FREQUENTLY ASKED QUESTIONS
When you invest in Tiger & Bulldog Ohio Fund, you will be investing in high-interest, short-term promissory notes issued by real estate developers to finance the purchase and repair of residential properties in Ohio. Our investors find this structure desirable since it provides a predictable return each and every quarter. It also provides our investors with the flexibility to receive a direct deposit each quarter or reinvest the interest for faster growth. Our promissory notes typically have one-year terms, and are issued by real estate developers to finance the purchase and repair of residential properties in Ohio. Tiger & Bulldog works with local mortgage originators who qualify loan opportunities with conservative criteria.
Ohio is the 7th most populated state in the U.S., with 11.7M people. Three major cities have more than 2M people (Cleveland, Columbus and Cincinnati), and several other large cities – including Dayton, Toledo, Youngstown and Akron. Ohio has the 10th highest in population density in the country.
Unlike most other states, owning a home in Ohio is more affordable than renting. Oho has a 65+% homeownership rate with median home values 41% below the national average.
The Tiger & Bulldog Ohio Fund is targeting double digit returns annually, payable quarterly.
Following is a short summary of some of the key risks. A more complete list of risk factors is included in the confidential offering memorandum.
Default by Borrowers. Tiger & Bulldog works exclusively with underwriters that have strong track records of success, and very low default rates. For example, our initial loan originator, Jag Enterprises, has never experienced an investor default, and all investors in Jag underwritten loans have received full payment of interest and principal. However, despite our efforts to ensure that our borrowers have the financial ability to repay their loans, there is always a risk that a borrower will default. If a borrower defaults, Tiger & Bulldog will work with the mortgage underwriter to repossess the property, secure another experienced developer in our network to finish the repair work, and then sell the property as promptly as possible. Our first lien position and relatively small loan sizes are intended to mitigate the materiality of such default to the Fund overall as well as to any specific investor.
Reduced Demand for Loans. Tiger & Bulldog’s goal is to keep returns to investors high while maintaining a conservative profit. If the demand for loans is not equal to the amount raised by the Ohio Fund, it could impact our ability to pay the targeted return. If that does occur, then we would explore other options, including securing additional underwriter partners, lending in new markets, or returning capital to investors.
Over the past decade lending standards have become more stringent, making access to capital difficult for many borrowers, especially those with less than perfect credit. Additionally, banks have generally retreated from offering commercial and real estate investment loan products. Private lending programs, like this one being offered by Tiger & Bulldog, have emerged to fill the gap. Like traditional bank lenders, our loans are based on the equity within the property and we only loan to reputable, professional real estate developers that have cleared background checks and financial due diligence. Unlike traditional banks, the process takes days rather than weeks to reach a decision and fund, and we may loan to borrowers with lower credit scores if the project being funded satisfies the other underwriting criteria.
Tiger & Bulldog strives to deliver results for investors. We are committed to communicating openly and effectively with our funders and using their investment dollars judiciously.
Your investment is protected by several layers of security.
First lien position. The funds that Tiger & Bulldog holds on your behalf are invested in first secured promissory notes that are backed by a property being refurbished or repaired by a professional developer. Being ‘first secured’ means that in the event of a default, we get our interest and principal paid before any other creditor gets paid.
Verified Property. Due diligence is conducted by the underwriter to verify that the property and the work the developer is proposing for the property will increase the property’s value and that the expected “value-after-repair” is sufficient to ensure the loan will be repaid in full.
Low loan to value ratio. We loan no more than 60% of the estimated value of the property after the repair, meaning that each borrower has significant “skin-in-game” and is less likely to default. This is intended to ensure that even if there is a substantial disruption to the housing market, the Fund’s investments will have a higher likelihood of remaining intact.
Reputable, professional developers and personal guarantees. We only loan to reputable, professional real estate developers with proven track records of paying on time. We conduct background checks and financial due diligence on developers and require developers to provide a personal guarantee for all projects.
Tiger & Bulldog generates interest income for its investors that is taxed, on a pass-through basis, as ordinary income (except to the extent the investment is being made by from a tax-exempt entity). Investors should consult their own tax advisors about an investment in the Fund.
Minimum investment is $100,000 with a minimum one-year holding period.
In a limited partnership, the general partner is responsible for making all investment and management decisions on behalf of the limited partners. In exchange for giving up management control to the general partner, each limited partner is able to limit its liability to the amount of its investment only.
The Tiger & Bulldog Ohio Fund lifts up neighborhoods and boosts local economies. We help the communities we invest in grow and thrive.
Tiger & Bulldog supports entrepreneurs and their real estate development businesses. We enable experienced developers to gain access to money easily and quickly so they can continue buying, selling and revitilizing communities. We help build livelihoods.
