Fixed Income Fund Offering & Terms
The Offering & Terms
Our company proposes to sell secured notes (i.e. mortgage and trust deed loans) pursuant to Rule 506(c) under Regulation D of the 1933 Securities Act only to certain accredited investors, through general solicitation, subject to documentation in definitive subscription agreements and qualifying accredited investor representation letters.
Tactical Wealth Fixed Income Fund offers an opportunity to investors to purchase certain Secured Notes in the minimum aggregate amount of $1,000,000 and up to the maximum aggregate amount of $100,000,000.
The minimum investment amount per investor is $50,000; however, the Fixed Income Fund manager reserves the right to accept subscriptions in a lesser amount or require a higher amount in certain cases.
Our investors will generally receive a fixed rate of return (the “interest component” paid through the loans acquired) to be separately agreed upon between each noteholder and the Fixed Income Fund. The rates offered by the fund will generally follow the U.S. Treasury rates for each duration multiplied by a factor of 2.5.
The Fixed Income Fund maintains a contingency reserve for the secured notes to protect against potential future losses.
Each of the investor’s’ secured notes will have five percent of the initial capital amount contributed to the contingency reserve. The amount contributed will not earn interest; however, any unused portion will be returned to the noteholder upon maturity of their investment.
The contingency reserve will be used to cover additional legal expenses to secure the fund’s interests’ in non-performing loans, including foreclosure proceedings. The contingency reserve may be utilized in conjunction with loan loss provisions as well as other unforeseen expenses related to securing the interests of the Fixed Income Fund.
The contingency reserve may also be utilized to continue monthly payments to our investors in the event of a loan default, ensuring that our clients can depend on receiving their stable monthly payouts consistently.
An investment in the Fixed Income Fund and the underlying securities involves risk of loss and is suitable only for accredited investors who have no need for immediate liquidity of investment.
Investors should be able to understand and afford the financial risks of such investment. Learn more about the operating strategy of the Fixed Income Fund or contact Tactical Wealth for additional information on the risks associated with an investment.
The Fixed Income Fund will accept subscriptions for the secured notes only from investors who are “accredited” within the meaning of Regulation D under the Securities Act of 1933, as amended.
This means, in the case of individuals, investors who have had income of $200,000 (or joint income with spouse of $300,000) or more during the last two years with the same amount reasonably expected for the current year, as well as persons with a net worth of $1,000,000, excluding the value of the primary residence, are accredited.