If you’re like most private lenders, the majority of your assets are tied up in a few mortgage loans leaving your savings exposed to the risks that are normally associated with lending. In a fund the risk is spread out over many loans in the portfolio. With the fund you get a high-performance investment, managed by seasoned professionals in a fund with assets that are secured by real estate. In many cases your returns are similar or better than your currently receiving with no work required from you.
Who May Participate in the Fund?
Carolina Capital Reserve Fund I is open to accredited investors. In order for an individual or an entity to qualify, they must typically meet at least one of the following criteria:
1. An individual with income exceeding $200,000 or joint income with his or her spouse of at least $300,000, in each of the last two years with the expectation to reasonably maintain the same level of income in the present year;
2. An individual with a net worth exceeding $1 million, excluding the primary residence, either individually or jointly with his or her spouse;
3. An entity that has assets exceeding $5 million that was not formed solely for the purpose of making the investment; or
4. An entity whose owners all satisfy 1, 2, or 3 above.
For more information about the SEC’s requirements and common exemptions, see Regulation D Rule 506 in this brochure, Q&A: Small Business & the SEC.