Fairway America Fund VI, LLC - SBRE Investment Offering - SBREfunds

Fairway America Fund VI, LLC

Non-Broker Vetted

Opportunity Overview

  • Asset Type:
  • Strategy Type:
  • Income Type:
    Income & Growth
  • Minimum Investment:
  • Capital Raised:
  • Target Return:
    9% - 12%

Investment Highlights

  • How a fund is structured and capitalized can have profound implications to the ultimate performance of that fund. We have endeavored to weave all of the lessons we have learned over the past decade plus of fund management and operations into the fabric of this fund.
  • We have consistently tried to take the long-term view when making our investment decisions and to attempt to consider specifically what the likely worst-case scenario outcome would be in the event of borrower default and subsequent foreclosure of the underlying asset that secured each investment. As an asset-based lender and investor, who relies predominantly on the real estate to secure ultimate performance and recovery of any investment being made, we know and accept that some percentage of defaults are part of the bargain. It is precisely how each asset performs if and when there is a default that ultimately matters most and, in the final analysis, has the biggest impact on the performance of this type of fund. In this regard, our track record has been excellent.
  • We have now put in well over 20,000 hours working in the trenches of real estate lending and fund management. The nature, structure, and strategy of Fairway America Fund VI represents the culmination of a career dedicated to the real estate finance business, to doing things the right way, and to generating quality, well-secured investments that produce reliable and attractive returns to Investors.

Asset-Level Information

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  • How does the Fund make money?

    The Fund shall receive as income 50% of all loan origination fees collected, 50% of all prepayment and/or exit fees collected, 50% of all balloon late fees collected (with the other 50% of any of the aforementioned fees distributed  to the Manager), 100% of all extension and/or modification fees collected on Fund Assets, all interest income actually received on Mortgage Loans owned by the Fund (both regular note rate and default interest), any rent collected on real estate Assets owned by the Fund, any earnings from investments in other mortgage pools or real estate based funds, any interest collected on deposited monies held by the Fund, any Member and/or Note Holder Redemption fees collected, and the net sale proceeds in excess of basis on the disposition of any Fund Asset.

  • How do the Manager and/or Fairway get paid?

    The Manager and/or Fairway will be relied upon to perform a variety of duties and execute responsibilities throughout the life of the Fund, including originating or acquiring Fund Assets as well as likely servicing (at least some of) these Assets. These functions each have direct costs associated with their performance for which the Manager and/or Fairway will not be completely compensated in the form of its Management Fee. We have attempted to create an overall fee structure for the Fund in a way that appropriately allocates income to the corresponding services being rendered and which aligns the interests of the Manager and/or Fairway with that of the Investors as fully as possible.

    In addition to the Management Fee, and its proportionate split of any EDC, the Manager and/or Fairway will receive as income 50% of any origination fees, 50% of any prepayment and/or exit fees, and 50% of any balloon late fees that are actually collected on any Fund Assets, with the other 50% of each of the above distributed to the Fund. The Manager and/or Fairway may also charge a reasonable, market-based processing or underwriting fee to help cover its expenses associated with processing, underwriting and document preparation for any Fund Assets it originates, acquires or extends. Such fees will typically range from $500 to $2,500, and will in no case exceed $5,000.

    Finally, the Manager and/or Fairway may be contracted to perform loan servicing duties on certain Mortgage Loans the Manager and/or Fairway originates or purchases directly, and/or on Mortgage Loans originated by, or acquired from, its Sponsors. In cases where the Manager and/or Fairway is being contracted to also be the loan servicer, the Servicing Fee (expressed as an annual percentage of the unpaid principal balance) will be calculated at the time of origination (or acceptance of these duties and entering into a loan servicing agreement) for each Mortgage Loan by taking the average of all Servicing Fees being charged by Sponsors on any of the Fund’s Mortgage Loans being serviced by Sponsors, or 1%, whichever is less.

  • How is the price of a Membership Unit (the “Unit Price”) determined?

    The initial Unit Price shall be $1,000. The Unit Price will fluctuate once the first amounts have been raised pursuant to this Offering. The Fund will set the Unit Price on a quarterly basis, based on the collective Stated Value of the individual Fund Assets. The Stated Value of each Fund Asset shall be determined on the last day of each calendar quarter by the Manager in its sole discretion. The Manager, however, shall establish, follow, and publish to the Investors its methodology for determining the Stated Value of each Asset and may modify, alter or improve this methodology from time to time in its sole discretion. At any given time throughout the life of the Fund, the Operations and Control Procedures (“OCP”) document published by the Fund on the Investor Portal (see FAQ section) shall contain a description of the current methodology being used to assist the Manager in determining the Stated Value. The Stated Value of the Fund Assets shall be used to assist in the determination of the Unit Price of the Membership Units as well as the AUM. For more information on the Stated Value, the Unit Price and the AUM, please see the section “Risks Specific to Members.”

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