Assisting Borrowers–One Note At a Time, Two Case Studies

Q&A from the Webinar:

Q. What is the minimum investment?

A. The minimum investment is only $2,500.

Q. Will you spend a little time on payment returns? Understand you are targeting 8% , do you see this going up or down?

A. Per SEC guidelines, we must be cautious making forward looking statements, but what we can say is we spent an extensive amount of time modeling the performance of the fund and we are confident in our ability to meet our targeted returns. If we perform better than anticipated, we can increase the dividend or provide an additional dividend to investors.

Q. What hedge do you take to protect yourselves from the worst outcomes?

A. Our team is heavily focused on risk mitigation and being proactive versus reactive to any changing landscape, whether it be economical, political or on an asset level basis. Some examples of measures we take include:

          i.     Running title reports which are reviewed by attorneys to validate lien position of the debt.

          ii.     Sending multiple companies to properties to perform exterior visual inspections

          iii.     Obtaining property insurance on a property to protect our investment

          iv.     Bidding based on the situation which provides the worst-case scenario

          v.     Factoring in economic risk, for example we are currently pricing in 20% reductions in home values over the next 12 months into our bids.

Q. Are all the properties in a certain geographic area or is there a diversity in the portfolio?

A. We make sure we have a broad and diverse portfolio. Our team has acquired notes in 42 different states.

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