There are circumstances that allow investing by an individual who is not qualified as an accredited investor. The lesser standard of qualification is called “Sophisticated Investor”. A sophisticated investor is not yet an accredited investor, in terms of income and net worth, yet has the financial literacy, income and experience to understand the risks of investing.
Who Can Participate in Syndications?
We can offer very good returns for our private financiers with a choice of debt or equity, and a choice of senior, preferred or common tranche. For example, a 1st position private lender can earn an annual yield of 10% secured by a Loan to Value (LTV) of 765% to 0%. A 2nd position preferred equity can earn an annual yield of 15% with an LTV of 20% to 25%. A 3rd position common equity member can earn annual yield of 20% with an Equity to Value (ETV) of 10% to 15%.
Our residential property projects require from $50,000 up to about $250,000 each, which we can split into multiple tranches as described above.
Our commercial property projects require from $250,000 up to about $2,500,000 each, which we can split into multiple tranches as described above. If we retain 3rd party hard money or institutional equity financing, then our private financiers will also qualify for that financing. The subject property is the primary qualifier.
We try to structure the financing with equity membership units priced each at least $25,000. We also try to structure fractionalized trust deeds (private lending) so that the lenders all share the same tranche position as co-holders of the note and security instrument, with minimum increments of $25,000. Loans are non-recourse with only the subject property as security for the debt.
Each project and property is different, with its own set of challenges and opportunities. You will know everything that we know about each project and property, so that you can make a fully informed decision.
We can accommodate Self-Directed Individual Retirement Account (SD-IRA) funds. Your retirement funds grow at an accelerated rate and can be secured by a hypothecated lien on the subject property.
Suppose you invest “100” today and a year from now you pull out “130” and you still own the property with net positive cash flow, and the “130” is tax free because it is a refinance loan. You could roll that “130” into the next project and quickly grow your net worth, all backed by solid real estate. Is that an investment that fits your criteria?
We are always looking to build our list of private financiers. We want to work together with you to grow the pie and increase prosperity for society.
If you wish to work with us as a private financier, either as a lender or equity member, then please download our Sophisticated Investor Questionnaire and complete it with the assistance of your attorney or accountant. Return it to us with the contact information of your attorney or accountant, so we can review the information with our attorneys to determine whether and how you can work with us.