$750,000 Senior Debt Annexed
- Jude Jacobs
- Jan 14, 2019
- 2 min read
We are Happy to announce an expression of interest from our lending bank in providing a $750,000 line of credit as senior debt to Jacobs Partners.This line of credit triggers a requirement to raise $150,000 in Preferred Equity to meet the investment $1million milestone for 2019.
BREAKING DOWN Senior Debt
Senior debt is a company’s first tier of liabilities, typically secured by a lien against some type of collateral. Senior debt is secured by a business for a set interest rate and time period. The company provides regular principal and interest payments to lenders based on a preset schedule. This makes the debt less risky, but also commands a lower return for lenders.
Senior debt holders may be able to voice their opinions on how much subordinated debt a company assumes.
OFFERING
We're releasing only $150,000(15%) worth of Equity Loans to investors from $500 per share.This will provide a total of 300 shares to investors.This offering will close on the 28th of February 2018.
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BREAKING DOWN Preferred Equity
Preferred Equity carries a shorter term (typically between six and 24 months). Preferred Equity debt most often entails a pledge of the sponsor and/or developer’s equity stake in the project. So, in the downside scenario of a default by the borrower, the Preferred Equity debt investors are paid before the borrower and/or management of the project.
STRATEGY
Jacobs Partner's diversified investment strategy includes investments in New Construction, Fix and Flip and Rental Properties – each with their corresponding risk and return profiles. The underlying commercial real estate supporting each of these debt or debt-like investments has their own unique business plan, location and income potential.
PROCESS
Jacobs Partners utilizes a disciplined investment process to search the numerous inbound Commercial Real Estate investment leads we receive to identify those investment opportunities that offer favorable risk-adjusted price, solid intrinsic real estate fundamentals and careful diversification by both property type and good location.
We conduct a site visit to each of our investment property,followed by an extensive research of the location and we further analyze the investment’s ability to return capital in downside scenarios. Once we close on an investment, we continuously monitor on an ongoing basis the status of the the development and principal value.
PORTFOLIO
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