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 preffered 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.