Income Type:Income & Growth
Target Return:up to 6.5% above Preferred Rate of Return
- Inception Date: 2/25/2015
- Net Return Since Inception (12-31-2016): 12.59%
- Investment Type: Open-Ended Fund
- Asset Locations: Nationwide
- Investment Criteria: Accredited Investor
- Equity Lock-up Period: 2 years
- Maximum Offering: $100,000,000
- Preferred Return: 9.5%
- Profit Split: 50/50 Members / Manager (after Pref)
- Note Rate: 5-6%
- Distribution Frequency: Quarterly
- Maximum Leverage: 66%
- Current Leverage: <4%
- Management Fee: 2.0%
- Fund Administrator: Redwood Real Estate Administration (formerly known as Fairway America)
- Securities Counsel: Ater Wynne
- Accounting/Auditing Firm: Spiegel Accountancy
- Available on Alternative Investment Platform?: Yes, through multiple Custodians
- Assets Under Management (9/30/2016): $15,492,442 (Unpaid Principal Balance + Real Estate Owned)
Colonial Capital ManagementSouthlake, TX
Colonial Capital Management, LLC is a private equity investment firm that manages funds that primarily invest in single-family residential real estate as well as the debt (notes) related to single-family residential real estate. Our fund’s portfolios consist principally of non-performing or sub-performing residential mortgage loans and real estate owned acquired from banks and other financial institutions (“REO”).
The Principals of Colonial Capital Management have been involved in large-scale, privately-funded discounted and distressed mortgage loan acquisitions and management for nearly 40 years. Early on, these trades were funded transaction by transaction, an inherently inefficient system. Starting in 2014, driven by the need for greater efficiency with fundraising, sourcing, and asset management, we launched our first Reg D fund, Colonial Fund 17. This fund, while still active although we are not currently raising new capital for it, had slightly different features and parameters and has been financially successful for our investors. Like our current offering, this early fund was rooted in a balance of non-performing (distressed) and performing note asset classes aimed to bring our investors a suitable, risk-adjusted return.
Eddie Speed, Managing Partner
Since 1980, W. Eddie Speed has dedicated his professional life to the seller financing and nonperforming note industry. Mr. Speed founded NoteSchool, which is a highly recognized training company, specializing in educating its clients on how to purchase both performing and nonperforming mortgage notes for less than face value. He is the owner and President of Colonial Funding Group, a company that acquires and trades discounted real estate secured notes. In addition, Mr. Speed is also a principal in a family of private equity funds that acquires bulk portfolios of notes. Mr. Speed has been a leader and innovator in the note industry for over 35 years.
Bob Repass, Managing Partner
Bob Repass is a 25-year veteran and expert in the seller financing and distressed asset industry. Over the course of his career, Mr. Repass has purchased over 40,000 performing and nonperforming mortgage notes totaling over 2 billion dollars, giving him an unparalleled track record in the industry. Mr. Repass previously served as the President of Pathfinder Equity Holdings, LLC, a mortgage consulting, loan trade advisory, and real estate investment firm whose focus is to assist clients in realizing the maximum potential of their investments by improving acquisition returns, as well as loss mitigation and exit strategies. Mr. Repass currently serves as Managing Director of CCM, Colonial Funding Group, and NoteSchool, where his primary focus includes asset acquisitions and regulatory compliance.
Charles Mangan, Managing Partner
After majoring in real estate finance at the University of North Texas, Mr. Mangan began his career in the early 1980’s at the height of the savings and loan crisis and subsequent RTC era. Mr. Mangan is a seasoned professional with over 30 years of experience in the real estate finance and servicing arena. During the course of his career, Mr. Mangan has been a key player in several major corporations including Southwest Savings Association, The Associates Financial Services, and MCS, contributing to the growth and profitability of each of these organizations. During his 10 year tenure at The Associates Financial Services, Mr. Mangan managed one of the largest real estate recovery divisions in the U.S. through the sale of distressed assets. Mr. Mangan currently serves as Senior Vice President for Colonial Funding Group, responsible for portfolio management and asset disposition.
Ryan Parson, Director of Investor Relations
Mr. Parson has more than 20 years of experience in the financial services, insurance, and real estate industries. He is actively involved with many facets of the nationwide real estate space today including property rehab, acquisition of REO and institutional paper, both performing and nonperforming, buy and hold rental properties, seller financing distinctive properties, and raising private and institutional capital. He employs unique approaches that involve complementary strategies designed to unlock multiple profit and revenue streams for each investor. Ryan holds undergraduate degrees in finance and insurance as well as an MBA from Drake University. In addition, Ryan holds CFP®, CLU, ChFC, LUTCF, and CASL designations. In his role at Colonial Capital Management, Mr. Parson’s primary responsibilities are capital fundraising and investor relations.