Repeatable & Scalable – 7e’s Double Bottom Line Impact Investment
Watch the webinar replay and read the answers to the questions that we didn’t have time to answer live.Replay Now
Q&A from the Webinar:
Bonus Shares – The company is offering a limited number of bonus shares to investors. For investors who invest over $25,000 they will qualify to receive the bonus shares. Bonus shares are given to investors who will receive the dividend on these bonus shares and upon exiting the fund the investor would receive the value for those shares.
For example, if an investor invests $25,000. They would receive 100 bonus shares (valued at $1,000). More information can be found at 7e Offering (7einvestments.com)
Q. If the housing market goes down say 10-15%, do your mortgage notes go under water?
Every asset is reviewed on a case by case basis, but our current modeling for assets we are factoring in a 10% price reduction in our bids.
On top of this, we remind investors our Investment to House Value is typically under 50%. As an example, if a loan has a balance of $100,000 and the property value is $120,000. The acquisition price for this loan may be around $60,000. The property value would need to go down 50% before the equity investment would become at risk.
Q. Do you need to work quicker in the winter when families may be put out on the street if foreclosed/evicted?
The opposite occurs, we do not work quicker but slower in the winter. During Thanksgiving to New Years we do not start any new legal actions on borrowers. We remind investors loans are typically years (not months) behind, and our first option is to work out a payment plan with the borrowers. When the borrower is unresponsive or hostile do we continue with further legal action.
Q. Where can I find information on how investors sell their investment and how the price is determined after the minimum hold period?
This information is in our offering circular which can be found at invest.7einvestments.com
Q. As a novice investor in the mortgage note industry, define “repeatable & scalable” in 2-3 sentences.
We define repeatable and scalable as having a team who is well versed in the industry and has created systems and processes which allow us to review each asset and work with each borrower on an asset by asset basis while growing the company through the acquisition of additional note purchases.
Q. So, when payoffs and principal-portions are paid by borrowers back into the fund, that money is used to purchase more loans (not used to redeem shares) in order to keep the fund ongoing indefinitely?
When payoffs and payments are received, the funds are used to pay expenses, dividends and get reinvested in the fund. More information on the use of proceeds and investor redemptions can be found in the offering circular which is at invest.7einvestments.com