Our Next Dividend Will Be Distributed 8/1 To Investors Of Record By 6/30.
An investment with 2 bottom lines:
An 8-11% annual return,
tax-advantaged, distributed monthly.
A high-yield investment that helps struggling families stay in—and eventually own—their homes.
Introducing the fixed-income mortgage note fund from 7e Investments, open to all investors.
OVERVIEW
Earn 8-11% while aiding a family to reset their monthly mortgage payment and stay in their home.
Homeowners go into default for all kinds of reasons; some lose a job, others become ill, or are struggling with the death of a family member. At 7e, we know how to evaluate borrowers, finding the ones that are most likely to get back on track, and structuring payment plans that work.
We seek solutions where everybody wins.
Ideally, the homeowner stays in the home and pays the renegotiated mortgage. The whole community benefits from fewer vacant, deteriorating homes, and our investors receive 8% annualized monthly distributions by making a real impact investment.
If you’d like to do well by doing good, consider 7e Investments. We provide you monthly income and a way to make a positive impact.
Get started today.
Our Philosophy
Investing in distressed mortgages can be a way to achieve consistent monthly income.
It requires experience, discipline, and hard work.
Our fund’s performance is not tied to the stock or bond markets. Further, we’re not even tied to national or real-estate prices. Rather, we are tied to the homeowner’s ability to make their monthly payment—and that is where our extensive due diligence comes in.
Instead of pooling mortgages, we work one-on-one with families, resulting in:
- zero missed dividends in 2022
- zero foreclosures
- zero evictions
What if home prices go down?
Market forces on home values rarely influence our monthly distributions. After our thorough diligence, we purchase mortgage notes at 40-60% discounts providing a cushion on top of the equity already in the home from the down payment and monthly payments before the mortgage went past due. This also places us in a position to negotiate a new monthly payment, since we purchased the note at such a good price. This enables most families to get back on track. After all, this is the home they purchased, not a rental, making them highly motivated to stay on track.
“I replaced all of my bond funds investing with 7e. My returns are improved, my risk level is reduced, and I know we aren’t evicting people who stumbled and genuinely can and want to pay their mortgage and own their home.”
Invest to generate the income you need.
Approximate return streams based on investment amount.
INVESTMENT
$50,000
$75,000
$100,000
$150,000
$500,000
$750,000
ESTIMATED MONTHLY INCOME
$333
$500
$666
$1,000
$3,333
$5,000
ESTIMATED MONTHLY INCOME (with Bonus Shares)
$350
$525
$706
$1,060
$3,566
$5,350
WHY 7e?
Over 500 deals managed
Decades of combined real-estate experience
Diversified investments across multiple regions including the Rustbelt and Midwest
As of September 30, 2022, 100% of the notes in our latest fund have achieved a positive resolution
- Preferred shares: investors get paid first
- No management fees
Webinars
Market Update and Q&A – Outperforming Our Own Expectations in Q1
Watch the webinar replay and read the answers to the questions that we didn’t have time to answer live.
7e Investment Team – Ask Us Anything!
Watch the webinar replay and read the answers to the questions that we didn’t have time to answer live.
Mortgage Note Investment: Answering Top Investor Questions
Watch the webinar replay and read the answers to the questions that we didn’t have time to answer live.
INVESTMENT PROCESS
7e Investments is a mortgage note fund.
We invest in single-family loans in which the borrower is late or delinquent in making payments. Often, they stop making payments because of a temporary problem—a job loss, an illness, or the death of the spouse—and it takes a thorough understanding of their situation and prospects to determine if they can get back on track.
We buy these loans at a steep discount, typically 40–60%, so we often have the flexibility to adjust payments to a level that borrowers can afford. We create win-win situations, structuring deals that allow the borrowers to stay in their homes wherever possible: while also making interest and principal payments.
Since we invest in a limited number of these loans, we are able to thoroughly investigate the borrower’s context and financial situation, creating a three-dimensional picture of the mortgage note. We know a lot about which borrowers are likely to make things right and which borrowers will continue to shirk their responsibilities. We invest in the first type and avoid the second.
We make every effort to reach an agreement with the borrower. In the unusual cases where that’s not possible, we take over the property, fix it up and sell it, often at a profit*.
*7e Investments does not provide tax guidance. Please consult with your tax professional for personalized advice.
We buy loans on single family homes at a discount.
We negotiate a payment schedule with the borrower
Take ownership of the home
Generate income
Generate profits from the sale
Owner stays in home
New owner moves in
- Community remains stable
- Home values stay robust
- Creates value for our shareholders
Benefits of Investing
Six reasons to invest in 7e Investments.
Reliable, high income to meet your lifestyle needs.
An 8-11% preferred annualized return beats most other fixed income alternatives—even the returns on riskier assets like high-yield bonds.
One Year CD's
4-4.75%
Money Market Funds
3-3.6%
Long-Term Treasury
3.94%
High Grade Corporate Bonds
5.10%
Junk Bonds
8.60%
7e
8-11%
Tax-efficient monthly distributions
Since we are structured as a C corporation, we distribute income as dividends, which are taxed at the lower capital gains rates.
That can make an enormous difference in your after-tax returns. Consider that, currently, the top ordinary Federal Income tax bracket is 37%. The top capital gains tax rate is just 20%. If you’re in the top income tax bracket—with income between $500,000 and $600,000 a year—you’d only get to keep 5.04% out of an 8% annual interest payment.
Make it a dividend payment, taxed at the top rate of 20%, and you earn 6.4% after taxes.
Monthly After-Tax Income on an 8% Return
This investment is good for self-directed IRAs and not subject to UBIT, please consult your tax professional for personalized advice.
YOUR INVESTMENT
AFTER-TAX INCOME (If taxed as “Interest”)
AFTER-TAX INCOME (If taxed as “Dividends”)
$10,000
$42
$53
$50,000
$210
$267
$75,000
$315
$400
$100,000
$420
$533
$1 million
$4,200
$5,333
YOUR INVESTMENT (With Bonus Shares)
AFTER-TAX INCOME (If taxed as “Interest”)
AFTER-TAX INCOME (If taxed as “Dividends”)
$10,000
$42
$53
$52,500
$220
$280
$78,750
$330
$420
$106,000
$445
$565
$1,070,000
$4,494
$5,706
Note: It would take more than an additional 25% investment to provide the same after tax income.
“Who says being retired means that taxes don’t matter as much? By getting 8%, and as dividends, I’m completely covering my monthly needs because I keep more of the income.”
7e Investments does not provide tax guidance. Please consult with your tax professional for personalized advice.
The benefits of real-estate without all the work.
Many of our investors start out by buying non-performing real-estate directly, through tax sales and foreclosures, but quickly find that managing these properties requires more time and energy than they want to devote to it.
When you invest directly, it’s your job to:
- Identify properties
- Evaluate pricing
- Find financing
- Do repairs, painting, maintenance and cleaning
- Advertise for tenants
- Arrange leases
- Collect rent
- Pay taxes
- Deal with non-paying tenants
- Foreclosure if necessary
Invest with 7e Investments and all you have to do is:
- Write a check
- Collect dividends
A multi-faceted approach to managing risk.
Investing in distressed real-estate loans involves some risk. After all, the borrowers have stopped making interest and principal payments. However, at 7e, we have a disciplined approach that minimizes risk and magnifies the chances for a successful outcome.
- Look to purchase notes: We purchase properties at a 40-60% discount to market value, often giving us the flexibility to structure loan payment plans borrowers can manage.
- We are extremely selective: With a $75 million targeted raise, we are barely scratching the surface of the distressed loan asset class. We can afford to be extremely choosy about the loans we invest in, building a diversified portfolio with what we believe to be the best potential for enhanced returns.
- A diversified portfolioWe invest all over the country as local economic conditions drive local real-estate markets. We reduce our exposure to any single community’s economy by diversifying across 42 states.
- We work one-on-one with borrowers to get them to repay their loans: With a manageable portfolio of $75 million, we can focus on individual loans in our portfolio, working closely with borrowers to get them to commit to paying off their loans and keeping their homes.
Proven success in an asset class that not everyone can manage.
Mortgage notes are not an asset class you can easily scale, so larger asset managers tend to stay away. Consider that investing in a $200,000 loan takes the same effort and cost as investing in a $2 million loan.
7e Investments has a proven record for success in this challenging sector of the real-estate market, including:
- Over 500 deals managed
- Decades of combined real-estate experience
- Consistent deals across multiple regions including the Rustbelt/Midwest
- As of March 2022, 100% of the notes in our latest fund have achieved a positive resolution
Backed by a team of experts to help drive results quickly.
We have a team of seasoned professionals to help us drive results quickly. This includes:
- Attorneys that specialize in real estate and can navigate the ever-changing laws that govern each state.
- State Licensed servicers who are trained in borrower communication and act as the point person when it comes to loan modification.
- Real Estate specific CPAs and accountants with an understanding of the various tax ramifications of buying, owning, and selling mortgage notes which is helping us scale the portfolio faster.
Investment Guide
Learn more about 7e Investments, our investment process and history, and how investing can lead to high returns and a second chance for struggling families.
Offering Terms
Offering Price:
$10
Per Share
Minimum Investment:
$2,500
Holding Period:
4yrs.
Dividend Payments:
Monthly, on the 1st of each month to shareholders who have invested by the 1st of the previous month.
REDEMPTION POLICY:
If you redeem shares before four years have passed, you will lose your bonus shares and be subject to early redemption penalties as follows:
Within 12 months – 12%
From 12 months to before 24 months – 10%
From 24 months to before 36 months – 9%
From 36 months to before 48 months – 5%
Our service provider team for this $75 million offering:
Broker Dealer:
Dalmore Group
ESCROW AGENT & FINTECH PROVIDER:
North Capital
Lawyers:
Council Baradel
Auditors:
Grant Thornton LLP
Transfer Agent:
Vstock Transfer
Executive Team
Chris Seveney, President and Chief Executive Officer, Board Member
Christopher Seveney brings over 25 years of real estate experience to 7e Investments and has been actively buying and selling mortgage notes since 2016. During this time, he has acquired over 500 notes with UPBs in excess of $25 million in over forty states. Prior to investing in mortgage notes, Chris built a multimillion-dollar portfolio of assets through new construction and rehabilitation of existing properties in his own portfolio along with having managed over $750 million in new construction in his 25-year professional career.
Lauren Wells, Vice President of Investor Relations & Strategy, Board Member
Lauren Wells leads the strategic evaluation of market research and implementation and heads business strategies. Lauren brings over 10 years of business development, sales and project management experience to the company. Prior to joining the company, she worked as a senior consultant with SAAS startups including Procore and LinkedIn to build and scale their sales organizations. This included developing forecasts, defining target markets, identifying acquisition opportunities, and establishing new sources of revenue. Lauren has also been a real-estate investor since 2010. During this time, she has helped grow and manage a portfolio of over 100 assets which include both residential real-estate and mortgage notes.
Chi Nguyen, Director of Asset Management
Chi leads a vertical in asset management from acquisitions to disposition and brings over a decade of experience in real estate and management. Prior to joining 7e Investments, Chi led a successful entrepreneurial career in note investing, new construction and long-term rentals. Chi is a high achiever in critical thinking & effective communication and is known for her diligence and attention to detail.
Having a special place in her heart for the nonprofit world, Chi believes in always having a part of her life dedicated to giving back to leave the world a better place than she found it. With this philosophy, in her spare time, she helps run a small but mighty nonprofit organization she is extremely proud to be a part of.
Delaney Huthsing, Director of Asset Management
Delaney focuses on asset acquisition and management strategy while also leading portfolio progress analysis and championing the company’s operational initiatives. She led a successful career in operations and continuous improvement in her 10 years working in corporate and non-profit environments. Before joining the company, she worked as a senior operations leader at Target and Direct Relief, developing and leading teams, improving operational efficiencies, and implementing systems and processes at scale. She is an accomplished problem solver and communicator, skilled in building
teams and developing trusted relationships across functions to drive continuous improvement, cohesion, and effective operations.
Katie Klezek, Director of Investor Relations
Katie brings over seven years of multifamily real estate investment and property management experience to 7e Investments. She served in various operations roles for NALS Apartment Homes, a fully-integrated investment firm engaged in the acquisition, ownership, management, and rehabilitation of multifamily apartment communities. Wearing many hats during her time with NALS, her responsibilities included: managing contracts with key operations vendors, assisting with multiple capital raises of large acquisitions, executing on-site projects, and facilitating internal management webinars. Katie is passionate about efficient, kind and professional communication.
Jeff LaRoche, Board Member
Dr. Jeffrey LaRoche is a graduate of Worcester Polytechnic Institute and received his Doctorate from the University of Florida. Since receiving his PhD, he has been working within the technology and defense industry where he has authored 38 key publications and has 31 total patents in compound semiconductor device integration and physics for high frequency applications such as radar, directed energy, and 5G/6G communication.
Most recently Dr. Laroche has been working as a program capture manager and program manager for Raytheon Missiles and Defense (RMD) Advanced Technology Programs (ATP) group with a primary focus on developing new technologies in the semiconductor space for government agencies such as the Defense Advanced Research Projects Agency (DARPA) and the Office of Naval Research (ONR).
Dr. Laroche brings his experience of strategic planning, risk analysis, management, and acquisition strategies to the Board of CWS Investments.
