With the safety of investors’ income and principal in mind, the Fund generates consistent and stable income by issuing or purchasing mortgage and trust deed loans according to strict underwriting criteria with a maximum Loan-to-Value ratio of 70%. The Fund diversifies its portfolio by loan type, maturities, and property locations, but will concentrate loans in areas with historically stable valuations to avoid potential bubbles, as well as concentrating in areas with advantageous foreclosure laws for quick exits of non-performing loans. The Fund has established a “Contingency Reserve” to cover additional legal expenses that secure the Fund’s interests in non-performing loans including foreclosure proceedings. Unlike investments in Bonds and Annuities that have no tangible assets backing them, an investment in the Fund provides for multiple methods of investment recovery in the event of a default including property sale, property rental, or selling loan.