From $10,000 per share! Invest together with Continental Funding Social Lending
A product with the goal of distributing to investors income (interest revenue) arising from
“Social Lending Business” collateralized by US real estate.
“Social Lending Business” with US real estate collateral is a money lending business within the United States, operating under US federal and state law, particularly with residential and commercial real estate located on the West Coast as property collateral for first and second mortgages.
The background of this system lies in the current situation of the US economy; since the 2007 Subprime Mortgage Crisis and Collapse of the Lehman Brothers in 2008, financing for real estate loans from US financial institutions and banks has exceedingly slowed. As a result, many real estate agents and general contractors in the United States receive loans for real estate property and the purchase of development projects not from financial institutions or banks, but from individual capitalists or investors. Accordingly, with the prospect of stable profitability in the money lending industry, Continental Funding LLC (hereafter referred to as “The Fund”) launched this offering with the purpose of investment.
Unlike typical real estate investment, which has a goal of collecting rental income or gain on sale, the interest on a real-estate secured loan becomes the dividends.
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Point 1 | Start investing from small amount of $10,000 |
Our company’s real estate investment service usually requires a large amount of funds (individual investment projects typically start at $50,000), but by partnering through Continental Funding, it is possible to start investing with a smaller investment amount (1 unit for $10,000). For an individual investor to create a diversified investment portfolio by himself, it would require a large sum of funds. However, The Fund allows for small sums of money to be collected and operate as one large fund, allowing for diversified asset investment and reduced risk.
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Point 2 | Invest in US Dollars |
With Europe’s economy still in a chaotic state, and the growth rate of economic world power China having fallen to below 7%, the environment surrounding the world economy remains shrouded in uncertainty. Despite the fact that the Japanese economy is naturally subject to such influences, the Japanese yen is considered a relatively safe asset. However, as you may know, Japan is in a critical financial situation, and depending on its leadership decisions, the economy is anticipated to reach an extremely serious situation. Under the current conditions of the world and Japanese economy, it is important for asset security to incorporate foreign assets in foreign currencies and carry out diversified investment.
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Point 3 | Peace of mind with real estate collateral for all investment projects |
Every investment project of the fund is collateralized by US real estate. In the lending business, the thing one must be most cautious of is irrecoverable debt. The fund’s investment projects are all secured by US real estate collateral, and the loan ratio is limited to 70% or less of the preliminary review’s valuation. In the case that repayment from the borrower stagnates and causes credit loss, it is possible to reduce the risk of irrecoverable debt to a minimum through the foreclosure sale of the collateral real estate.
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Point 4 | Attractive yield (estimated annual yield of 7%) |
In the business structure of conventional financial institutions such as banks, companies incur a large amount of costs to sustain the business itself. However, through the development of the internet, social lending services are able to considerably reduce maintenance expenses, which makes it possible for investors to achieve a high interest yield.
※Expected yield before tax.
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Point 5 | Smooth and reliable transactions through escrow system |
Escrow is a private third party agent that carries out business transactions entered between buyers and sellers or lenders and borrowers for real estate transactions or loans collateralized by real property. The role of the escrow company is to review the contents of documents such as the purchase agreement or promissory note, and ensure the smooth completion of the transaction or loan, and delivery of the property while ensuring that the procedures follow the conditions set forth in the agreement.
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Point 6 | Short-term investment within three years |
Most loan periods are within one to two years, allowing for an investment period within three years. The maturity date of the fund will be after three years.
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Point 7 | Monthly interest payments |
Interest payments will be made once per month (12 times per year). On the 20th of each month, the interest from the previous month will be deposited to the US bank account designated by the investor.
Three mechanisms that improve principal security
1. Steady Interest Revenue
As the fund is not assessed on the value of real estate but by interest income, it is less susceptible to changes in the market and the principal valuation is stable.
2. Accuracy of the mortgage
Through title insurance and escrow, the property’s first mortgage (and in cases, 2nd mortgage) are able to be registered smoothly and accurately.
3. Established principal recovery system in the case of emergency
The fund’s lending volume is set at a maximum of 70% or less of the property’s appraised value. Therefore, even if the payments stagnate, and the market valuation decreases by up to 30%, it structure is set up such that it will not affect the valuation of the capital investment. If the interest payments on the loan property are not being made, ultimately by selling the collateral property, you can recover the principal amount, and this method allows for the return of principal even in the case that the property valuation decreases by up to 30%.
Fund Overview
| Fund Corporate Name |
Continental Funding, LLC 1810 Sahara Ave., #123 Las Vegas, Nevada 89104 Tel: +1-702-208-9800 Fax: +1-702-442-1967 |
| Manager |
Continental Funding, LLC 1810 Sahara Ave., #123 Las Vegas, Nevada 89104 Tel: +1-702-208-9800 Fax: +1-702-442-1967 |
| Product Information/Company Objectives | A product with the goal of distributing to investors income (interest revenue) arising from “Social Lending Business” collateralized by US real estate. |
| Project Location | Properties in the United States (California, Nevada, Washington, and surrounding areas) with a minimum real estate collateral value of $50,000. |
| Procured Investment | US$ 20,000,000 |
| Contract Period | From the contract date until September 9, 2019 |
Fund Guidelines
| Fund Corporate Name | Continental Funding, LLC |
| Number of Units Issued (Sold) | 2,000口 |
| Total Value of Units Issued (Sold) | US$ 20,000,000 |
| Issuing (Sale) Price of One Unit | US$ 10,000 |
| Investor Qualifications |
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| Expected rate of return | 7.00%（Prior to tax） |
| Rate of distribution | 12 times per year |
| Date of distribution | 20th of each month |
| Principal Redemption Date | Within 3 years of the loan execution date ※Under Securities Laws, it is prohibited to guarantee principal redemption so this does not serve as a guarantee. However, because each loan is secured by real estate property, and the loan is limited to 70% of the assessed value (real estate valuation) of the property, the system is such that even if the property value declines by 30%, damage will not occur to the principal valuation. |
| Subscription Fee | Free (Remittances fee borne by investor) ※Please see below for additional charges to investors |
| Subscription Units | Minimum purchase of one unit |
| Subscription Period | 2/1/2013 – 1/31/2014 ※Will be accepted on a first-come-first-served basis. The Manager has the sole discretion to rescind the Offering prior to Breaking Impounds, or to terminate the Offering prior to raising the Maximum Dollar Amount. Additionally, if the Minimum Dollar Amount has not been raised before the application period expires, the application period may be extended. |
| Subscription Deposit | No deposit. |
| Cancellation Terms | No cancellation available. |
| Payment location | Payment will be made to the bank account held by the operator (There is no need to visit us directly.) |
| Contract Period | The contract period of the fund is from the contract date (according to the described contract execution date in the private partnership contract) until September 30, 2019 (up to 36 months). ※Contract period may be extended. |
Miscellaneous Fees
| Subscription Fee | Free（Remittance fees borne by the investor） |
| US Bank Account Establishment Support Fee | Free（Monthly account maintenance fees borne by the investor） |
| Remittance Fee | 出At the time of transferring payment of investor’s capital and dividends from sales, investor will be required to pay the remittance fee. |
| Transfer Fee | Amending the fund’s registered holder requires a fee of $100. |