I want to share some good news with you about one of my investments. Especially now, friends ask me how they can invest (with less risk) in Florida's very strong real estate market.

Check this out: I've been invested in a fund since 7/17/2003. I just received the latest check, which I reinvested in the fund. It paid out 37.99% (this is not a typo) annualized for the quarter. Here are the CPA-audited quarterly returns (annualized) since I invested:

07/1/03-09/30/03 10/1/03-12/31/03 01/1/04-03/31/04 04/1/04-06/30/04 07/1/04-09/30/04 10/1/04-12/31/04 01/1/05-03/31/05 04/1/05-06/30/05

24.01% 18.80 19.99 21.57 22.03 20.71 31.92 37.99

Here is how they do it:
Basically, the fund makes mezzanine loans to real estate developers and builders in Florida. More specifically, they bridge the "gap" between the builder's equity requirement and the amount available from commercial banks. They work with builders to obtain construction loans from senior lenders for acquisition, development and construction. This helps complete the project's total capitalization by lending up to 75% of the equity needed to fund the project. The fund focuses on residential "for sale" homebuilding projects or the sale of finished building lots to homebuilders.

Here are highlights from the July 15, 2005 letter to investors from the company's president:
* Increase in revenue from $4.2 million to $12.1 million
* Increase in participant (I'm one) distributions from $3.4 million to $9.8 million
* Increase in outstanding loans from $27 million to $75 million (I've rounded the #s).

On a previous letter, he writes, "The close of this quarter marks the completion of four years of operation, and we have exceeded our expectations. The total distribution for the last 16 quarters have returned a weighted average of 23.07%. Participation Units have progressively grown from zero to $55,907,216. We have made 152 loans totaling $119,899,157 of which 82 have been paid in full and 70 are open and current."

Most investors have been trying to make money in the stock market. Most have made very little, or lost money, even after spending thousands of hours on it. Today, investments which earn more than 10% are extremely difficult to find.

This fund has always been very profitable, and I spend no time managing it. Further, I really think it's much lower risk than any company in the stock market, including (rather, "especially"!) all the blue chips. I can't say enough about the management of the company: very smart, successful, and ethical business persons.

The minimum investment is $100,000 for three years. 401(k)'s can be invested as well. If you want to know more, please email wealthkeycontact2 (at) espritus (dot) n e t.

This Web page does not constitute an offer to sell or the solicitation of an offer to buy any securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. Any offers of the securities will be made only by means of a private offering memorandum. Statements on this Web page that are not historical facts and that relate to future plans or events are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The fund's actual results may differ materially from those indicated or implied by the forward-looking statements.