Frequently Asked Questions For Investors In Our Secured 9% Notes
Please note, we do not do strong pitches as we are more interested in developing new relationships in a slower, “get to know us” way. We are grateful to have a wonderful investor group and we enjoy the process of building trust over time. Below are some frequently asked questions from over the years.
How often will I receive interest payments from your company?
You have the option to receive monthly interest payments from us delivered directly to your bank account each month. If you receive monthly payments, your capital will earn a simple yield.
Alternatively, you may elect to have your monthly interest re-invested with us each month. If you re-invest each month, your capital account will grow each month from accumulated interest. Also, your capital will earn a higher annual yield from the effect of monthly compounding as you earn interest on an increasing principal balance each month. You may request distributions at any time.
Do you issue a K-1 at the end of the year?
No, we will issue you a 1099-INT form at the end of each year. Your investment will earn interest (ordinary income) and will not require an annual K-1.
I notice that the notes have a 6-month term. What if I want my capital back sooner?
If you would like your principal returned to you before the end of the 6-month term, simply ask and we will return your capital to you as soon as we possibly can, often within 1 business day.
What if I wish to make a partial withdrawal of my capital, but not all of it?
This is easy. Simply ask and we will send you whatever portion of your investment that you request. If your partial withdrawal is being requested before the end of the 6-month term, we will process your withdrawal as soon as we possibly can.
How do I keep track of my capital account with you?
We will email you monthly statements or quarterly statements, whichever you would prefer. Each statement shows your capital account balance, accrued interest, deposits, and withdrawals.
What other types of reporting can I receive?
As an investor you will also automatically receive our Quarterly Letter which is issued a couple of weeks after the end of each quarter.
As an investor you will also automatically receive a copy of our annual audit. If you would like to review our audits as a prospective investor, just drop us a line and we will email them to you.
We are audited annually by Armanino LLP based in San Ramon, California. We pay annually for the audit and we cover this cost on behalf of our investors. Armanino LLP has extensive experience auditing mortgage lending businesses such as ours. We currently have 10 annual reports available to review from Armanino.
If you can send funds to my bank account electronically, can I ask you to also pull funds electronically from my account so that I don’t have to go to the bank to send a wire?
Yes, this option is available. We have a simple form for you to complete online if you wish for us to pull funds from your bank account. The most we can pull from your account in any 24-hour period is $50,000.00.
Can I send funds to you via ACH from my bank account?
Yes, you can. To send us funds via ACH, go to carolinelending.com/ach and enter password “green” to view our ACH information. Once you have our ACH information, enter it into the web portal for your bank account to send us the funds. Make sure to email us so that we can know to look for the funds you are sending.
Can I send funds to you via bank wire from my bank account?
Yes, you can. To send us funds via bank wire, go to carolinelending.com/bank and enter password “green” to view our bank wire information. Once you have our bank wire information, follow whatever process you normally use for wiring funds from your bank. Make sure to email us so that we can know to look for the funds you are sending.
How often can I send funds to my account and/or withdraw funds from my account?
We are very flexible in returning capital to our investors and/or making distributions to our investors. If you would like a distribution, please make the request anytime. We will satisfy your request as quickly as we can. Also, you are welcome to send us additional funds anytime. We re-calculate your balance any day that your account balance changes and credit you interest accordingly.
What is an accredited investor?
According to the Securities and Exchange Commission, an individual accredited investor is anyone who:
- Earned income of more than $200,000 (or $300,000 together with a spouse) in each of the last two years and reasonably expects to earn the same for the current year.
- Has a net worth over $1 million, either individually or together with a spouse (excluding the value of a primary residence).