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JL PRIME NOTE FUND

SERIES OFFERED MONTHLY

JL Investors is pleased to offer investors an opportunity to invest in our improved short term note product. JL Prime Note Fund is a short-term alternative savings product, offering a target annualized compounding interest rate of 7.0% - 8.0% over a 6-12 month term.

 

JL Investors offered this Fund in 2020 and 2021 (respectively, “Series I” and “Series II”), and have successfully repaid within 12 months.

INVESTMENT TYPE

Debt Fund


INVESTMENT STRATEGY

Short Duration

Minimal Risk

Alternative Savings Account 

APR

7.0% - 8.0%

​

Term

6 - 12 months

Modern Building
Modern Buildings

Overview & Structure

Invest in a short-term product that aims to accommodate investor liquidity needs while offering an annualized interest rate that exceeds 10x typical bank money market rates. Since 2020, JL Investors has been offering this short-term alternative savings product to investors used to provide a line of credit to the flagship fund, JL Real Estates Debt Fund ("JLREDF") and JL Investors Group (the "Company"). JLREDF invests in pre-vetted real estate loans in top tier locations managed by experienced sponsors. Please check FEATURED TRANSACTIONS for more details.


To align interests with investors, the Company offers First-Loss Protection on JL Prime Note Fund.

Short Term Notes investors are scheduled to receive interest payments on a monthly basis over the course of 6 months.

JL Investors (18)_edited.png
Modern Buildings
Modern Buildings

Key Terms

TYPE I

TYPE II

TYPE III

TERM

APR

PAYMENT SCHEDULE

MIN. INVESTMENT

FEES

6 months

7.0%

Monthly

$10,000

$0 / 0%

9 months

7.5%

Monthly

$10,000

$0 / 0%

12 months

8.0%

Monthly

$10,000

$0 / 0%

Highlights

  • Yield Focused Alternative to Savings
    JL Prime Note Fund (the “Fund”) bears a contractual fixed annual interest rate of 7.0% - 8.0%, substantially higher than rates currently offered by leading high yield savings accounts and CDs.
  • No Fees
    JL Investors (the “Company”) does not charge any fees on this investment.
  • Liquidity
    The Fund aims to accommodate investor liquidity needs with terms between 6 months and 12 months.
  • Passive Investment
    Investors do not need to spend hours performing due diligence on individual investments. Investors receive a fixed return with monthly interest payments.
  • Diversification
    A single investment will be spread across multiple loans via a line of credit to JL Real Estate Debt Fund increasing your diversification to projects, borrowers and geographies.
  • Double Protection
    (1) The Company and JLREDF offer First-Loss Protection on JL Prime Note Fund. (2) The Flagship Fund invests in the 1st lien position in prime real estate projects owned by well-capitalized, experienced sponsors (with personal guarantee) who has a net worth in excess of $20mm+ and provides a buffer to the Flagship Fund in the event of any realized loss.
  • JL Investors Track Record
    JL Investors have executed and advised in excess of $2bn of transactions.

ESSENTIALS

Please refer to the Private Placement Memorandum and the Series Note Supplement for more details about this offering.

CAPITAL STRUCTURE

(Q) Where does an investor lie in terms of priority?

 

(A) The notes are secured by underlying investments that have been invested by JL Real Estate Debt Fund. The underlying investments are primarily senior debt in prime residential (80%) and commercial real estate (20%) properties. JL Real Estate Debt Fund holds the first-loss position in every series offered on the platform. JL Real Estate Debt Fund provides a buffer to all other investors in the event of any realized loss.

CASH FLOW

(Q) How do I get paid?

 

(A) The notes have a term of 6-12 months. Investors can expect to receive monthly interest payments at a fixed target APR on their full investment amount. Principal is expected to be repaid at maturity.

ASSETS

(Q) What is the collateral underlying the transaction?

 

(A) The Company will primarily utilize the proceeds of the notes to provide a line of credit to JL Real Estate Debt Fund. The underlying investments are primarily senior debt in prime residential (80%) and commercial real estate (20%) properties. Investors will be able to track their Short Term Note investment progress and interest payments on the Investor Portal.

Returns & Management fees

Management Fee

APR

0.0%

7.0% - 8.0%

Schedule

Payment Schedule

Monthly interest

Interest Type

30/360

Term

6 - 12 months

Structure

Tax Document

1099-INT

Offering Structure

Short Term Note

Fund Expense

0%

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