Wilshire Finance Partners Launches New Fund to Raise $100 Million for Commercial Property Loans

LOS ANGELES--(BUSINESS WIRE)--Wilshire Finance Partners has launched its second real estate mortgage pool fund to raise $100 million to make commercial property loans. The new fund, Wilshire Income Fund II, is the company’s first fund to target borrowers and investors nationwide.

“Our initial fund was only available to California residents,” said Kevin DeMeritt, president. “The company recently filed a Regulation D (Reg D), and is now approved to open Wilshire Income Fund II to investors and borrowers nationwide.

“Affluent investors, retirees, foundations, pension plans, trusts, limited and general partnerships, corporations and others interested in an investment that provides a monthly cash flow, high yields and security of principal should consider investing in mortgage pools.

“Reduced property values, combined with stricter lending criteria, are making it increasingly difficult for commercial property owners to obtain financing from conventional lenders. Unable to obtain loans from traditional sources, they are turning to private lending institutions, such as Wilshire Finance Partners, for short-term loans. This has opened up a window of opportunity for private lending institutions to profit by making commercial real estate loans.

“Similar to a mutual fund, a mortgage pool fund consists of a number of well-underwritten trust deed loans. Investors purchase shares of the mortgage pool fund and money in the fund is lent to borrowers.

“Wilshire Finance Partners’ trust deed investments vary according to interest rates, type of property, loan-to-value ratios, location of property and maturity dates. The diversified loan portfolio, combined with a loan-to-value ratio of 65%, with a 35% protective equity, reduces investor risk; if any single loan has a problem there is only a minimal impact to the fund.

“You have to ask yourself the question…would you rather own a piece of commercial property now at 100% of its value, or loan on a property at 10 to 12% knowing, if you do get the property back, you get it back at 65% of today’s value. In this market, I would rather lend on property then own it.”

Headquartered in Los Angeles, Wilshire Finance Partners, an asset-based commercial real estate lending institution, is located at 1990 S. Bundy Dr. #630; Los Angeles, 90025. Phone: 866-575-5070; 310-736-1370; www.wilshirefinancepartners.com.