Dear Valued Investor,

As an important part of the Colonial Impact Fund II (the “Fund”) family, we are pleased to share with you the quarterly investor newsletter from Q1, 2021. The Fund has completed its 24th full quarter of operations.

With the Fund wind-down in process, brought on by the market conditions associated with the covid-19 pandemic, assets under management were just over $5.2MM at the end of Q1, represented by the total unpaid principal balance of loans held plus the value of the real estate owned by the Fund.

The Fund’s primary disposition model is to sell individual assets to the downstream retail buyer network. Buyers purchased 54 assets which in part contributed to the Fund’s 4.06% quarterly return, and which also created a “return since inception” of 10.49% (both annualized figures). The average acquisition price per asset in Q1 was approximately $74,000 on 11 assets.

We will continue monitoring loss reserves, adjusting asset valuations, seeing an increase of borrower defaults, and otherwise continued slowing of overall income to the Fund. All of this, and other factors, will have significant and ongoing implications to the Funds operations, performance, and investor distributions.

We are assessing operations and taking the steps we deem prudent and important, in our best assessment of the order of their importance to safeguard, preserve and protect your investment to the best of our ability. The Fund is no longer accepting new investor capital or new redemption requests from existing investors.

These unprecedented market conditions will require a significant amount of patience from all stakeholders, including borrowers, vendors, investors, and managers.

Thank you for your continued trust and confidence.

Ryan Parson, MBA, CFP®, ChFC
Director-Investor Relations
[email protected]

Neither this document nor its contents are an offer to sell or distribute securities in any jurisdiction.

Ryan Parson
Director of Investor Relations at Noteschool
Mr. Parson has more than 20 years of experience in the financial services, insurance and real estate industries. He is actively involved with many facets of the nationwide real estate space today including property rehab, acquisition of REO and institutional paper, both performing and non-performing, buy and hold rental properties, seller financing distinctive properties, and raising private and institutional capital. He employs unique approaches that involve complementary strategies designed to unlock multiple profit and revenue streams for each investor. Ryan holds undergraduate degrees in finance and insurance as well as an MBA from Drake University. In addition, Ryan holds CFP®, CLU, ChFC, LUTCF and CASL designations. In his role at Colonial Capital Management, Mr. Parson’s primary responsibilities are capital fund-raising and investor relations.