35 years at the helm

The strategy of the fund is to create a portfolio of small balance real estate mortgage loans to produce attractive risk adjusted returns.

The fund’s objectives are to deploy the proceeds of this offering in qualified fund assets (described below) that will be intended to:

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• Preserve and protect each member’s and note holder’s contributed investor capital;

• Provide the members with a preferred return of 9% per annum [on contributed but unreturned capital] and additional distributions which will endeavor to produce overall annualized returns to members in the range of 10% to 12%; and

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The fund will provide financing secured in first lien position to consumers, builders, developers, and investors for the acquisition of various real properties. This will include, but is not limited to: owner occupied residential, construction, non-owner occupied residential rehab, bridge, lot, commercial, construction, and horizontal lot development financing (collectively the “mortgage loans”). The fund will focus on originating mortgage loans with a primary focus in Arizona, secondarily the states of California, Nevada and Florida, and will consider loans selectively nationwide.

The manager of the fund will be Tradewinds Management, LLC, a Delaware limited liability company (the “manager” or “TM”). TM will also represent the note holders as the note holder representative.  The principals of TM are Brad Anderson and Wayne Anderson. Brad Anderson and Wayne Anderson are principals of A&A Funding Corporation, an Arizona corporation (“A&A” or the “originator”).   

Based in Phoenix Arizona, A & A Funding Corp is the origination arm for Tradewinds Capital Fund II. Founded in 1982, we have originated thousands of hard money loans and are one of the oldest private money lenders in Arizona

The manager has initially engaged Fairway America, LLC, an experienced and long-time fund manager as well as fund advisory, consulting, administration and servicing firm, to provide the fund with professional administration in the areas of financial statement preparation, investor subscriptions and redemptions, and other back-office administration functions. Fairway America has the relevant infrastructure, resources and experience that are expected to significantly assist the fund and manager in the professional administration of the fund. The cost of these services will be a fund expense.

• 9% preferred return

• 11.2% 3 year average return in Fund 1

• Anticipated average return for Fund II is 10 to 12%

• 80/20 profit split (EDC) for Class “A” members and 50/50 for Class “B” members (after pref)

• Secured Note Holders can expect a return of 6 to 8%

• Members have the option to let their investment accrue and grow, or take quarterly cash dividends

• Each investor in the fund must be an Accredited Investor

• Minimum initial investment of $50,000 (at the manager's discretion)

• The maximum offering is $50,000,000

• The fund will be owned by investors purchasing equity interests or membership units in the fund (“Members”). Members will own 100% of the fund, each in a percentage equal to their outstanding units divided by the total units outstanding. The class of units a member owns is based solely on the size of their investment in the fund.  Members who invest $500,000 or more will own Class A units, Members who invest less than $500,000 will own Class B units. The units are identical with the exception of the manner in which excess distributable cash (“EDC”) is split between the manager and the members. 

• The fund will engage in originating, acquiring and managing real estate loans secured by deeds of trust.

  • Commercial and residential properties construction, rehab, rental properties, vacation homes, owner occupied

• Typical loan-to-value on our investments is 65 to 70% with a ceiling of 80%

• All loan are serviced through an independent 3rd party servicer

• All loans are assigned to the fund at close and are owned by the members