Socotra Capital Review: $332.8M Sold in Six Form D Funds, $94M Lent to Bankrupt LeFever Mattson

What the page covers and what it does not

Two readers land on a search for "socotra capital": someone deciding whether to borrow from it, and someone looking at its funds. They need different documents. For the borrower, the useful records are the lender's published terms, its licences, complaint records and any court record that touches its balance sheet. For the investor, the record is the Form D filings, which describe the offering and nothing else. We kept the two apart below and did not turn any Form D figure into a statement about returns, safety or conduct.

Gaps, stated plainly. The California Department of Financial Protection and Innovation (DFPI) licensee search and NMLS Consumer Access both refused our automated requests on November 8, 2026, so we could not confirm the licences the company prints on its site. CourtListener's search needs a login, so we did not run a docket search beyond the one bankruptcy filing we found and read in full. We did not read Socotra's private offering documents; they are available only to investors. Reviews on Yelp and similar sites were not used.

Part 1: for borrowers

Published terms, read November 8, 2026

The lender's pages are the only source for pricing and underwriting rules, so these are claims, not findings.

No interest rate, point or fee schedule is published on those pages, so a borrower cannot compute total cost from the website. Get a written term sheet and compare it with other quotes; our California hard money lender guide, hard money loan rates page and fix-and-flip loan guide give the market ranges. For another lender read the same way see our Loan Ranger Capital review and Center Street Lending review.

The fix-and-flip page says the loans are available to individuals, trusts, corporations, limited partnerships and IRAs. The borrowers page says it works with foreign investors, ITIN borrowers, trusts, LLCs and IRAs with "No income, financials, or credit minimums required." The home page counters read "$1B+" loans originated and "1K+" transactions funded, while the About and Investors pages say more than 2,000 loans and more than $2 billion; the counters may be animated, so we rely on the About and Investors wording and treat all volume figures as the company's claims.

Licences the company prints, and what we could and could not check

Check these yourself before signing: the DFPI licensee search and NMLS Consumer Access are free, and a licence number that does not match the lender named on your term sheet is a reason to stop.

Official datasets: HMDA and CFPB complaints

We searched the FFIEC HMDA filer lists for 2025 (4,791 filers) and 2024 (4,927 filers) for "socotra" and found no entry in either. HMDA mostly covers consumer-purpose and certain dwelling-secured loans, so a business-purpose hard money lender often does not appear; we did not test why Socotra does not, and a missing HMDA entry is not a finding about the lender. The CFPB complaint database returned 0 complaints for a search of "socotra" across all fields on November 8, 2026. Zero complaints in a federal database for consumer products is weak evidence for a lender whose borrowers are mostly businesses.

The court record that touches Socotra's balance sheet

The most important independent document we found is a bankruptcy court filing in In re LeFever Mattson, Case No. 24-10545, United States Bankruptcy Court, Northern District of California (Santa Rosa), Docket No. 4520, filed August 6, 2026. It is the consolidated debtor's opposition to a motion by Socotra Capital, Inc. to release funds and pay legal fees under a court-approved settlement. These are the debtor's statements in an adversarial filing; Socotra's own motion (Docket No. 4464) was not part of what we saved. On August 12, 2026 Socotra withdrew that motion (Docket No. 4529), stating that Socotra and the consolidated debtor “have resolved the issues and the relief requested by Socotra in the Motion.” For where the bankruptcy itself stands (plan effective May 14, 2026, no investor payout yet), see what happened to LeFever Mattson.

What the filing says, in order:

• At the beginning of the case, "Socotra was the Debtors' largest single creditor, with an aggregate principal amount of approximately $94 million outstanding under loans advanced to the Debtors, plus more than $37 million in asserted accrued interest and fees, secured by 77 properties."
• The committee of unsecured creditors "informally asserted various claims against Socotra, including fraudulent transfer, declaratory relief that Socotra is only entitled to restitution claims to which principles of netting apply, and equitable subordination of Socotra's claims." The filing also says the committee's investigation found that approximately $20 million moved from a LeFever Mattson bank account to the Socotra entities over seven years. Those are allegations and assertions in a filing, not findings by a court.
• After a two-day mediation, a Settlement Agreement dated October 14, 2025 was reached; the court approved it on November 14, 2025 (Docket No. 2852). Under it the debtors sell remaining properties and split net sale proceeds with Socotra property by property, so that "Socotra could recover more or less than 100% of the applicable principal loan balance."
• For the Pinyon Creek properties in Truckee, a bulk sale triggers a separate term: Socotra receives 100 percent of the outstanding principal on the applicable loans. A sale notice of January 27, 2026 proposed a bulk sale to EDC Badger, LLC for $22,250,000; the sale closed March 10, 2026 and Socotra received $10,586,728. That is 47.6 percent of the sale notice price (our arithmetic).
• The live dispute is small next to the loans: the debtor holds $315,597.55 of escrowed rents from the Pinyon properties, Socotra demanded 50 percent, and the debtor says it is not owed.
• On March 6, 2026 the court substantively consolidated the LeFever Mattson estates, KS Mattson Partners, LP and three related entities.

A Santa Rosa newspaper, the Press Democrat, reported on September 26, 2025 that the federal indictment of a principal of those companies, filed May 13, 2025, refers to Socotra as "LENDING ENTITY 1" and says it loaned more than $180 million to KS Mattson Partners between 2011 and 2024, and that Socotra had not been charged with any wrongdoing in that criminal case. The article also quotes a Socotra spokesperson, who said the company had no knowledge of or involvement in the alleged wrongdoing and that "Socotra acted appropriately and in accordance with the law at all times." We report both sides because the court record we read is the debtor's, not a court finding. Nothing in the documents we read says Socotra cannot fund new loans.

What this means for a borrower is narrow. The record shows that one borrower group accounted for a very large share of Socotra's lending and that the lender spent 2024 to 2026 recovering through a bankruptcy. It does not show how Socotra treats ordinary borrowers, and a lender can have a concentration problem and still fund your loan on time. Ask who funds your loan (the company's own balance sheet or a pooled fund), whether that fund is open or closed to new capital, and who will service and, if needed, enforce it.

Part 2: for investors considering a Socotra fund

What the Form D filings show

A Form D is a notice an issuer files with the SEC after it sells securities without registration. It reports the offering size, the amount sold, the number of investors and the exemption claimed. It is not audited, not reviewed by the SEC for accuracy and says nothing about returns, valuation, redemptions or the loans held. We counted the latest Form D or Form D/A for each of six Socotra entities that appear on EDGAR (CIKs 1573807, 1657698, 1792561, 1964998, 2030147 and 2048406); one more EDGAR entity named "Socotra, Inc." is an unrelated software company in Palo Alto and is excluded. Amount sold and investor counts are the filer's cumulative figures as of the filing date.

The latest filing of each of the six claims Rule 506(b), the exemption that bars general solicitation. Sum of the six "sold" figures is $332,847,515 and of the investor counts 1,859 (our arithmetic). Opportunity REIT I reports $125,000 sold and 0 investors in the same filing; we report it as filed. Opportunity REIT II reports $62,500 sold to 125 investors, which is $500 each (our arithmetic), the same as its $500 minimum, with a $6,250 sales commission to ICA, LLC (CRD 145235) for solicitation in Florida and Tennessee. Four of the entities (Socotra Opportunity Fund, Opportunity Fund II, Opportunity REIT I and Opportunity REIT II) ticked the box saying securities have been or may be sold to non-accredited investors; Socotra Fund did not.

How Socotra Fund grew on paper

From April 2013 to October 2026 the reported sold amount grew about 32 times (our arithmetic: $257,524,872 divided by $8,044,673). Two features stand out. The amount sold is identical in the March 2025 and October 2026 filings while the investor count rose from 1,219 to 1,255, so the later filing either counts new investors without adding their money or was only partly updated; the form does not say. And the average sold per investor was $205,199 in the latest filing (our arithmetic), which is an average, not a typical account. Socotra Opportunity Fund's reported total has been $59,761,263 since a March 2025 amendment, with investors moving from 348 to 352.

Two older amendments filed October 16, 2020 repeat the 2019 figures for both funds (441 investors and $105,940,119 for Socotra Fund; 72 investors and $13,115,975 for Opportunity Fund) after July 2020 filings reported higher numbers. We treat the July 2020 filings as the later data and flag the October 2020 pair as inconsistent.

The Opportunity Fund and the timing of Fund II

According to the Press Democrat report of September 26, 2025, an April 2024 Socotra newsletter told investors that "one borrower and its affiliates" held about $40 million of loans in a single pool, the Socotra Opportunity Fund, and that around half of that borrower's loan value was delinquent. The paper reports that Socotra said it planned to close the fund to new capital on June 30, 2024, and a spokesperson confirmed it is closed. The first Form D for Opportunity Fund II was filed July 15, 2024, with $0 sold; its first sale is dated August 5, 2024. We do not know whether the two are related, and the Form D does not say. We did not see the newsletter itself, only the newspaper's description of it. We cannot compare the $40 million with the $59,761,263 Form D figure, because one is loans held and the other is cumulative amount sold.

What an investor can take from the filings: how many vehicles exist, how large each says it is, how many people are in them, and when each last updated. What they cannot take from them: net asset value, delinquency, distributions, redemption terms or whether any fund is open. Those questions go to the private placement memorandum and the fund's reports.

What a reader can do with this

If you are a borrower:

1. Ask for a written term sheet with rate, points, fees, extension terms and default interest, and compare it with at least two other lenders.
2. Look up the DFPI California Finance Lender licence and the NMLS ID printed on your documents.
3. Ask who funds the loan, who services it, and what happens if you need an extension.

If you want to see how other lenders compare, one option is to start from the lenders below.

If you are an investor: read the offering memorandum for concentration limits, the share of loans to related or repeat borrowers, redemption rules and how loan delinquencies are valued before relying on a Form D figure. This is analysis of public documents, not investment, legal or tax advice.

FAQ

Sources, read November 8, 2026: SEC EDGAR Form D and Form D/A filings of Socotra Fund, LLC (CIK 1573807), Socotra Opportunity Fund, LLC (1657698), Socotra REIT I LLC (1792561), Socotra Opportunity REIT I LLC (1964998), Socotra Opportunity Fund II LLC (2030147) and Socotra Opportunity REIT II LLC (2048406), including accessions 0001573807-26-000001, 0001657698-26-000003, 0002030147-26-000001 and 0002048406-24-000001; Opposition of the Consolidated Debtor to Socotra Capital Inc's motion, In re LeFever Mattson, Bankr. N.D. Cal. Case No. 24-10545, Doc. 4520 (August 6, 2026); Press Democrat, September 26, 2025; socotracapital.com home, fix-and-flip, Turbo Close, borrowers, investors and about pages; FFIEC HMDA filer lists 2024 and 2025; CFPB consumer complaint database. This is analysis of public documents, not investment, legal or tax advice.