Investment Model

The following outline describes the investment model that Pac One Fund offers to Accredited Investors throughout the United States and around the world.

This is not an offering to sell securities. All Investors should review carefully the offering circular for Pac One Fund L.P. prior to Investing. If you have any questions, please contact our Investment Team at 541-284-8056 or investments@paconefund.com

The way it works

The Pac One Fund allows Investors (hereafter “Limited Partners”), who meet the criteria of an Accredited Investor as defined above, the opportunity to purchase units in The Fund. Each unit is $50,000, and the initial minimum purchase is one unit.

You can increase your investment by any amount, once you’ve made the minimum initial investment. Each Limited Partner may own a different number of units, including fractions of units, once the one-unit minimum is achieved. While there are provisions allowing for withdrawal, your minimum time frame for investment in The Fund is 12 months.

The Limited Partnership is managed by the General Partner, Kevin Simrin. The General Partner oversees the daily operations of The Fund as authorized by the Limited Partnership Agreement, and Limited Partners have a passive role in the Partnership. The General Partner determines which loans are acquired by The Fund, based on the guidelines detailed in the offering documents.

Limited Partners can elect to receive their earnings distribution monthly via electronic deposit, or they may select the growth option, where earnings are retained by The Fund and automatically reinvested on their behalf.

The Collateral

The vast majority, if not all the loans purchased by the Pac One Fund are originated by Precision Capital. Precision Capital is a loan origination company owned by the Pac One General partner, Kevin Simrin. This integrated ownership model allows the loans purchased by the Fund to meet the standards in underwriting, property valuation and servicing Kevin looks for in investments. Every loan is backed by a trust deed (lien) on real estate.

In addition to origination, underwriting and funding the loans, Precision Capital services all the loans as well. Precision’s serving staff specializes in protecting investor returns with a rigorous servicing and loss mitigation division.

Limited Partner obligations

The Limited Partner should seek competent legal, accounting and tax advice to ensure that an investment of this type is right for them. The Limited Partner should also review the Pac One Fund Private Placement Memorandum, Limited Partnership Agreement and Subscription Agreement carefully. It is these documents that detail the financial arrangements and risks. The limited partner must provide the General Partner evidence that they are an accredited investor.
  • A minimum net worth of $1,000,000, which cannot include an individual’s primary residence; or
  • An annual income of $200,000 or more for the past two years as an individual or $300,000 annual income for the last two years as two people investing together.
  • To comply with Federal regulation, the General Partner’s compliance department verifies that all Investors are accredited.
See the Private Placement Memorandum for further details on Accredited Investors.

General Partner Responsibilities

For The Fund, the General Partner acquires loans that are originated, screened and underwritten by Precision Capital, or other loans that meet the stated objective of The Fund. All loan underwriting includes:

  • Credit review
  • Financial analysis
  • Confirmation that the promissory note is secured by a trust deed on the property
  • Valuation of property
  • Analysis of borrower’s ability to repay loan
At the direction of the General Partner, all loans are serviced by Precision Capital who is responsible for, among other things:
  • Receipt and accounting of all payments
  • Receipt and accounting of all payments
  • Receipt and accounting of all escrow funds for taxes and insurance, if applicable
  • Ensuring all property taxes are paid to the appropriate municipality, as necessary
  • Ensuring fire insurance is in effect on all improved properties
  • Following standard protocol for delinquent payments
  • Managing foreclosure and property disposition if directed by the General Partner
  • Providing escrow or borrower payoff information on loans
  • Completing monthly accounting

The General Partner maintains Fund compliance, which includes the following, among other things:

  • Having Federal and State income tax returns prepared timely by an outside accounting firm
  • Providing all Limited Partners the appropriate tax documents, including the K-1 form annually
  • Maintaining entity registration with required government entities

This is a brief outline of how the Pac One Fund works. All Limited Partners should carefully review the offering documents prior to investing. To learn more about Pac One Fund, contact Pam or D’arcy at 541-284-8056  or investments@paconefund.com.

Ready to Invest?