Integris Secured Credit Fund IV

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Private Placement Memorandum

Integris secured credit fund IV Private Placement Memorandum

Investors Summary

Integris Secured Credit Fund IV information 12% fixed interest rate

Subscription Agreement 

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12% Interest Rate

Annual interest rate payable quarterly1

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32-Year Track Record2

of transforming opportunity into value as an affiliate of Shopoff Realty Investments.

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Maturity: April 30, 20263

The term of the note shall end on April 30, 2026.

 

Integris Secured Credit Fund IV Frequently Asked Questions

What is the Integris Secured Credit Fund IV?
Integris Secured Credit Fund IV 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 April 30, 2026, the maturity date of the fund.3

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, a separate affiliated real estate venture, as described in the Private Placement Memorandum, with an estimated net present value of $20 million.
4

Is Integris Secured Credit Fund IV a short-term investment?
Definitions of short-term offerings vary. This particular fund matures April 30, 2026, with an option to extend one-year by mutual consent.
3 Many traditional real estate offerings have investment hold periods of five years or more. The Integris Secured Credit Fund IV 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 IV 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 April 30, 2024.
3

What is the intended use of the capital being raised by the fund?
Proceeds from Integris Secured Credit Fund IV will be used by the borrower for general corporate needs, including the funding of working capital and debt refinancing; to fund a reserve to provide bridge financing for the acquisition of assets by Shopoff Realty Investments L.P. (“Shopoff”) and its affiliates; and to fund a reserve for the payment of Interest and other expenses related to the borrower’s operations and repayment obligations to the Company. 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 IV 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 IV 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 April 30, 2026.

Is the investor charged any fees, commissions, or expenses for this investment?
The Integris Secured Credit Fund IV 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 IV is April 30, 2026, 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 32-year history
2 and track record of serving individual and institutional investors. A detailed track record is available within the Integris Secured Credit Fund IV private placement memorandum, which all prospective investors should review thoroughly.

Is the Integris Secured Credit Fund IV considered crowdfunding?
The Integris Secured Credit Fund IV is a 506(c) offering often used in crowdfunding. 506(c) 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 506(c) or any crowdfunding model.

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

1. 12% per annum, non-compounded, payable no less frequently than quarterly. First payments commencing with the period ending on March 31, 2024.
2. As of September 30, 2023. 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.
3. 24-month term from end of initial offering period of April 30, 2024. The maturity date is April 30, 2026, and may be prepaid at the Manager’s discretion. If prepayment occurs, investors are entitled to payment as if the note was repaid through April 30, 2025. Maturity may be extended for an additional one year by mutual consent between the individual investor and the fund.
4. The loans made by the fund are secured by a pledge of certain promote distributions from, and limited liability company interests in, a separate affiliated real estate venture 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.

*An “accredited investor:”
1. Has income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year.
OR
2. Has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence). Visit the SEC website for more information on what is an accredited investor.