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1. What markets do you have exposure in?
We buy loans nationwide; as of June 2025, our portfolio had loans in 38 different states and 300+ unique zip codes.
2. How does the fund find borrowers?
To be specific, the fund does not find borrowers or originate loans. The fund simply buys loans that fit the fund’s criteria from Vontive, Charles’ mortgage company. Votive does the heavy lifting of finding borrowers, underwriting loans, funding the loans, and managing the servicing (or managing the third party servicer) for the life of the loan.
3. How long has the fund been around?
The fund started in January 2022
4. What’s the lockup period?
1 year
5. How does the redemption process work?
After the 1 year mark, once we receive a written redemption request, we’ll initiate the redemption process. Bozeman Capital has up to 90 days to honor the redemption, though historically it hasn’t taken more than a month to honor a redemption request.
6. How do you handle foreclosures in the event of a default?
The fund owns a participation in the loan; Vontive, Charles’ mortgage company is the one that handles the foreclosure process in the event of a default. They have a team in place to handle this.
Vontive has multiple exit strategies depending on what’s best for the investor. Vontive can either foreclose and sell the property immediately, foreclose and partner with another local real estate investor to finish the renovations and sell the property, or Vontive can also turn the property into a rental as long as it meets the return requirements for investors.
When the property is sold, the proceeds first go to pay off the A piece, then the B piece, and finally the borrower.
7. What is the risk profile of this investment?
The B piece that Bozeman Capital purchases sits behind the borrower’s equity and ahead of the A piece in the capital stack. To evaluate the probability of the B piece losing principal, it’s helpful to understand the average loan-to-value and loan-to-cost of the portfolio. As of June 2025, the average LTC of the portfolio is 82.7%, which means that borrowers have 17.3% of their own skin in the game. Additionally, the average loan to as-is value (the initial loan value divided by the market value of the property at acquisition) is 68.3%, and the loan to after repair value is 64.1%.
In order for the loan principal to be affected, the borrower would have to default and the property would need to be sold at a 31.7% discount to market value before renovations and 35.9% after renovations, which is exceedingly unlikely.
To mitigate risk, we have broad geographic diversity to make sure we’re not overly exposed to individual markets, we make sure that the borrowers have a high FICO score (756 average), and that the borrowers have a lot of personal assets and liquidity in case they go over budget.
8. How does the credit enhancement account work?
We set aside 50% of the GP fees that we collect into a separate cash account up to 20% of the total fund size. In the event of any sale that would cause loss of loan principal for the LPs, this credit enhancement account steps in and absorbs losses first. This essentially acts as another 20% buffer on top of the 22.5% equity buffer from the borrower to absorb loss.
9. What is the current concentration of borrowers in the fund?
Our maximum concentration limit with any individual borrower is 5%. No borrower can make up more than 5% of our portfolio.
10. Have the financials been audited?
No. Generally funds get audited around the ~$100M AUM mark since audits are relatively expensive. We plan on doing a 2025 audit since we think we’ll be sufficiently large by that point.
11. Can the fund take on any debt or any other kind of leverage?
No.
12. What kind of tax documents can we expect?
The fund will send out K1s. The distributions are recorded as Interest Income.
13. Is dividend reinvestment possible?
Yes, unless PoF decides otherwise
22. Is this a 506b or c offering?
506c. All investors must be accredited investors.
