Partnership Offering

We are excited to announce 15PREF is extending an opportunity to partner in real estate loans that are in default due to monetary or maturity deficiencies of the underlying note. This venture will allow our partners an opportunity to earn a significant Return on their Investment (“ROr), while we only earn on a performance basis, without any upfront or ongoing fees. 15PREF is convinced that this product will generate significant revenue for our partners and as a result 15PREF is offering a 15% annual hurdle.

Non-Performing Loans (NPLs)

Non-performing loans are loans (secured by a real estate collateral) that have been in default for a certain period of time.

NPL Market

NPL Funds have emerged as one of the most attractive investments in the current financial environment that outperform traditional fixed income opportunities.

What Makes Us Different

ADVANTAGE

BENEFIT

Fund only invests in loans that were originated by our Parent Private Money Lender, Tower Fund Capital and/or its affiliates

Since we only invest in loans originated by Tower Fund Capital, intimately familiar with the initial underwriting of the loan, borrower due diligence and strength of our loan documents

Fund’s loans are both business use loans and non-owner occupied

Foreclosure can be initiated as a Business Loan, rather than owner-occupied primary residence, which can expedite the foreclosure process

Fund’s loans are appraised by 3rd party licensed providers, and we only lend at or below 65% “as is” Loan to Value (“LTV”)

A correct value is established, which can allow for significant preservation of equity and larger profit margin

Enhanced Credit Guarantees by all borrowers, which include (i) Personal Guarantee, (ii) Confession of Judgement (in states where allowed), and (iii) Pledge of Equity in the Borrower Entity

(i) Personal Guarantee – Enables to pursue guarantor personally for any deficiency in our recovery.
(ii) Confession of Judgement – This enhancement allows us to enter a Judgment with the court against the Guarantor and to start collecting on all assets (i.e. including bank accounts held by guarantor)

(iii) Pledge of Equity in the Borrower Entity – This process allows us to conduct a Non-Judicial Foreclosure which can expedite the time which Lender can conduct an auction to foreclose on the shares in the Borrower Entity

Tower Fund Capital purchase an Option to sell all defaulted loans to Axy Wrap, a 3rd Party aggregator, and charges borrowers a .5% Fee at origination of the loan

In the event the loan goes into default, Tower Fund Capital will exercise the Option to sell the loan at the full unpaid loan balance, which allows us to recapture our full equity position. All of our loans have this enhancement and it allows us to pick and choose which loans to foreclose on

How It Works

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legal entity

Investment Partner forms an SPV (Special Purpose Vehicle) entity. Investment Partner is a 100% owner of this entity.

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asset purchase

Partners purchase 100% of the note in an Investment Partners SPV. Fund will provide 10% of equity and Investment Partner 90%.

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npl management

Fund will manage the NPL to bring it to a successful completion either through borrower payoff, foreclosure or sale of the property.

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transaction completion

Upon completion, no longer than 12 months since asset acquisition each partner will receive 15% Preferred Annual ROI on their investments. Additional profit will be divided 50/50 among partners.

example


  • Loan Amount $1,000,000.00
  • Partner(s) Contribution $1,000,000.00
  • Loan Default Rate 24.00%
  • 1 Year Default Revenue $240,000.00
  • Partner(s) Preferred Rate 15%
  • Partner(s) Preferred Revenue $150,000.00
  • Loan Revenue After Partner(s) Payout $90,000.00
  • Partner(s) Profit Share Rate 50%
  • Partner(s) Profit Share Revenue $45,000.00
  • Partner Total Revenue $180,000.00
  • Partner Total Rate of Return 20.00%
advantage benefit
Partner(s) owns 100% of the loan This gives a full control of Partner(s) investment
Fund participates in the loan with its own equity Fund has skin in the game
15% Preferred Return on Investment Fund will not receive any payments until Partner(s) meet the 15% minimum threshold on their investment
Partner(s) owns 100% of the collateral

Program Risks

Pros

  1. An enormous upside in collateralized real estate debt investment
  2. Risk score is low with high ROI
  3. Financial risks are minimal

Cons

  1. Timeline, which might be longer than anticipated

How To Join

Establish Equity Commitment

Establish an SPV

Sign Participation Agreement

Once the above steps are completed, the Fund will provide the deal flow and management within the first 30 days of signing a Participation Agreement

Team

OVER 100 YEARS OF COMBINED EXPERIENCE

Contact Us

ADDRESS

1325 Avenue of the Americas,
28th Floor,
New York, NY 10019
MON - FRI: 09:00am - 5:00pm

CALL US NOW

646.564.3499

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