Integris Secured Credit Fund II

12%

Annual Interest Rate

Payable Quarterly1

24-month term

from end of initial offering period – see disclosures2

Offering Materials

Thank you for your interest in the Integris Secured Credit Fund II. The private placement memorandum and subscription agreement documents may be downloaded by clicking on the PDF icons below.

Private Placement Memorandum

Investors Summary

Subscription Agreement 

12% Annual Interest Rate
payable quarterly1

Maturity date: February 28, 20252

Collateralized by a pledge of certain promote distributions from, and limited liability company interests in, two separate affiliated real estate ventures, as described in the PPM.3

$10 Million Offering: Integris is seeking to raise capital from accredited investors*
(minimum investment of $100,000 is required) 

Integris Secured Credit Fund II Frequently Asked Questions

What is the Integris Secured Credit Fund II?
Integris Secured Credit Fund II offers accredited investors an opportunity to invest in a collateralized note that will earn them passive income via a fixed annual interest rate of 12%, paid quarterly.1 Return of investor capital will be realized by February 28, 2025, the maturity date of the fund.2

Why is it called a “secured credit” fund?
The investments are collateralized by loans made by the Fund that are secured by a pledge of certain promote distributions from, and limited liability company interests in, two separate affiliated real estate ventures, as described in the Private Placement Memorandum, with an estimated value of $20 million.3

Is Integris Secured Credit Fund II a short-term investment?
Definitions of short-term offerings vary. This particular fund matures February 28, 2025, with an option to extend one-year by mutual consent.2 Many traditional real estate offerings have investment hold periods of 5 years or more. The Integris Secured Credit Fund II will mature in a shorter timeframe.

Is this a short-term note or secured note?
Though definitions of short-term vary, the Integris Secured Credit Fund II is a collateralized note earning the investor passive income at a fixed rate through a term of 24 months – from the end of the initial offering period of February 28, 2023.2

What is Build-to-Rent, mentioned in regard to the pledged joint venture?
Build to rent, BTR, B2R or single-family rental properties are residential rental properties built for the sole purpose of rental housing intended for young families and workforce professionals. Part of the collateral for Integris Secured Credit Fund II is the Urban Pacific Workforce Housing Land Fund, which entitles land for a unique build to rent product called the Urban Town Home.

What is the intended use of the capital being raised by the fund?
Proceeds from Integris Secured Credit Fund II will be used by the borrower to provide capital to the joint venture for the purpose of securing real estate contracts and pursuing entitlements and will not be used for any site development of the underlying projects owned by the joint venture and other corporate operations. Please see the Private Placement Memorandum for details.

Is the 12% annual interest rate a targeted internal rate of return (IRR)?
No. IRR, or internal rate of return, is a term used in some real estate investments that reflects a calculated return before any fees or expenses of the fund are included. The “annual interest rate” expressed for the Integris Secured Credit Fund II is the actual amount we intend to pay investors.

What type of investment is this? Is this similar to a corporate bond, high yield bond or note?
The Integris Secured Credit Fund II is a private placement sometimes referred to as a private real estate offering and as such, information about the fund and risks are contained in the PPM. The offering is not a corporate bond, high yield bond or note.  

What is the term of this investment?
The maturity date of this investment is February 28, 2025.

Is the investor charged any fees, commissions, or expenses for this investment?
The Integris Secured Credit Fund II has no upfront sales charge, nor does it charge any fees or expenses to investors.

When will investors’ capital investment be returned?
The maturity date of the Integris Secured Credit Fund II is February 28, 2025, with an option to extend one-year by mutual consent, at which point the capital invested will be returned to investors.

How long has Integris been in business? What is the track record of Integris?
Integris and its affiliated companies have a 30-year history4 and track record of serving individual and institutional investors. A detailed track record is available within the Integris Secured Credit Fund II private placement memorandum, which all prospective investors should review thoroughly.

Is the Integris Secured Credit Fund II considered crowdfunding?
The Integris Secured Credit Fund II is a 506c offering often used in crowdfunding. 506c offerings, also known as private placements, are only available to accredited investors.*

Is real estate crowdfunding only for multifamily?
No. Crowdfunded offerings can be virtually any asset class. BTR or Build to Rent, Industrial, Hospitality and Fixed Rate Credit Funds can utilize the 506c or any crowdfunding model.

Will I receive a 1099 or K-1 for my taxes?
The Integris Secured Credit Fund II will issue a K-1.

112% per annum, non-compounded, payable no less frequently than quarterly. First payments commencing with the period ending on March 31, 2023.

224-month term from end of initial offering period February 28, 2023. The maturity date is February 28, 2025, with an option to extend one-year by mutual consent. May be prepaid at the Manager’s discretion. (If prepayment occurs within 9 months of the Offering Termination date, Investors are entitled to payment as if the note was repaid 9 months after the Offering Termination date.)

3The loans made by the Fund are secured by a pledge of certain promote distributions from, and limited liability company interests in, two separate affiliated real estate ventures, as described in the Memorandum. The estimated value is internally created by management based on assumptions they believe are correct. Please refer to the Private Placement Memorandum for details of the net present value calculation.

4As of June 30, 2021. See Private Placement Memorandum for complete track record. Full-cycle assets include land hard and loan assets, and commercial hard and loan assets. 1992-present as Asset Recovery Fund, Eastbridge Partners and Shopoff Realty Investments (formerly known as The Shopoff Group). William Shopoff is the Founder and Principal of all these entities. Performance has varied in this time frame with certain offerings having generated losses that are detailed in the track record. Past performance is not indicative of future results.

1. 12% per annum, non-compounded, payable no less frequently than quarterly. First payments commencing with the period ending on March 31, 2023.
2. 24-month term from end of initial offering period February 28, 2023. The maturity date is February 28, 2025, with an option to extend one-year by mutual consent. May be prepaid at the Manager’s discretion. (If prepayment occurs within 9 months of the Offering Termination date, Investors are entitled to payment as if the note was repaid 9 months after the Offering Termination date.)
3.The loans made by the Fund are secured by a pledge of certain promote distributions from, and limited liability company interests in, two separate affiliated real estate ventures, as described in the Memorandum. The estimated value is internally created by management based on assumptions they believe are correct. Please refer to the Private Placement Memorandum for details of the net present value calculation.

*What is an accredited investor?

  1. If you are a natural person and you are claiming to be an Accredited Investor on the basis of having a net worth of at least $1,000,000, you will be required to provide documentary evidence of your assets dated within three months of the date of your Purchase Agreement, including without limitation: (i) bank statements; (ii) brokerage statements and other statements of securities holdings; (iii) certificates of deposit; (iv) tax assessments of real property; and (v) independent third party appraisals of assets. You will also be required to either: (a) provide a copy of a consumer or credit report dated within three months prior to the date of your Purchase Agreement from a nationwide consumer reporting agency such as Equifax, Experian or TransUnion (a “Credit Report”); or (b) consent to the Trust’s procurement of your Credit Report. You will also be required to represent that you have no other material liabilities other than those appearing on your Credit Report.
  2. If you are a natural person and you are claiming to be an Accredited Investor on the basis of having individual income in excess of $200,000, or joint income with you or your spouse or spousal equivalent in excess of $300,000, in each of the two most recent years and a reasonable expectation of reaching the same income level in the current year, you will be required to provide all Internal Revenue Service forms you have received or completed with respect to your taxable income for the most recent two full calendar years, including without limitation, Forms W-2, 1099, 1040 and Schedule K-1 of Form 1065.

Visit the SEC website for more information on what is an accredited investor.