of High Yield Commercial Mortgage Notes
— Provides a 20% QBID (Qualified Business Income Deduction)
— REITs “cleanse” UBTI for self-directed IRAs
— Established in 2018 / Converted to Mortgage REIT in 2020
— Income Alignment of the Manager (GP and Members (LPs)
HIGH-YIELD CASH FLOWING INCOME
The double-digit monthly returns have an additional potential upside with some transactions having options for warrants that the Fund may harvest at some point in the future.
Pelorus Fund
INCOME ALIGNMENT IS HOW WE PROVIDE a 15% IRR
WE ARE ABLE TO SECURE EQUITABLE TERMS
FROM BORROWERS AND CONVERT THIS INTO
HIGH-YIELD RETURNS FOR OUR INVESTORS.
We distribute profits from loan origination points, net income, extension fees, and
exit fees.
MEMBERS ONLY
NET INCOME
This is the direct interest we collect from the loans. We distribute this monthly to our members. This andother fee income is how we meet the targeted 15% IRR.
MEMBER INCOME: 100%
MANAGER INCOME: 0%
SPLIT
EXTENSION/EXIT FEES
When a borrower extends a loan there are fees charged.We split 75% to our members and retain 25% for managementincome and support.
MEMBER INCOME: 75%
MANAGER INCOME: 25%
SPLIT
ORIGINATION FEES
When we close a deal, we receive 75% of the origination fees.We split 25% to our members. This allows us to keep ourmanagement fees thin and consistent.
MEMBER INCOME: 25%
MANAGER INCOME: 75%
SPLIT
PROFITS
When a borrower exits out of a loan and fees are paidwe split 50% to our members and retain 50% for managementto help keep our fund fees at the 1% level.
MEMBER INCOME: 50%
MANAGER INCOME: 50%
Pelorus Fund
$100,000 Investment Example
The potential return from an initial investment depends on how you want to model your monthly distribution. Many of our clients prefer the reinvestment model, while others use the cash distribution model as their preferred method of investing.
Example Model
REINVESTMENT
An initial investment of $100,000 is made into thePelorus Fund and left for 10 years. The profits arereinvested for a compound effect for 10 years.
PROFIT: $344,000
BALANCE: $444,000
Example Model
CASH DISTRIBUTION
An initial investment of $100,000 is made into thePelorus Fund and left for 10 years. The profits areextracted monthly as cash distributions.
PROFIT: $150,000
BALANCE: $250,000
Pelorus Fund
Investments secured by real estate
The cannabis real-estate market is special as the property itself is worth more than normal property
due to the special zoning/permits for cannabis use. Pelorus is a Real Estate Investment Trust (REIT) so
our loans are secured by the borrower’s real estate and personal/corporate guarantees.
In the green zone
Cannabis related businesses must be located within a Green Zone and have a Conditional Use Permit.
CONDITIONAL USE PERMIT (CUP)
Once a property has a CUP for cannabis, it remains in place forever.
LEGAL AND SAFE
Since 2014 the Rohrabacher-Blumenauer amendment has provided economic security against any federal involvement
OUR FUND MAKES SECURE LOANS
We make loans at conservative LTVs collateralized by the real estate assets, personal and corporate guarantees.
NO CORRELATION TO INVESTING IN THE CANNABIS EQUITIES MARKET
Investing in the Pelorus Fund is not like investing in the Cannabis Equities Market. We make loans secured to owners of properties that are zoned and licensed for Cannabis operations. We are hands-off with investing in the cannabis production/operations.
your next step is to contact us
Getting setup and investing in Pelorus is super quick and easy. We’ll guide you through the process and answer any questions you have.