Discover a reinspired take on a Mortgage Note Investment Fund designed to prioritize steady, monthly returns. Passive income. Performance. Speed to market and flexibility. Enjoy passive income with top-tier performance, rapid market entry, and unparalleled flexibility. Invest in your future today.
Target Returns
8%-12%
Distribution Frequency
Monthly
Minimum Investment
$25,000
Lockup Period
2 Years
Fund Overview
Fund Strategy
BCF Fund II is built on a foundation of trust, expertise, and innovation. Our investment strategy is designed to deliver stable, high-yield returns and provide accredited investors with a unique opportunity to diversify their portfolios and achieve their financial goals.
The Fund’s unique structure enables it to be nimble and adaptive to any market, ready to quickly capitalize on profitable opportunities while continually enhancing its overall performance.
The Fund invests in first-position residential mortgage notes, with a focus on single-family homes in communities across the United States. Our investment mix includes a robust percentage of performing notes to ensure steady returns, supplemented by re-performing, and non-performing notes for higher yield potential.
Investment Strategy Factors:
High Quality Sources
Buy at discount by buying in bulk. By low performing notes with the intent to work out to generate cash flow, but are a solid investment for when that isn’t an option.
Rigorous Due Diligence
Each asset undergoes a thorough evaluation process to mitigate risk and maximize potential returns. Our expert management team leverages over 40 years of industry experience to identify high-quality opportunities and strategically manage investments.
Risk-Managed Diversification
By spreading investments across geographies and performing, re-performing, and non-performing notes, we minimize exposure to any single market or economic condition while maximizing potential returns.
Active Portfolio Management
With a hands-on approach, and advanced analytics and technology, we continually evaluate and adjust our holdings to ensure optimal performance in an ever-changing market.
Details
Highlights
No Management Fees
No Preferred Return
Passive Investing
Fund Structure
Distribution Splits
How returns work
Monthly returns are based on net profit, referred to as Excess Distributable Cash (EDC). The monthly Fund Return is expressed as an annual cash-on-cash figure and calculated as:
Fund Return = Net Profit / Funds Deployed * 12
Tiered Profit-Sharing Structure
Tier 1
The first 8% Fund Return is split 80% to Investors and 20% to the Manager.
Tier 2
The remaining EDC above 8% is split 50/50 between Investors and the Manager, up to each Class’s Annual Cap.
The percentage Investors receive after splits is referred to as the Investor Return, expressed as an annualized cash-on-cash return.
Example Scenarios and Annual Caps
- A 10% Investor Return requires a 15.2% Fund Return.
- Once Class C caps out at 10%, remaining EDC is split 50/50 between Class B and the Manager until Class B reaches its cap of 12% Investor Return.
- The Class B Cap (12%) is reached at a 19.2% Fund Return, or less depending on the proportion of Class B to Class C investments.
- Any further available EDC will be distributed to both classes until Annual Cap is reached for the calendar year.
Additional Notes and Definitions
- Caps are only for the calendar year and reset every New Year
- All percentages are annualized for ease of understanding.
- EDC
- Fund Return
- Investor Return
- Monthly Cap
- Tiered Progressive Splits
Investor Return
Investor Return
Investor Classes
Minimum Investment
- $25,000 or $250,000, depending on Class
- Shares in $10,000 a increments
- Automatic Class upgrade upon reaching the threshold (automatic reinvestment or additional contributions
Deposit Maximum
- A percentage of commitment may be required as a deposit upon signing documents.
- Held until your investment is deployed (up to 6 months).
- If no opportunity arises within 6 months, you may withdraw or continue waiting.
Annual Cash-on-Cash Cap
- Distributions are subject to a maximum payout limit for each calendar year.
- Excess returns beyond the cap are distributed to “true-up” and reach the cap for the current calendar year.
Investor Classes
Investing Schedule
Frequently Asked Questions
BCF Fund II is open to Accredited Investors only.
Individual Accredited Investor Requirements:
- Income: $200,000+ annual income ($300,000 joint) for the last two years.
- Net Worth: $1 million+ in net worth (excluding primary residence).
- Professional Criteria: Investment professionals with a Series 7, Series 65, or Series 82 license in good standing.
Accreditation can be verified in two ways:
- Use Our Third-Party Verification Service – A quick and secure process (small fee applies). This certification is portable, meaning you can use it for other investments as well.
- Upload Existing Verification – If you already have an accredited investor certification, simply upload it to our investor portal.
BCF Fund II offers two investor classes, each with different return caps and investment thresholds:
| Class | Return Cap | Minimum Investment | Max Deposit Requirement |
|---|---|---|---|
| Class B | 12% Annualized | $250,000 | 10% |
| Class C | 10% Annualized | $25,000 | 25% |
Important:
- If you invest through multiple legal entities, your total combined investment determines your class eligibility.
- Reaching higher investment levels will automatically upgrade you to the next class.
Investing in BCF Fund II is a structured, personalized process to ensure a great fit for both parties.
- Create a Portal Account – Register to access fund materials and submit required documents.
- Meet with Us – We personally meet with all potential investors to confirm a mutually beneficial fit.
- Complete Paperwork – Sign and submit investment agreements through the secure Investor Portal.
- Verify Accredited Status – Use our third-party service (small fee) or upload an existing verification.
Every investor is personally vetted to ensure alignment with the fund’s strategy.
Once you complete the investment process, here’s what to expect:
- Deposit Funds – Send initial deposit via ACH or wire (if applicable).
- Capital Deployment – Your funds will be deployed within 6 months of deposit.
- Capital Call – When we’re ready to deploy, we’ll request any remaining balance, due within 10 business days.
- Additional Investments – Investors can add more capital on a first-come, first-served basis.
Yes! BCF Fund II welcomes retirement account investments.
- We provide required reporting for IRA/401(k) custodians, including year-end position verification.
- You can invest personally & through your retirement account, with a combined minimum of $25,000 across entities.
 Grow your retirement wealth with institutional-quality real estate investments.
Investors receive monthly distributions, subject to a 3-month delay for initial cash flow stabilization.
- Monthly Payments: Distributions begin after a 2-month delay, with the first two months paid upon exit.
- True-Up System: If returns fluctuate, excess funds may be used to balance prior months.
- Payment Method: Distributions are sent via ACH transfer to your designated account.
Reliable, structured payouts with a system designed to ensure fairness across investment periods.
Investing in BCF Fund II is a structured, personalized process to ensure a great fit for both parties.
Create a Portal Account – Register to access fund materials and submit required documents.
Meet with Us – We personally meet with all potential investors to confirm a mutually beneficial fit.
Complete Paperwork – Sign and submit investment agreements through the secure Investor Portal.
Verify Accredited Status – Use our third-party service (small fee) or upload an existing verification.
🔹 Every investor is personally vetted to ensure alignment with the fund’s strategy.
Yes! You can reinvest all or a portion of your monthly distributions.
- Manage your reinvestment preferences directly in the Investor Portal.
- Adjust reinvestment amounts anytime based on your strategy.
Reinvesting can maximize your compounding potential and grow your position in the fund.
Exiting BCF Fund II requires at least a 2-year commitment from your initial deployment date (not including deposit).
Early Withdrawal Options:
- Early Withdrawal before 2 years: A 5% early exit penalty applies (if approved).
- Standard Exit Process: Notify us of your intent to withdraw, and we will work to return capital within 90 days, as best as possible.
How is your capital returned?
- A new investor may replace your position in the fund.
- BCF may buy out your position directly.
- If necessary, we may sell assets, but only if it does not negatively impact the fund.
BCF Fund II uses a performance-based compensation model, meaning the Fund Manager earns only when investors profit.
- No Management Fee – Unlike traditional funds, we charge zero ongoing management fees.
- Profit-Based Splits:
- The first 8% return is split 80% to investors, 20% to the manager.
- Any returns above 8% are split 50/50 between investors and the manager.
 Why this benefits investors:
- The Fund Manager is incentivized to maximize returns.
- Compensation is tied directly to cash flow and performance, not fees.
Unlike funds with a fixed Preferred Return, BCF Fund II remains flexible, allowing us to adapt to market conditions and maximize opportunities.
- Fixed Preferred Returns can lock funds into outdated expectations, making it difficult to pivot as markets change.
- Without this constraint, we can pursue the best opportunities available instead of passing on great deals that don’t fit a rigid model.
- Our profit-sharing structure still ensures that investors receive priority distributions before the Fund Manager earns a share of excess returns.
Bottom line: This flexibility gives us the ability to navigate changing markets effectively and optimize returns for investors.
Yes! The Investor Portal provides 24/7 access to key investment details, including:
Documents – Subscription agreements, tax forms, and fund updates.
Reports – Performance summaries, quarterly updates, and statements.
Contributions – Track your capital deposits and reinvestments.
Distributions – View payout history and upcoming distributions.
🔹 Everything you need, all in one secure, easy-to-use platform.
Yes! The Investor Portal provides 24/7 access to key investment details, including:
- Documents – Subscription agreements, tax forms, and fund updates.
- Reports – Performance summaries, quarterly updates, and statements.
- Contributions – Track your capital deposits and reinvestments.
- Distributions – View payout history and upcoming distributions.
Everything you need, all in one secure, easy-to-use platform.