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When investors evaluate a mortgage fund, the first thing they usually look at is the yield—and I get it. Yield is important. But if you stop there, you’re missing the full picture.
As the manager of TaliMar Income Fund, I’ve seen firsthand that real performance comes from the structure behind the returns. How a fund manages risk, services its portfolio, and preserves capital—that’s what drives long-term consistency. So let’s take a moment to walk through the other side of the coin: the operational metrics I pay attention to every single day.
One of the most important risk indicators in any mortgage fund is the average loan-to-value ratio across the portfolio. At TaliMar, we keep our average LTV under 65%. Why? Because when you’re lending on real estate, equity matters. A borrower with real equity in the deal is much more likely to complete the project and pay off the loan—even if the market shifts.
A conservative LTV gives us breathing room in uncertain environments. And in a market like this, where headlines change by the hour, having that cushion is critical.
Every fund has bumps. The question is—how are they managed?
We track non-performing loans very closely. If a loan goes sideways, it’s not just about recovering the capital—it’s about understanding why it happened and how we can prevent it from happening again. Investors should always ask how many loans are currently non-performing and what’s being done about them.
Low NPL ratios (under 2% is a good benchmark) don’t happen by chance. They’re the result of disciplined underwriting and active asset management.
Liquidity doesn’t get enough attention until markets tighten. We keep a healthy amount of cash on hand—both to fund new deals and to protect against unexpected redemption requests. Having liquidity allows us to act on strong opportunities and maintain investor confidence when others are scrambling.
If you’re looking at a fund, ask about its cash position and whether it uses a line of credit. A strong balance sheet provides staying power, which is exactly what you want when markets are volatile.
Most of our loans are 12 to 18 months in duration. That short time frame allows us to constantly reassess risk, reprice loans based on the market, and keep the portfolio turning over. It’s one of the best tools we have to stay responsive and protect capital.
Longer-term paper might look good on day one, but it ties up your capital in a fast-changing environment. With short-duration debt, we have optionality—which is critical in today’s rate cycle.
We focus on lending in California’s most competitive markets—San Diego, Orange County, Los Angeles—because we know them well. We understand supply constraints, buyer behavior, and market velocity. That’s not by accident. It’s by design.
When you’re reviewing a fund, take a close look at where the collateral is located and what types of properties are being financed. Strong markets with demand fundamentals tend to recover faster and hold value better in downturns.
At the end of the day, yield matters—but how you get there matters more.
As an investor, don’t just chase returns. Ask how the returns are being created. Look under the hood. Ask about underwriting discipline, servicing controls, liquidity, and market exposure. These are the things that allow a fund like ours to navigate uncertain markets and continue delivering results.
That’s how I look at performance—and that’s how I run the fund.
If you ever want to walk through our approach in more detail, I’m always happy to connect.
TaliMar Income Fund I offers investors the ability to participate in the rapidly growing demand for private real estate debt. The fund is comprised of a diversified portfolio of short-term loans secured primarily on residential single family and multi-family properties throughout California. The fund manager, TaliMar Financial, was established in 2008 and has successfully funded over $500 million in loans. Investors in the mortgage fund include high net worth investors, family offices, and private equity funds who are seeking consistent monthly income, the security of real estate, and the tax benefits of a mortgage fund structured as a real estate investor trust.
Disclosure: This advertisement is for informational purposes only and does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can only be made by the Private Placement Memorandum (“PPM”) and related subscription documents. Any investment in TaliMar Income Fund I involves significant risk. You should not enter into any transactions unless you fully understand all such risks and have independently determined that such transactions are appropriate for you. Business Purpose Loans arranged through TaliMar Income Fund I, LLC (DFPI CFL License No. 60DBO-137778).
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