MORTGAGE FUND

This is not an offer to sell or a solicitation of any offer to buy shares or memberships. Offer is made only through the Prospectus. Read it carefully before investing.

American Mortgage Acceptance Corporation (AMAC) is the manager of American Mortgage Fund, LLC, a California Limited Liability Company with an authorized capital of $50,000,000.00. The fund was formed to invest in real estate secured mortgages.

The primary advantage of investing in a mortgage fund is diversification of risk. By owning shares in a mortgage pool (“the Fund”) rather than investing in a single loan, an investor’s risk is spread over a larger number of loans. A default of one loan in the Fund does not cause a significant risk to the overall capital of the investors in the fund in that a single loan will represent a small fraction of the fund’s investments, whereas a default in an individually owned note results in completely different scenario and can cause some headaches for the investor.

New shares are sold in the mortgage fund to fund new mortgage loans. Monthly distributions are based upon the “cash available for distribution” divided by the number of shares and passed through to the investors on a monthly basis. The daily share value is computed by determining the current value of the assets of the fund and dividing that amount by the number of shares outstanding.

A monthly Statement of Account is sent to each investor with their monthly payments and at year end an IRS K-1 form is issued in connection with the Fund’s annual tax return. Investors may elect to reinvest monthly payments and “compound” their investment by purchasing additional shares in the fund.

Term: Minimum initial term - 24 months
Average Yield: 10%

For further information contact the Investor Relations Department of AMAC for a Prospectus.

You may also request info on trust deed investments.