The January Fund 506(c) Investor Portal

A Non-Bank Lending Fund Secured by Real Estate

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The January Fund 506(c) Offering Platform

INTRODUCTION TO OUR COMPANY

The January Fund capitalizes on the excessive regulations placed on traditional bank lending by providing capital to non-bank real estate lenders at higher-than-bank rates while offering a common-sense approach to financing creditworthy borrowers. The fund addresses a variety of unique transactions involving the purchase, refinance, and renovation of residential and commercial real estate.

The January Fund is managed by New York Mutual.

For nearly 15 years, New York Mutual has maintained an impeccable reputation for funding short-term and non-traditional real estate transactions.

The conservative portfolio is recognized for exceptionally low default rates while enjoying consistently high yields.

"The record capital sought by U.S. firms for private real estate debt is up almost 40 percent."

— Bloomberg —

The January Fund 506(c) Offering Platform

SUMMARY OF OPERATIONS

The January Fund Niche

The January Fund niche focuses on common-sense lending avoiding the high-risk volatility of subprime lending options and the high regulations of traditional lending. The January Fund focuses on strong borrower profiles, short terms and low loan-to-value ratios.

Our
Plan

The Company will focus on its core competencies and those of its affiliates regarding sourcing, assessing, acquiring, and actively managing Real Estate Loans (defined below) and providing credit facilities. Our principal focus will be on lending money to individuals or entities that are themselves engaged in the business of lending money for real estate projects, a group we refer to generically as “Real Estate Lenders.” Many of the Real Estate Lenders will be individuals or companies traditionally known as “hard money lenders,” but we also expect that Real Estate Lenders will include companies created under the auspices of the JOBS Act of 2012, often referred to as “Crowdfunding portals.” We refer to the individuals and entities who borrow money from Real Estate Lenders – real estate developers, for example – as “Underlying Borrowers” and to their loans as “Underlying Loans.”

How it Works

TJF lends $1.5 million at 11.75% interest to a qualified non-bank lender/borrower at 65% LTV.

100% of the capital for $1.5 million loan will be provided by TJF members.

Interest income from the qualified non-bank lender/borrower will yield 11.75%.

Net return to investors after 3rd party fees will yield approximately 10% IRR*.

* See Indicative Returns for Details.

Our
Underwriting

The proven multilayered underwriting platform of the fund means each loan is individually underwritten and approved using third-party verifications and typically requires the personal guarantees of the non-bank lender and borrower.

When determining whether to finance a particular Real Estate Loan we examine:

  • What is the overall quality (location and LTV) of the properties securing the applicable Underlying Loans in question?
  • In addition to the collateral assignment of the applicable Underlying Loans, will the respective Real Estate Lender be pledging any other real estate or other assets as additional collateral or protection for the Real Estate Loan?
  • The liquidity of the applicable Real Estate Lender and the corresponding Underlying Borrowers provided as collateral.
  • The potential exit strategies open to the Real Estate Lenders and to the corresponding Underlying Borrowers are rigorously evaluated, including, but not limited to refinancing, sale or potential liquidation.
  • How much equity have the Underlying Borrowers contributed to their respective real estate projects?
  • How levered are the Real Estate Lenders under the Real Estate Loans and how levered are the Underlying Borrowers in their corresponding Underlying Loans?
  • What are the credit scores of the Underlying Borrowers and our Borrowers under the Real Estate Loans?
Investment Risk Mitigation
    Foreclosure
  • A typical 30%-50% equity requirement on the front end of each transaction means that defaults generate additional income and higher-than-average returns.
  • A personal guarantee is required from the non-bank lending principals and end borrowers.
  • A corporate guarantee is required from the non-bank lender.
    Bankruptcy
  • A bankruptcy-remote special-purpose entity is used with each credit facility provided to the non-bank lender, which prohibits bankruptcy for that entity and shields the fund collateral from the bankruptcy of the non-bank lender or end borrower.
  • A bankruptcy-remote special-purpose entity is used by the fund for certain facilities based on overall credit risk, geography, and asset type to carve out risk.
    Market Forces
  • Non-bank lending is macro-economically countercyclical, which means it does better when the market is in a correction or recession due to the decline in traditional bank lending.
  • High yields from real estate debt, earned from multiple sources in multiple geographies, have historically offset moderate levels of defaults by an attractive margin.

"THE RETURN OF MY MONEY IS JUST AS IMPORTANT AS THE RETURN ON MY MONEY."

— Mark Twain —

The January Fund 506(c) Offering Platform

Company Manager

The Company is currently managed by a seasoned business and sector professional dedicated to the success of the Company and efficient execution of its planned operations.

Steven Kaufman
Anti-Defamation League Harvard Business School Ernst and Young Entrepreneur of the year entrepreneur.com

STEVEN KAUFMAN, CPA, MsEDE

Fund Manager

Mr. Kaufman is an accomplished real estate investor and entrepreneur.

Mr. Kaufman completed the Strategic Marketing Management Program at Harvard Business School and has a Masters Degree in Economic Development and Entrepreneurship from the University of Houston. He is currently completing his Ph.D. in Organizational Leadership at The Chicago School of Professional Psychology.

Mr. Kaufman has held C-Level positions in various financing enterprises for 15 years. During that time, he coordinated over $1 billion in real estate financing for companies like American Express, Hewlett Packard, and Exxon Mobil and founded Zeus Mortgage Bank.

At Zeus, Mr. Kaufman manages a team of over 50 lenders, underwriters, marketing reps, and project managers, and is responsible for more than $1 billion of retail mortgage loan originations and over $150 million in financing for various real estate projects. According to Inc. Magazine, Zeus is the 37th fastest growing private financial service firm in the United States.

Mr. Kaufman also manages a commercial real estate portfolio of approximately $15 million and was the key fundraiser for a distressed hotel construction fund of approximately $150 million.

Mr. Kaufman is frequently interviewed by local and national news organizations like FOX, ABC, CBS, CNN, and Bloomberg on the current financial markets and is a regular contributor to Entrepreneur.com.
"INVESTING IN REAL ESTATE DEBT IS THE SAFEST AND NOW THE EASIEST WAY TO INVEST IN REAL ESTATE."
— The January Fund —

The January Fund 506(c) Offering Platform

Terms of the offering

$50,000,000

(Hard Capped at $100MM)

    Distributions:
  • Target net (IRR) of 10% to 14%
  • 8% preferred return to Members, then all remaining profits split:
  • 50% to the Members
  • 50% to the Manager
  • No management fee or catch-up to the Manager
    Collateral:
  • First-Lien (superior) position in residential and commercial real estate projects
    Investment Term:
  • 5-year fund life (with two optional one-year extensions)
    Fees:
  • No asset management fee (excludes direct third-party expenses)
    Minimum Member Investment:
  • $1,000,000, but the Manager can agree to smaller amounts
  • Funds are called, over time, as each loan is funded
    Principal (Sponsor) Investment:
  • $3 million in total invested by Mr. Kaufman and close friends and family
    IRA, 401(k), SEP Investors:
  • Yes, according to IRS Section 512, income from The January Fund is not subject to UBIT.
    Income:
  • Paid quarterly
    Tax/Audit:
  • KPMG
    Liquidity:
  • 90 days notice (subject to available cash)
    Key Performance Factor:
  • The January Fund is focused on performance and not fees. There is no management fee or catch-up provision. The fund will receive no income until after the investors have received their preferred return.

Have a question about our offering?
Please complete the contact form and we will get back to you.

The January Fund — invest@thejanuaryfund.com — 5177 Richmond Avenue Suite 640 — Houston, TX 77056 — (214) 526-3863

The January Fund 506(c) Offering Platform

So Much More than what you See

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The January Fund 506(c) Investor Portal provides the opportunity for you to become approved as a “prospect", and learn more about our investment opportunity. You will have:

  • Access to the Private Placement Memorandum, which outlines our company and gives greater detail about our offering. Download a PDF to review on your time, read the ebook presentation online or request a hard copy of the documents;
  • Access to our SEC filing. Download a copy for your records or visit the sec.gov website;
  • View real time offering metrics of where we are in the offering process;
  • View the timeline of where you are in the investment process;
  • View company contact information and send emails directly to the administrator;
  • Easily upgrade to "investor" through the click of a button.

Ready to learn more about our investment opportunity?

Request Access now!