IMH Secured Loan Fund, LLC filed its 10-K last week and it's not pretty. I have not read the entire document, but anyone that bought or sold shares in this company should invest the time to wade through the 10-K. There are many points in the 10-K that concern me and that I could reference, but I don't want to take important information out of context. I will, however, note that IMH posted a non-cash charge of $323.2 million in 2008 to reflect the fair value of its portfolio. This amount was nearly half the company's loan assets. There are 'going concern' disclosures for the company and its manager. Previous company filings, but not the 10-K as far as I have read, had the follow motto prominently displayed:
This rule no longer applies, as the market has obliterated it. I plan to read through this report in more depth later this week, and I am curious to see what IMH owns and what loan-to-value ratio it used on its land and development loans. Original LTVs of 60% on raw land in Arizona, Nevada and parts of California (Inland Empire, Central Valley) indicate trouble, but I need to verify, not speculate.
Rule 1: Don’t lose the money.
Rule 2: Don’t lose the money.
Rule 3: Don’t forget Rule 1 and Rule 2.