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Acorn

Private

Funds

We are the leading commercial real estate private funds group.

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Unlocking Opportunities!

Leveraging Our Loan Products for Your Construction Projects.

We are committed to providing sustainable solutions for our clients.

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Who We Are

Acorn Private Funds, LLC, a Washington Limited Liability Company, was formed in 2022 with a mission to provide consultation and private credit solutions to small-sized businesses, real estate investors and real estate developers.


Our business model is to provide short-term Bridge loans of up to 24 months for commercial/investment purpose real estate secured projects. Instead of investing in real estate for uncertain future returns on investments, our financing focused business model generates up-front loan origination fees, loan processing and documentation fees, along with monthly interest incomes. Our private credit solutions are short-term in nature with proven and documented exit strategies (such as refinance with permanent loans, sale of real estates and completion of construction projects) to ensure full repayment of funds. Furthermore, our loan products may also require up-front payment reserves along with sizable down payments or equities. This ensures required interest payments are paid as agreed from “prepaid” interest reserves, mainly funded up-front by each Borrowers.


Acorn Private Funds, with two former bankers with combined 40+ years credit experience and an experienced real estate agent, provides tailored short-term financing solutions to our un-banked and under-banked customer base.


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Our Services

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Acorn Private Funds, LLC targets special niche market of real estate investors and developers in need of short-term or construction financing underwritten and approved based on non-traditional criteria for quick turn around time. For our niche customers, paying higher loan fees and/or interest rates is better than waiting months for traditional bank to review and underwrite.


Time is money and months wasted for “possible” loan approval is a lot of money wasted.

  • Investors Looking to Purchase Investment 1-4 Family Rental Homes.
  • Investors Looking to Purchase Multi-Family (5+ Units) Properties.
  • Real Estate Developers Pursuing Quick Land/Property Purchases.
  • Experienced Developers Requiring 12 to 18 Months Construction Loans.
  • Business Owners Searching for A Bridge Loan to Purchase Owner-Occupied Comm. Real Estate pending Permanent Financing.
  • Commercial Real Estate investors
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Competitive Advantages

What conditions or circumstances put Acorn Private Funds, LLC in a favorable or superior business position than other competitors?

  • Our private credit solutions are secured by commercial/investment real estates. No working capital or business term or business acquisition loans secured by business assets. Strictly real estate secured with maximum LTV of 65-70% (or minimum 30% equity).
  • Our private credit solutions are short-term Bridge loans with verified “exit” strategy (i.e. sale of property, permanent refinancing, completion of projects and etc.). Typical Bridge loan will be for 12 months with extension options for additional fees and proof of solid “exit” strategy.
  • Our loan products offered are very “unique” and are structured to reduce credit risks.
  • Our experienced team have combined 40+ years lending and credit administration experience, not to mention an experienced real estate agent with vast knowledge of real estate market. Commercial lending is in our blood and we know exactly what to look for in a deal for “safe and sound” lending.
  • Unlike traditional lenders or some private lenders, our experienced team is able to turn around for a quick decision within a day. If we can do it, we will expeditiously process and fund on deals and if we can’t do it, we won’t waste any time. We have other resources to refer the deal for other financing options, if needed.
  • Recurring business – most of our targeted customers need quick funds to make more money. Our loan products are tailored specifically for our targeted customers and will result in recurring businesses.
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Core Values

Acorn Private Funds, LLC is the trusted consultation and private commercial credit lender empowering our borrowers to get rich by offering innovative and out of the box lending solutions

Reliability

Unparalleled loan structuring, underwriting and loan funding execution. Our high-touch, personalized service approach means our borrowers’ needs are taken care of every step of the way.

Flexibility

Customized lending solutions with compelling rates and terms.

Alignment

Acorn’s experienced members play an integral part in loan process through project completion, creating a seamless experience for borrowers.

No Time Wasted

Quick turnaround time allowing customers to maximize returns.

Trustworthy

Acorn can be relied on as honest and truthful in every loan we originate

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Market Research

Demand for private credit—which refers to lending to companies by institutions other than banks—has grown significantly in recent years. Unlike most bank loans, private credit solutions can be tailored to meet borrowers’ needs in terms of size, type or timing of transactions.


Amid recession fears and constrained commercial bank lending, which traditionally leads to credit tightness, private credit offers borrowers pricing certainty and speed, which has helped fuel the market’s growth in recent years. The size of the private credit market at the start of 2023 was approximately $1.4 trillion, compared to $875 billion in 2020, and is estimated to grow to $2.3 trillion by 2027.


Private credit has historically offered compelling performance in relation to other segments of the fixed-income market. Since the global financial crisis, when private credit began growing in earnest, direct lending (the most common type of private credit) has provided higher returns and lower volatility compared to both leveraged loans and high-yield bonds.



















1 Bloomberg. As of January 2023.

2 Preqin. As of January 2023.

4 Data represents the period from Q1’08 to Q2’22. Calculated as annualized average returns divided by volatility. Volatility is measured using standard deviation.

5 “Direct Lending” is represented by the Cliffwater Direct Lending Index (CDLI) and is calculated from quarterly data, which has been annualized. “High Yield Bonds” is represented by the ICE BofA High Yield Index calculated from annualized monthly data, except for the loss experience chart, where this is sourced from Moody’s. “Leveraged Loans” is represented by the Morningstar LSTA US Leveraged Loan Index calculated from annualized monthly data, except for the loss experience chart, where this is sourced from Moody’s.





















Private credit may also offer better protection against losses, having demonstrated relative resiliency during the COVID-19 pandemic. Between the outbreak of COVID and the second quarter of 2022, direct lending sustained losses of 1.2%, compared with losses of 1.4% for leveraged loans and 2.7% for high-yield bonds.



















6 Represents average returns during 6 time periods (1Q’09-2Q’09, 4Q’10-1Q’11, 4Q’12-4Q’13, 3Q’16-4Q’16, 3Q’20-1Q’21, and 3Q’21-2Q’22) when rates increased by 75bps+.

7 Represents loss rates for the COVID-to-Date period (Q1’20 to Q2’22). Default and Recovery rates are sourced from Moody’s.

Detailed Description of Customers

Acorn Private Funds, LLC focuses on private credit opportunities that are geographically close and well known to us as we start and grow our lending business. We fund Pacific Northwest real estate loans for a variety of properties and investment needs. We provide funding in the form of private money loans, throughout the Pacific Northwest, including Washington, Oregon, and California. Our fast alternative financing allows investors to close quickly and securely on time sensitive real estate investments, even when conventional lenders turn away or take too much time.









Our focus will be to established real estate professionals or developers in providing the right source for real estate investment, development and construction loans. Many conventional lenders have stringent guidelines that can conflict with property investor or developer goals such as speed, the ability to secure financing for both purchase and renovation and the need to balance profit and taxable income.


Our private loans are a great option for seasoned investors who may not qualify for a conventional loan. Private lending also benefits those who need to not only purchase an investment property but need money for the renovations or those who need quick construction loans. Though some banks or lenders may provide similar loans, the loan approval will usually require a longer processing time, which is not ideal for an investor who wants to jump in and buy properties during a competitive real estate market that demands fast offers.


Additionally, our private loans are ideal for entities and LLCs, allowing those who choose to borrow in entity names for tax benefits or safety reasons to be approved for properties. This is a good option, for example, for landlords who rent multiple properties and want to be protected from any sort of unforeseen legal issues.


Multifamily property owners needing additional time to stabilize and increase occupancy can benefit from our private bridge loans as well as those temporarily experiencing cash flow/occupancy issues and can’t qualify for conventional loans. Our private loan can provide a “bridge” for these borrowers allowing time to stabilize and increase cash flows for permanent conventional loans or for those that need quick financing to beat out the completions to purchase.


Experienced developers in need of some additional capital to complete projects can also benefit from our private funds.

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Investment Opportunity

Acorn Private Funds, LLC is seeking up to 20 potential partners to raise $20,000,000 for proportional ownership interest in a newly formed Acorn Funds I, LLC. Acorn Funds I, LLC will be a Washington Limited Liability Corporation with a sole purpose of acting as a warehouse line of credit lender for Acorn Private Funds, LLC.


A warehouse line of credit agreement for the total raised funds will be executed between Acorn Funds I, LLC (“Lender”) and Acorn Private Funds, LLC (“Borrower”) with the following terms:

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Lender: Acorn Funds I, LLC

Borrower: Acorn Private Funds, LLC

Loan Amount: Total Funds Raised

Maturity: 2 years

Interest Rate: Greater of 5.00% or 60% of the interest rate Acorn Private Funds, LLC charges its

Borrowers.

Loan Payments: Quarterly Interest Only payments months with Principal Payment as Acorn Private

Funds, LLC’s loans to its Borrowers pay off.

Loan Origination Fee: 25% of Loan Origination Fees Acorn Private Funds, LLC charges its Borrowers.

Collateral: Assignment of Notes and Deeds of Trust securing Acorn Private Funds, LLC

originated loans.

Other Conditions: Acorn Private Funds, LLC shall maintain total cash reserves of not less than

$250,000 at all times. (**$250,000 is equivalent to 3 months of interest on

$20,000,000.00 loan at 5.00% interest rate**)


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With the warehouse line of credit structure between Acorn Funds I, LLC and Acorn Private Funds, LLC


  • All partners investing in Acorn Funds I, LLC will have guarantee that its promised returns would be honored and in case it isn’t, Acorn Funds I, LLC will have rights to liquidate its assigned promissory notes and Deeds of Trust for repayment.
  • With the interest rate set at “greater of 5.00% or 60% of interest rate Acorn Private Funds, LLC charges its Borrowers”, Acorn Funds I, LLC potential interest income could be higher than 5.00% but not less than 5.00%. (An example, for a construction loan where Acorn Private Funds, LLC charges 9.99% interest rate to its Borrowers, the return to Acorn Fund I, LLC is 5.99% instead of 5.00%.)
  • In addition to interest income, Acorn Funds I, LLC will receive 25% of all loan origination fees assessed by Acorn Private Funds, LLC for additional income opportunity.


The same warehouse line structure is beneficial to Acorn Private Funds, LLC as it is only paying interest and loan origination fees on actual advanced funds only.


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Mission Statement

To become a top tiered private lending company, unlike most banks, with unique and proven credit solutions tailored to meet borrower’s needs in terms of size, type or timing of transactions. Our mission is to provide credit/loan solutions that might not be otherwise be available through traditional banks.


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Principal Members

Sunny Kim

Member

Anna Li

Member

Mr. Kwi (Sunny) Kim, Founding Member, spent more than 23 years in community banking in the Puget Sound Region in underwriting, documentation/processing, reviews/audits, credit administration and special assets management.

At the age of 38, Mr. Kim became the Chief Credit Officer of Plaza Bank, a community bank in Seattle, WA, under the mentorship of Mike Clabby, Joe Ward, Dale Anderson, Mike Anderson and many more.

Furthermore, Mr. Kim has valuable experience in working with Expert Witness and Litigating Consulting firms for credit and documentation reviews of failed financial institutions.

Most recently, Mr. Kim served as the Chief Credit Officer of UniBank, a commercial bank headquartered in Lynnwood, WA.

During his banking career, credit risk, portfolio and special asset management has been his primary focus, including non-QM mortgages, commercial, real estate, profession, SBA credit, USDA B&I credit segments.

Ms. Anna Li, Founding Member, is a top selling agent, with Coldwell Banker Danforth, specializing in commercial and residential real estate, assisting buyers from Seattle to Bellevue, WA area. With over 15+ years in the business she has managed to sell and list over 100+ beautiful luxury homes, working internationally with investors she has made a mark with bringing her clients very high returns. She is genuine, persistent and offers a high level of phenomenal expertise in anything real estate.


Ms. Li is the perfect agent for finding you everything you need in your dream home, or helping build your business internationally in Asia and Europe.


Jae An

Member

Mr. Jae An, Founding Member, is a highly qualified and accomplished mortgage and commercial lending executive offering 18+ years of experience. Mr. An is a former President of Quintet Mortgage, a local mortgage firm with over 130 employees and an annual loan production exceeding $500MM. Mr. An’s secret to success is very simple and it’s his commitment to exceptional customer service that starts with how he treats his most valuable customers, EMPLOYEES. Focus on betterment of each employee with opportunities for training, career advancement, mentoring and financial success.

Most recently, Mr. An was the SVP/PNW Regional Manager of Fidelity Lending Solutions, Inc. dba Wholesale Mortgage Banker and prior to that, Mr. An, as the SVP/Director of Mortgage Department, spearheaded the development of new mortgage department at UniBank, a commercial bank headquartered in Lynnwood, WA. Mr. An is well versed in retail lending, commercial lending, Government Guaranteed lending and mortgage lending (QM and Non-QM).

Mike Hahm

Member

With 30 years of experience in IT and Mobile sales, marketing, planning, partnerships, and operations, I am a seasoned professional with a proven track record of delivering impactful results. I began my career in Samsung's US trading business in Seoul during the early 1990s. Later, I was promoted to Korea branch manager of IPC Singapore, where I marketed PCs and POS nationwide. I was also a founding DAOU Data IT company member and contributed to its IPO KOSDAQ in 1999. In 2008, I joined SK Telecom and invested in a wireless company called XCE. We successfully developed business with Germany Siemens home wireless service, launched the HELIO wireless carrier brand in California, and partnered with China Telecom to provide a 3G platform in China. Through those ventures, we eventually entered the IPO COSDAQ in 2009.

David Seo

Member

Mr. Kilseok David Seo, Founding Member, epitomizes versatility in entrepreneurship. With over 30 years of successful small business management across diverse industries, his journey is nothing short of remarkable. His journey began with a B.A. in Accounting from Penn State University in 1987. Armed with knowledge, he embarked on a path that continues to be successful. Mr. Seo’s experience covers various industries such as real estate, accounting, construction, retail, restaurants and financing.

Mr. Seo is the CEO of well-known Seattle printing companies and the managing member of a real estate development/construction firm. Mr. Seo also co-manages restaurants/cafes in Washington, Alaska and Hawaii. Lastly, Mr. Seo is also heavily involved in his community through Community Church of Seattle, a testament to his deep-rooted values and desire to make a positive impact.


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