I'd pass pass pass pass and pass on this.....fast
Your loaning money to home flippers with a fixed upside. Sure its first lien, but they were the highest bidder (greatest fool) at an auction and you have to rely on them to have enough margin in the deal while paying a non-bank rate. If things go bad, that first lien turns into expensive foreclosure, ownership, and resale costs.
Disclosure: I am in banking and lived this in 2007, unless the fund can give you a performance history that includes 2005-2010, pass.