FAQs2020-11-02T19:56:57+00:00

FAQs

What is the projected return on investment?2020-09-09T15:37:34+00:00

A preferred investor can expect to receive between 3% and 8% return per year. We target a preferred return of 3% per year, paid in the form of a quarterly distribution. Beginning in 2021, at the end of each fiscal year, preferred investors will receive an annual dividend of 25% of the net distributable cash. Preferred investor returns are capped at a total of 8% per year.

How often are distributions paid to preferred investors?2020-07-28T13:28:16+00:00

Payments are made to preferred investors on a quarterly basis.

Preferred investors are also entitled to receive a special annual distribution of 25% of the net distributable cash at the end of each fiscal year. The annual distribution, if any, will occur after the audit is complete for the fiscal year.

What is the minimum investment?2020-07-28T13:28:37+00:00

The minimum investment is $10,000.

 

What fees are investors charged?2020-07-28T13:28:55+00:00

Investors are not charged any fees by Arbor Street. For comparison, investors in similar investments are typically charged a 1% to 3% asset management fee.

What is Regulation D?2020-07-28T13:29:12+00:00

The JOBS Act of 2012 revised the SEC’s Regulation D governing private placement offerings. This law allows accredited investors to invest in private placement offerings that were previously hard to access for private individuals. It has also created a more efficient and cost effective alternative for companies to raise debt and equity without accessing the public markets. Arbor Street Investments offers its preferred equity interests using Regulation D.

Who can invest in Arbor Street Investments?2020-07-28T13:29:27+00:00

The offering is open to accredited U.S. Citizens and a variety of U.S. entities. You can invest as an individual, through an LLC or other corporate entity, through a self-directed IRA, or through an education savings plan. For more information on who can invest, please contact our investor relations team.

Do I have to be an accredited investor to invest?2020-07-28T13:29:42+00:00

Yes, you must be an accredited investor to participate in Arbor Street Investments offering. To be an accredited investor you must have an annual income of at least $200,000, or $300,000 for joint income, for the last two years with the expectation that your income will be the same or higher in the future. Alternatively, you may be considered an accredited investor if you have a net worth exceeding $1,000,000, excluding the value of your personal residence. Not sure if you are an accredited investor? Reach out to us today!

What types of assets does Arbor Street Investments invest in?2020-07-28T13:29:57+00:00

Arbor Street intends to purchase primarily residential mortgage loans and mortgage servicing rights. We may also invest in non-performing or distressed residential loans as well as smaller balance commercial loans. A small portion of the portfolio may also be real estate owned and other assets, such as cash and cash alternatives.

What is a Mortgage Servicing Right?2020-07-28T13:30:13+00:00

A Mortgage Servicing Right, or MSR, is a contractual agreement in which the owner of a mortgage has sold the right to service an existing mortgage to another party. This can be done for a few reasons, but it important to note that the ownership of the mortgage has not changed, only the right to service that mortgage.

What is a whole loan?2020-07-28T13:30:29+00:00

A whole loan is a single loan issued to borrowers that can be bought and sold. It includes the mortgage itself and the right to service the mortgage.

What is the difference between an MSR and a whole loan?2020-07-28T13:30:47+00:00

When an MSR is purchased, the ownership of the actual mortgage loan does not take place. Instead, the purchaser of the MSR is only purchasing the right to service the loan. The owner of an MSR is paid a fee for servicing and may earn ancillary fees for late fees and related charges. The owner of a whole loan is in title to the mortgage and earns principal and interest, as well as servicing and ancillary income.

What are the advantages to investing in real estate related assets?2020-07-28T13:31:05+00:00

Arbor Street primarily invests in mortgage loans backed by real estate. We invest nationally to build a geographically diversified portfolio. Many financial professionals recommend allocating 5% to 30% of an investment portfolio in real estate. Real estate serves to diversify a portfolio, may act as a hedge against inflation, and is not subject to the daily price swings common to stock, bond, and mutual fund investments.

By investing in Arbor Street, you gain access to the benefits of investing in a diversified portfolio of real estate backed assets, earn passive income, and bypass the time, concentration risk, and headaches of owning rental properties.

Is there risk investing with Arbor Street Investments?2020-07-28T13:31:22+00:00

Yes, like all investments, there is risk associated with investing with Arbor Street Investments. An investment in Arbor Street is not insured by the FDIC or any other entity. There is no guaranty that Arbor Street will be profitable or will be able to pay the targeted returns to investors.

What is unique about Arbor Street Investments?2020-07-28T13:31:37+00:00

The founders of the Company formed it with the mission to generate passive income for accredited investors by building a diversified portfolio of mortgage loans and other real-estate related assets, with the objective of generating investment returns that are attractive, while also providing investors with regular income payments and some protection against loss of principal.

How does the target return for Arbor Street Investments compare with other fixed income assets?2020-07-28T13:31:54+00:00

When forming Arbor Street Investments, the management team performed an analysis of other entities similar to Arbor Street Investments. The management team modeled Arbor Street Investments to be competitive or better than similar investment options on the market.

 

How long is my money locked up for?2020-07-28T13:32:07+00:00

There is a one year lock out period at Arbor Street Investments. After that initial period, there are semi-annual redemption windows. The initial lock up period allows Arbor Street to invest the funds raised into yielding assets.

When can I expect to receive my first interest payment?2020-07-28T13:32:25+00:00

You will receive your first payment the first quarter after your investment is accepted.

 

Can I reinvest my payments back into Arbor Street Investments automatically?2020-07-28T13:32:39+00:00

Yes.

How do I redeem my investment?2020-07-28T13:33:00+00:00

After the initial one year period, Arbor Street will have semi-annual investment windows. We will redeem up to 12.5% of assets under management (AUM) in any semi-annual investment period. The annual redemptions are capped at 25% per year. In the event that any redemption period is over-subscribed, we will redeem investors on a pro rata basis. For more information on redemptions, please contact our investor relations team.

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