Discipline is the primary component to a fund’s sustainable performance. Being disciplined is something everybody talks about but it’s far more difficult than it seems. 




Discipline is easier said than done. Saying “yes” to a loan request feels good because it brings in money to the Fund and saying “no” doesn’t. It is very easy to get carried away and respond immediately, for this reason an experienced and disciplined Manager is critical. Although having real estate experience is very important to manage a Private Mortgage Fund, without discipline it’s meaningless. 




Knowledge and skills do not guarantee the fund manager’s success. Discipline makes skills and knowledge effective. The difficulty lies in the fact that discipline does not show up on a fund manager’s resume. The Investors must look for it indirectly through a Manager’s history of performance during challenging conditions.




A successful manager has a team and a plan. A well-selected team of professionals with a strategic business plan that identifies the fund's purpose. The strategic plan must define what the Fund will accomplish and how it will happen.




Manger’s strict underwriting disciplines are the backbone of the fund. Some Investors might have the tendency of vetting past fund’s performance but making an evaluation of the Manger and its team is crucial for the fund’s performance.




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