An investor purchases units of Coast Capital Income Fund at $1,000/unit. The Fund then lends the money out to borrowers. Borrowers make interest payments to the fund each month, and the Fund pays out interest to the investors. The Fund contains a large number of highly diverse trust deed loans as security for the investment, similar to a “mutual fund” of loans.

The Fund’s target annual yield is 10%, which is 2.5x the national six-month CD average*. The return is based on the Fund Manager’s performance of an affiliate investment fund. The fund is designed to provide investors with a consistent and impressive rate of return, either for income generation or tax-deferred investments such as 401K, IRAs and pension plans.

As of December 31, 2007, the portfolio average LTV is 60.23% of the original appraised values, ensuring an excellent margin of security.

For example, if a commercial property is appraised at $1,000,000, our average loan would be $602,300 for that property value. The conservative loan to value means a large equity cushion (in this case over 39%) exists for the loan. Our management team also personally visits and reviews every property for the Fund before we commit a penny to it.