Vertical Capital Markets Group, Irvine, Calif., this week launched a new fund that invests primarily in assets of residential performing loans secured by first mortgages or deeds of trust.
Gus Altuzarra, CEO of the Vertical Capital, said the fund is distinct from others in that it targets performing rather than nonperforming assets. The fund does not seek to own real estate but rather wants assets that produce an income stream, he said.
More than 90% of the loans in the fund are performing and are purchased at a significant discount, leaving room to negotiate lower payments for any troubled homeowners, according to the company.
The fund is designed for investments of $1,000 and up. The company previously had launched two similar private placement funds for accredited investors that had stricter qualification requirements, Altuzarra said.