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Home • Investor
Suitability •
Glossary |
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In addition to
Investors with sufficient risk tolerance, we only
want to deal with Investors who have realistic
expectations. Based upon our study of wealth in
America, we believe that developing true wealth is
a step by step process more like climbing a set of
stairs rather than pole vaulting. While we are well
aware of the exception to this principle, during
the "dot.com" investment bubble of the 1990's,
where investment time frames were measured in days
rather than in years, we are also aware of the fact
that like many beginning pole vaulters most of
these Investors crashed back to the ground in the
following "dot.bomb" bust. Investing in Mortgages
won't make anyone rich over night or even in
several years, but an Investor with a long term
"stair step" approach to Mortgage investment can
develop a substantial portfolio and a substantial
passive income over time. If you are looking for a
get rich quick scheme, this is not an investment
for you. A third factor
limiting who can invest in Mortgages is the amount
of money required to make an investment. Although
we do sell smaller Mortgages in the $10,000 to
$15,000 range, secured by recreational lots, we
have found that the time required to explain a
small investment is as great as the time required
to explain a larger investment. Therefore, we find
it unprofitable to deal with Investors who are
unable to or unwilling to make larger investments.
We have, therefore, established a minimum first
time investment requirement of $50,000 for most of
our programs and a $25,000 minimum for our
Securitized Preferred Fractional Interests
program. A fourth
limitation on investor suitability are requirements
of the Securities Laws. Because our Securitized
Preferred Fractional Interests are only registered
with the State of Alaska's Division of Banking and
Securities and not the U.S. Securities and Exchange
Commission or Securities Division of other states,
those Interests may only be sold to persons who are
residents of Alaska. In addition, the security
regulators require minimum income and net worth
standards for Investors. While these standards
would not be required for our non-security
programs, we believe that they are a minimum and
therefore, have imposed them as a minimum
requirement for all of our investment
programs. MINIMUM
INVESTOR REQUIREMENTS • Residency:
Investment in the Securitized Preferred Fractional
Interests, is limited to residents of Alaska only.
For our other programs residency is not an
issue. • Minimum
Income and Net Worth: We will sell Mortgage
Investments only to persons who confirm in writing
that they have a minimum annual income of $100,000
and a net worth of $125,000, (excluding home, home
furnishings, and automobiles), or in the
alternative, investors with a minimum net worth of
$250,000, as described herein. • Minimum
Investment: We require a minimum first time
investment of $50,000 for all programs except the
Securitized Preferred Fractional Interests program.
After the initial investment, investments may be
made for lower amounts. In the case of most of our
programs, due to Mortgage size, this will involve
an additional investment of $10,000 to $15,000. But
for the Securitized Preferred Fractional Interest
program this can be as low as $500 for an
additional investment in the same Mortgage invested
in, or a minimum investment of $5,000 in other
Mortgages. • Individual
Retirement Accounts ("IRA's) and Pension Plans: For
IRA's and one party pension and profit sharing
plans, the plan itself does not need to meet the
minimum financial suitability requirement provided
that the plan beneficiary does. For multi-employee
plans, the plan itself must have a minimum net
worth of $250,000. HOW
TO INVEST |
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