Eligibility & Account Types
Who is eligible to invest with Investor Underwriting?
Participation in our offerings is strictly limited to Accredited Investorsas defined by the SEC under Regulation D, Rule 506(c). You must complete our qualification process prior to viewing active private placement memorandums (PPMs) or individual trust deeds.
What qualifies someone as an Accredited Investor?
Under SEC guidelines, an individual qualifies if they meet either the Income Test (earning over $200,000 annually, or $300,000 jointly with a spouse, for the past two years) or the Net Worth Test (having a net worth exceeding $1,000,000, excluding a primary residence). Financial professionals holding active Series 7, 65, or 82 licenses also qualify, as do entities or trusts with over $5 million in total assets.
Can I invest using my Self-Directed IRA (SDIRA) or Solo 401(k)?
Yes. Private real estate debt funds and First Trust Deeds are highly popular vehicles for Self-Directed IRAs and Solo 401(k)s. This strategy allows you to transition retirement capital out of volatile public equities and generate asset-backed yield tax-free or tax-deferred.
Can I invest through my personal LLC or Living Trust?
Yes. We routinely work with Family Offices, corporate entities, and family trusts, provided the entity itself meets the SEC requirements for an Accredited Investor.
Market Strategy & Macro Risk Mitigation
Why do you focus exclusively on Sunbelt states for your investments?
The Sunbelt region represents the strongest macroeconomic convergence of population migration, corporate relocation, and job growth in the United States. States like Georgia and Florida offer pro-business environments and structurally undersupplied housing markets. This consistent demand ensures our assets have highly liquid exit strategies (whether selling to a homebuyer or refinancing a stabilized rental), which directly protects our investors’ capital.
What is a “non-judicial foreclosure” state, and why is it critical?
A non-judicial foreclosure state allows a lender to recover collateral without enduring a lengthy, backlogged court process. If a borrower defaults in a judicial state (like New York or Illinois), recovering the asset can take years and consume massive legal fees. By lending exclusively in non-judicial, landlord-friendly states like Georgia, we can swiftly recover and liquidate the physical real estate—often in less than 60 days—ensuring your principal is protected and capital velocity is maintained.
How do you mitigate downside risk on the asset level?
We rely on strict underwriting math, not market optimism. Every debt investment is capped at a maximum 70% to 75% After Repair Value (ARV) to maintain a massive equity cushion. Furthermore, we lend exclusively to corporate entities, require full Personal Guarantees from the operating principals, and mandate independent General Contractor inspections before releasing any construction funds.
The Southern Legacy Fund (SLF)
What is the Southern Legacy Fund?
The Southern Legacy Fund is an Open-Ended 506(c) Private Debt Fund structured as a Georgia LLC. It is designed to provide passive investors with instant diversification across dozens of high-performing, 1st lien Residential Transition Loans (RTL) and DSCR rental assets throughout the Sunbelt.
What are the management fees for the Fund?
We believe in total alignment of interests. The Southern Legacy Fund charges a 0% Asset Management Fee. We generate our revenue on the origination side of the transaction, ensuring that your capital is deployed strictly to generate your preferred return without a “2 and 20” drag on your yield.
What is the minimum investment and lock-up period?
The minimum initial investment into the Southern Legacy Fund is $50,000. Capital is subject to a 12-month lock-up period to ensure portfolio stability, after which liquidity is available on a quarterly basis.
What is the target return?
The Fund targets a 7.25% – 8.50% annualized net yield. Distributions can be paid monthly via ACH directly to your account, or you may elect to reinvest your distributions for compound growth.
First Trust Deeds & LPAs
How does a Loan Participation Agreement (LPA) protect my privacy?
When you purchase a First Trust Deed with us, Investor Underwriting acts as the public Lender of Record. You act as the Silent Participant via a private LPA. Because we are the only entity listed on the publicly recorded county documents, your identity remains completely invisibleto data scrapers and public records.
If my name isn’t on the public record, is my capital secure?
Yes. While we act as the public-facing shield, the private LPA contract explicitly ties your capital to that specific First Trust Deed. In the unlikely event of a borrower default, the LPA grants you the legal rights to the underlying physical collateral.
Who handles the borrower and the construction draws?
We provide full-lifecycle servicing. You never have to chase a borrower for a payment or verify a plumbing permit. We collect the monthly interest, deploy independent inspectors for construction draws, and pass your proportional yield (targeting 9.00% – 11.00%) directly to your account.
Equity Partnerships & Direct Asset Ownership
What is the difference between your Debt and Equity offerings?
Our debt offerings (The Fund and Trust Deeds) provide fixed-income, predictable yield secured by a 1st lien position. Our Equity partnerships allow you to transition from the “Lender” to the “Owner.” By forming a Joint Venture with us, you capture forced property appreciation, operating cash flows, and powerful depreciation tax benefits, targeting a 14.00%+ IRR over a 3 to 5-year hold.
How does Investor Underwriting source its Equity opportunities?
As a direct national lender, we possess proprietary access to off-market deal flow. We do not rely on retail real estate brokers. Because we underwrite thousands of loan scenarios for developers, we are able to cherry-pick the top 1% of distressed assets and ground-up builds, stepping in as the Equity Sponsor only when the mathematical upside is highly asymmetrical.
How is the Sponsor Promote structured in your Equity deals?
We believe in total alignment of interests through a performance-based waterfall. In our Equity Joint Ventures, Limited Partners (Investors) receive their preferred return and a full return of capital before Investor Underwriting participates in the backend profit split. We only win when you win.
Why is a Special Purpose Entity (SPE) used in Equity investments?
An SPE is a legal structure created for the sole purpose of holding a single real estate asset. We utilize SPEs primarily for structural risk isolation. By siloing a property into its own dedicated LLC, any potential legal or financial liabilities associated with that specific project cannot “cross-contaminate” your personal portfolio or our broader fund. It ensures clean accounting and maximum liability protection.
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