Understanding Loan Performance Types
How Trusted Income Fund classifies real estate debt to balance risk and reward. Every loan we manage falls into a defined performance category, giving investors a clear, educational framework for understanding where their capital is deployed.
The Three Loan Performance Classifications
As a 506(c) SEC-registered fund, Trusted Income Fund classifies every loan in its portfolio along a performance spectrum. Understanding these classifications helps investors evaluate the risk and return profile behind each position the fund holds.
Performing Loans (PL)
Current, paying-as-agreed loans that provide steady, predictable cash flow to the fund through scheduled interest payments from borrowers in good standing.
Sub-Performing & Re-Performing Loans (RPLs)
Loans returning to good standing after modification, offering enhanced yield potential as borrowers resume consistent payments — often supported by our affiliated mortgage lending business, which helps these borrowers refinance into longer-term loans and recover fund capital.
Non-Performing Loans (NPLs) & Distressed Debt
Loans acquired at a discount to their outstanding balance, providing workout or foreclosure upside as the fund pursues structured resolution strategies to recover and grow principal.
Why Every Loan Category Rests on the Same Foundation
As a 506(c) SEC-registered fund, Trusted Income Fund is built for accredited investors who want to understand exactly what stands behind their capital. Whether a loan is performing, sub-performing, or non-performing, it is underwritten against the same structural protections before it ever enters the portfolio.
Our affiliated mortgage lending business plays a key role in that discipline. It originates high-quality loans at the outset, and when a borrower's loan matures or needs to be restructured, that same lending team works directly with the borrower to refinance into a longer-term loan — helping the fund recover its capital in an orderly way rather than relying solely on default remedies.
Consistent, reliable income
Every loan in the fund is underwritten to produce steady, scheduled interest payments. Historically, this disciplined approach to origination has generated 20% annualized returns for our investors, regardless of which performance category a given loan falls into.
Secured by real estate
Each loan is collateralized by a recorded lien against real property, and we lend a maximum of 75% of the property value. That built-in equity cushion gives the fund a meaningful margin of safety if a borrower's circumstances change.
Insured by property insurance
Borrowers are required to maintain property insurance covering the collateral for the life of the loan, adding a further layer of protection for the fund's capital against physical loss or damage to the underlying asset.
Underwriting Discipline, Proven Performance
Every loan across our performing, sub-performing, and non-performing categories is underwritten against the same conservative standards. As a 506(c) SEC-registered fund, Trusted Income Fund maintains strict leverage limits and a disciplined capital recovery process that together have supported strong, consistent results for our investors.
75%
Maximum Loan-to-Value
We lend a maximum of 75% of the property value.
20%
Historical Annualized Returns
Historically we have generated 20% annualized returns for our investors.
Refinance Pipeline
Capital Recovery
Our affiliated mortgage lending business originates high-quality loans and helps recover fund capital by assisting borrowers with refinancing into longer-term loans.
Common Questions on Loan Performance & Risk
Answers to what accredited investors most often ask about how we classify, underwrite, and manage risk across each loan performance category.
Questions About Loan Performance Categories?
Our investor relations team is available to walk you through how Performing, Sub-Performing & Re-Performing, and Non-Performing loan categories are underwritten within Trusted Income Fund's portfolio, and how each is secured by real estate collateral.
Regulatory Disclosure
It's a 506C SEC registered fund. Trusted Income Fund lends a maximum of 75% of the property value across all loan performance categories, and has historically generated 20% annualized returns for our investors through disciplined, collateral-backed underwriting. Our affiliated mortgage lending business helps originate high-quality loans and supports capital recovery by assisting borrowers with refinancing into longer-term financing.
Ready to Diversify with Secured Real Estate Debt?
Speak with our team about which loan performance strategy fits your portfolio.
Trusted Income Fund is a 506(c) SEC-registered fund built for accredited investors seeking dependable, real-estate-secured income. Our affiliated mortgage lending business originates high-quality loans and works directly with borrowers to refinance into long-term financing, helping the fund recover and redeploy capital efficiently across every loan performance category.
