Risk Disclosure

Read this before committing capital.

All private real estate loans carry risk, including risk of partial or total loss of principal if the collateral value declines or the borrower defaults. Loans are secured by recorded first-position liens and title insurance, but are not FDIC-insured or guaranteed. Past performance does not predict future results.

Specific scenarios

• Borrower default. If the borrower stops paying, the closing attorney initiates foreclosure. In a 1st-lien position at ~76% LTV, a meaningful equity cushion typically protects principal. It is not guaranteed.
• Property value decline. A sustained drop in the NC residential market could erode your equity cushion. For the current note, a decline of more than roughly 23% of the AS-IS value would be required before principal is directly at risk.
• Title defect. A title insurance policy from a recognized insurer covers losses from title defects discovered after closing. You are named as a loss payee.
• Operator fraud. All funds flow through the closing attorney's trust account. You never wire directly to the operator.
• Liquidity. Private notes are illiquid. Expect to hold the note to maturity, refinance, or sale of the underlying property.

Your responsibility

Consult your own attorney, CPA, or fiduciary advisor before lending. We are not your advisors. If you cannot accept total loss of principal in a stress scenario, do not lend.

This is not a solicitation of a security. Private real estate loans only.