Invest
1
Membership Interests Trading Restrictions
The Fund’s Membership Interests are not publicly traded and have restrictions on sale, transfer, or disposition.
2
Investment Commitment Duration
Members commit to investing for at least 24 months; early withdrawal is possible only in cases of Undue Hardship, subject to Fund Manager approval.
3
Withdrawal Terms and Limits
After 24 months, Members can request withdrawals with 90 days’ notice, limited to 25% of their Capital Account per quarter.
4
Redemption Policy
The Fund will redeem Membership Interests based on cash flow, financial condition, and loan assets.
5
Impact of Returns on Member Decisions
Members are likely to stay if the Fund meets its Preferred and Annual Target Returns.
Risk Management
Asset Independence
Fund assests aren’t tied to stock market, politics, or real estate trends. Stocks carry market, economic, inflationary, policy, regulatory and tax risks.
Diverse Portfolio
Diverse assets offer varied borrower, collateral, loan term and location exposure.
Professional Management
Loans are professionally managed for collections, taxes, insurance and defaults.
Compliant Underwriting
Underwriting follows common sense and legal standards.
Risk Mitigation Strategies
Prepayment penalties and loan duration staggered to reduce reinvestment risk.
Interest Rate Protection
Short-term loans (1-3 years) limit exposure to interest rate hikes.
Capital Allocation Limit
No single loan can exceed 10% of the Fund’s capital once it hits $20 million.
Tax Advantages
Tax Advantage for HNWI and UHNWI
The Fund offers preferential tax treatment for high net worth individuals (HNWI) and ultra high net worth individuals (UHNWI).
Substantial Asset Holding in Sub-REIT
The Fund plans to hold most assets in a Sub-REIT (Subsidiary Real Estate Investment Trust).
Tax Deduction Opportunity (Section 199A)
Section 199A of the 2017 Tax Cuts and Jobs Act allows a 20% deduction on qualified Real Estate Investment Trust (REIT) dividends.
Benefit of REIT Dividends
REIT dividends received by the Fund qualify for this deduction.
Tax Rate Impact
With the full deduction, the effective tax rate can be reduced to 29.6% from the maximum rate of 37% in 2024.
Tax Savings Example
An Investor earning $100,000 from the Fund, eligible for the full deduction, could save an estimated $7,400 in taxes.
