The F Street Promissory Note Fund was launched in 2009 as a private investment to fund the lending services for Milwaukee Hard Money (now known as The Hard Money Co.). In 2023 we have elected to market our fund to the general public through a 506(c) election with the Securities and Exchange Commission (SEC) to allow for general solicitation and investment participation from accredited investors.

While F Street makes many investments in real estate, this investment fund specifically raises capital for the sole purpose of making real estate loans to other real estate investors.

F Street collects interest and fees from their borrowers on each loan that is funded, which we use to pay our investors and cover our business expenses. Each loan we fund includes a 5% origination fee, as well as a 15% annual interest rate.

While this is typically unusual, as our team has a rigorous due diligence process to properly evaluate each borrower we lend to, in these instances we would file a foreclosure and take ownership of the property associated with the loan as we are always in 1st lien position on each property we lend on. Our goal is to find payment solutions with the borrower, but in instances where we do take ownership of a property, we have recourse for selling the property to recoup funds associated with the loan and further mitigate risk with our lending practice. On an annual basis, we have never lost money as a company.

We pay each investor 1/12th of their 10% interest on the last business day of each month. Your funds are deposited directly into your account through ACH payment.

No. Since launching to private investors in 2009 we have never missed a payment to any investor.

No, the structure of our fund does not allow for the compounding of your interest payments to your total investment balance. However, current investors are able to add additional funds in $5,000 increments after their initial investment. Each addition to the total investment amount requires an updated promissory note and an extension of the investment holding period (1 year).

With the funds being used to facilitate loans that have 6-month repayment periods, we need to ensure that we’re maintaining certain funding and liquidity levels to properly execute our lending services. On average, our loans are repaid in 267 days (trailing 36-month average), so we use the 1-year holding period to ensure we can facilitate a full loan cycle.

Yes. Through our partnership with The Entrust Group, accredited investors can move 401(k) and/or IRA funds to Entrust and then invest in the Promissory Note Fund or other F Street offerings. Payment distributions are made directly into the tax-deferred account with Entrust.

Yes, each investor in the Promissory Note Fund must be accredited. We have partnered with Parallel Markets to facilitate the accreditation process for our investors, free of charge.

Accredited investors are those individuals classified by the SEC as qualified to invest in complex or sophisticated types of securities. Once your check is completed, your accreditation with F Street will be good for up to a period of 5 years.

For determinations of income and/or net worth, Parallel Markets will require:

• Tax Records (Income): W-2, K-1s, 1099s, or other government document(s) that state income for tax purposes
• Assets (Net Worth): Bank statements, real estate appraisal (non-primary residence), Brokerage statements, etc. Liabilities are determined by a consumer credit report (within 90 days)
• You would also have the option of having a licensed CPA, Investment Advisor, Attorney, etc. complete an accreditation letter on your behalf.