Investors participating in the HYCF are investing in a line of credit used to fund first-lien mortgages originated by Sharestates. Once these loans are originated, Sharestates will sell these loans either to its institutional or retail capital channels. The funds used from the HYCF to originate the loan will then be returned to the fund to repeat the process.

Your investment is backed by the mortgages themselves and any cash in the fund.

The HYCF was launched in 2023. To date, all interest has been disbursed and principal returned on time.

The fund has exposure to about 8-12 mortgages at any one point. Additionally, since the HYCF is being used a credit line, there is turnover in these mortgages as loans are purchased and replaced by new deals.

Sharestates’ diverse blend of capital partners has enabled the origination of over $3.6B in total loan volume. Based on historical averages, loans are sold to investors in 30-60 days.

Investors may choose to invest in the fund for a 6, 9, or 12 month term at different rates of return (subject to change during ongoing offerings):

• 6-month term: 7.50%
• 9-month term: 9.00%
• 12-month term: 10.50%

The rate of return issued for each Note is dependent on Market Rates achievable by Sharestates when originating loans on an ongoing basis, coupled with the duration of the note picked by the investor. Sharestates may adjust marketed rates for new issuances on an ongoing basis depending on market demand and fluctuations. When issued, each note will have a fixed rate of return and duration. While rates are not guaranteed, they are backed by underlying collateral (Mortgages) which are also covered by Personal Guarantees provided by the underlying borrowers.

Investors will receive interest monthly, and a return of principal once their investment term of 6, 9, or 12 months is complete.

You can invest in the real estate fund through Sharestates investment page: https://sharestates.loancloser.com//investments

There are no fees associated with investing in the HYCF. The fixed rate of return is annualized and there are no other administration costs or management fees that will be deducted from it.

This is an illiquid investment without the option to withdraw funds prior to the term. Since this is a pre-origination fund being used to close loans, Sharestates needs to have a clear idea of the monies in the fund for cash management purposes. As you approach the maturity of your term, Sharestates will manage redemptions to meet targeted terms.

Yes, international investors may participate in HYCF! International investors will need to complete a W-8BEN or W-8BEN-E as well as provide an unexpired copy of their government ID. These items can be uploaded for Sharestates review when an investor registers at https://www.sharestates.com/get-started/

Yes! Investors will receive notifications when their investment in the HYCF is nearing maturity. Investors may then redeploy those funds back into the fund or other Sharestates investment offerings, subject to availability.

Historically, real estate has outperformed the stock market. That’s why it is considered one of the best alternative asset classes. Real estate investing is not liquid, however, and it does carry some risks, but overall, it has been a good investment for private investors who perform the proper due diligence. We recommend always speaking with your investment advisor about any investment.

Sharestates has originated over $3.5B since 2015. Sharestates’ founders bring decades' worth of knowledge from the real estate space, with a trove of experience found across our executive team. The key to this has been building strong relationships with borrowers and brokers to originate loans as well as a broad range of capital providers that will buy our paper. These investors range from accredited investors and small hedge funds, family offices, etc., who invest through our retail channel, to large institutions who deploy $100M+ annually. Sharestates uses multiple warehouse credit lines to pre-fund loans before eventually selling them to one of our investor channels. The HYCF provides Sharestates an additional way to fund closed loans and gives investors another investment vehicle that offers diversification and shorter investment terms.

• One way to achieve this status is to make more than $200,000 as an individual, or $300,000 as a married couple. Accredited investors need to have reached this income level in both of the last two years. They also need reason to believe they will cross that threshold in the current year.
• The other way is to prove a net worth of more than $1 million, alone or as a couple. The Securities and Exchange Commission excludes the value of the investor’s primary home, meaning it counts neither the equity in the property nor most mortgage liability. The regulator also states that a couple need not hold all its combined wealth jointly.
• The final way to achieve Accredited Investor status is through professional designations and certifications. To verify your status this way, you will need to provide proof of FINRA Series 7, 65, or 82 licensing, or that you are a knowledgeable employee (executive officer, director, partner, manager, etc.) at a private fund issuer of securities.