7e Offering

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Our next dividend will be distributed on 10/1 to investors of record on 8/31

An 8% annual return (paid monthly)

We balance aiming for higher yields and keeping people in their homes.

Introducing the socially-aware mortgage note fund from 7E Investments.

WHAT WE DO

Providing investors with access to one of the real-estate market’s most demanding and resource- intensive sectors:

Distressed single-family home mortgages.

These assets can provide high returns to experienced, disciplined, professional investors willing to look for win-win situations that may restart interest and principal payments while keeping homeowners in their homes.

“We investigate the borrower’s context and financial situation, creating a three- dimensional picture of the note.”

Our Offering of preferred stock generates an attractive 8% annual return (paid monthly)—and depending on how much you invest, you may be eligible for bonus shares that represent up to 7% of your initial investment. Those bonus shares can effectually boost your dividend yield above 10%, providing even more income to meet your monthly needs.

If you’re looking for an investment that distributes monthly income while making the world a better place, consider 7E Investments.

Our Philosophy

Higher income for you, a second chance for borrowers.

7E Investments management team focuses on doing its due diligence, completing deals well rather than quickly — social health is coupled with fiduciary responsibility aimed at making the most financially sound investments.

We believe that enhanced returns can be best achieved by renegotiating mortgages and keeping people in their homes on an agreed upon payment plan, maximizing both investment returns and community stability.

“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 slipped up 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?

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 and Midwest

As of March 2022, 100% of the notes in our latest fund have achieved a positive resolution

Integrity matters.

7E Investments offers a return you can feel good about, not just because it’s high enough to cover regular expenses. Integrity is the foundation of 7E’s business model; the team tries to maximize returns while keeping people in their homes.

We work hard to do right by investors and homeowners.

We:

  • Maintain a high level of transparency, communicating with shareholders often, and at least quarterly.
  • Give shareholders access to performance data, on demand and at any time through our web portal. You can even see how individual properties are performing in real time.
  • Remain accessible to clients, even if the news isn’t all good. Your money is not going into a communication “black hole.”
  • Investors get paid FIRST!
  • No management fees.

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, along with some creativity, to get them on track again.

Since we invest in a limited number of these loans at any given time, we are able to thoroughly investigate the borrower’s context and financial situation, creating a three-dimensional picture of the 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 buy these loans at a steep discount, 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.

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**.

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

The bottom line: We try to keep people in their homes, while you are distributed 8%.

Benefits of Investing

Seven reasons to invest in 7E Investments.

Reliable, high income to meet your lifestyle needs.

An 8% preferred return, paid annually, beats most other fixed income alternatives—even the returns on riskier assets like high yield bonds.

1Bankrate.com, CD Rates, 4/26/22.
2Bankrate.com, Money Market Rates, 4/26/22.
3US Treasury, Daily Treasury Long-Term Rates, 4/25/22.
4U.S. Corporate Indexes Bloomberg Fixed Income Indices, WSJ.com, 4/26/22.
5High Yield Bonds ICE Data Services, High Yield Constrained, WSJ.com, 4/26/22.

Current Rates on Fixed Income Investments

One-year CDs

1.0-1.2%1

Money Market Funds

0.55-1%2

Long-Term Treasuries

3.01%3

High Grade Corporate Bonds

4.19%4

Junk Bonds

6.79%5

7E Investments

8%

A tax-advantaged structure that pays out dividends, rather than interest.

Because 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 to 50% discount to market value, often giving us the flexibility to structure loan payment plans borrowers can afford.
  • 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.
  • We diversify across performing and non-performing loans: We invest in markets all over the country: local economic conditions drive local real-estate markets. Events like plant closures or industry downturns can have an outsized impact on specific localities’ loans. We reduce our exposure to any single community’s economy by diversifying across America.
  • 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.

Investing in troubled loans is hard work. Every loan you purchase requires extensive due diligence, direct contact with the borrower and, if the property is in foreclosure, often significant resources to restore it to a condition for occupancy.

It’s not an asset class you can easily scale, so larger asset managers tend to stay away. Consider that investing in a $100,000 loan takes the same effort and cost as investing in a $2 million loan. If you’re foreclosing on a $100,000 home in Cicero, IL, it takes the same amount of paperwork and processing as foreclosing on a $2 million home in Chicago.

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
A socially responsible approach that keeps people in their homes.

Foreclosure is the last resort. Our entire process focuses on finding a way to help borrowers pay their mortgages. You can feel good about your 8% return because it comes not from removing people from their homes and selling them (except when that is best for all parties or when modifications cannot be agreed to), but giving them another chance, which we believe most deserve.

Our ability to change our position on any loan is to protect our shareholders. Our first obligation is to our shareholders and there are occasions where leaving people in their home is the worst-case scenario for them as well as us. When there is not a high probability of repayment, even on a workout, foreclosures and sales are frequently the most efficient route for all parties.

Backed by a team of experts to help drive results quicker.

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 loans which helps 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 borrowers.

Offering Terms

We are offering up to $75 million in Class A and Class B Preferred Shares of Stock.

Offering Price:

$10

Per Share
Minimum Investment:

$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.

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%

7E Investments is a Regulation A+ offering. That means that investors do not need to be accredited to invest—that is, they do not have to meet any requirements for income or assets in order to buy shares.

Broker Dealer:

Dalmore Group

ESCROW AGENT & FINTECH PROVIDER:

North Capital

Lawyers:

Council Baradel

Auditors:

Tesseract Advisory Group

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.

Webinars

7E Mortgage Note Investments: Our Regulation A+ Offering

Our newest offering may be a great fit in your portfolio. We at 7E pride ourselves on offering alternative investment opportunities in and around real estate–not tied to the stock market. For the past 5+ years, we at 7E have been establishing ourselves as innovators in creating opportunities for investors, from the early stages of joint ventures, to moving on to funds. For this offering, we are open to every type of investor, from accredited to non accredited, from small dollar investments, to those with significant cash sitting on the sidelines–including IRAs. We have always thought of the investor first, balancing our focus on both high returns and managing risk. As we have grown, we design and test innovative and creative ways to develop new offerings while not impacting our core values or returns to our investors. After a long and hard year of working with attorneys and building our team, we have created an offering that we believe accomplishes high yield returns, with a heart.

Everybody deserves a second chance. Why not earn competitive income while you’re giving them one?

Homeowners go into default for all kinds of reasons; some lose a job while others become ill. Others become distracted by life events like divorce or the death of a family member. A few ever have a realistic chance of making their payments. At 7E, we know how to evaluate defaults, finding the ones that are most likely to be repaid and structuring payment plans that work.

We look for solutions where everybody wins. Ideally, the homeowner stays in the home and pays the mortgage while you earn 8% annually. However, in cases where keeping the home is not possible the community benefits from fewer vacant, deteriorating properties, and our investors get paid monthly for putting money to work in this vital sector of the economy.

If you’d like to earn 8% a year from an investment that does some good in the world, consider 7E Investments. We provide you income and a way to make a positive impact.

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