Who invests in STREF?
The fund is open to accredited investors only. STREF is an appropriate investment for individuals and institutional investors who are seeking a consistent high-yield return with low volatility and collateral protection. It is also suitable for investors who want passive income from regular distributions and those who would like to diversify their overall portfolio away from traditional investments like stocks, bonds, and government debt. Because the fund invests in notes backed by real estate, investors driven by capital preservation are still able to enjoy returns more typical of riskier high yield assets.Test.
What is an accredited investor?
An accredited investor is an individual who has income of at least $200,000 over the previous two years (or $300,000 with a spouse) or who has assets worth at least $1M outside the value of a primary residence. For entity investors, assets must total at least $5 million or all of the owners of the entity must be accredited investors.
Who borrows from Stallion and why are they willing to pay a higher interest rate?
Clients borrow from Stallion when they have the opportunity to profit from real estate investments but bank financing is unavailable or impractical. The borrower may have a very short time frame to purchase the property, may have certain credit challenges, or the property may be outside of a bank’s scope of lending. Our fast turnaround time and excellent service allow the borrower to take advantage of real estate opportunities that would otherwise be missed.
How are these loans structured?
Loans are typically 12 month, interest-only loans with a balloon payment due at maturity. Payments are due from the borrowers monthly. Borrowers have the right to repay the loan completely before the balloon is due, however he or she must pay at least four months of interest.
How is my investment secured?
All investments are secured by first lien deeds of trust. Your investment is used to fund loans in multiple properties. In the event of a foreclosure, Stallion will handle the entire process, assume ownership of the property, and either sell it, manage it until it becomes profitable to sell, or continue to collect the cash flow if it is an income-producing property. The advantage of the fund structure is that if any individual loan results in a lower than expected yield or capital loss, the effects on the investor are minimal as they are offset by the positive performance of multiple other loans.
How do I get started?
Please contact Stallion Capital Management to request a copy of our Private Placement Memorandum (PPM) and Subscription Document. Once you have reviewed the documents and have had your questions answered, we can walk you through what is required on the Subscription Agreement. Once this document is signed and we have confirmed receipt of your funds, your money will be put to work quickly.
How do I receive payments?
You will receive quarterly distributions through check or direct deposit unless you have chosen to reinvest dividends. You can expect to receive your quarterly payment between the 15th and the 20th of the month following the end of each quarter.
Can I change my mind about reinvestment?
Yes, you have the ability to change your reinvestment options quarterly.
What is the minimum investment to get started?
The average investment is around $250,000, though we require a minimum investment of $100,000 to begin investing in the Stallion Texas Real Estate Fund.
When can I add to my investment?
You can add to your investment at any time. Please note that your additional investment will not be converted to shares in the fund until the end of the current quarter, but will be paid a flat 8% interest through the end of that quarter. Then, at the start of the next quarter your additional investment will be converted into membership shares in the fund.
Can I use my IRA, 401K, or other qualified funds to invest?
Many IRAs, 401Ks, and pension custodians allow the use of qualified funds to invest with Stallion. We work closely with several custodians that can accommodate your specific needs.
Is it possible to withdraw my investment?
There is an 18 month commitment period. After the commitment period is fulfilled, funds can be withdrawn at the end of the next quarter.
How do I keep up to date with my investment?
You will receive a statement after every quarter detailing the performance of your investment. You can also monitor the performance of your investment through our online portal.