Prefer to start with a quick video? Click here for a brief introduction to the Assuravest fund, from CEO Greg Hughes.

Terms

Assuravest, LLC offers accredited investors the option to invest a minimum of $10,000 at a fixed rate of return dependent upon the investment level. Investors have the option to receive monthly dividends or to reinvest their return. Investments can be redeemed at any time with a 60-day notice. Redemptions requested within the first 24 months from the date of capital contribution will be return of principal only and the investor shall forfeit all earned income on the withdrawn portion. Redemptions after 24 months receive the principal plus the earned investor’s preferred return.

Preferred Return to Investors:

 
Total Invested Preferred Return
$10,000 to $99,999 10%
$100,000 to $199,999 12%
$200,000 to $499,999 14%
$500,000 to $999,999 16%
$1,000,000 + 18%

 

Monthly Dividend Optional up to the Investor’s Preferred Return
Reinvested Returns Compounded Annually
Lock-up Period None
Redemption Request 60 Day Notice
Capital Statement Monthly
Redemption in First 24 Months Return of Principal
Redemption after 24 Months Principal Plus Earned Investor’s Return
from Initial Capital Contribution

 

Strategy

Assuravest, LLC purchases non-performing residential real estate notes in bulk at a steep discount.

While working with the borrower, we use a multitude of profitable and creative strategies that bring the mortgage to re-performing status or to be paid off.  Purchasing the non-performing notes at such a steep discount gives us tremendous flexibility, as does our proprietary workout solution that is not available in the traditional mortgage industry.

Our objective is to keep families in their homes with an affordable solution for long-term success while producing attractive returns for our investors.

Portfolio Breakdown

This is how our portfolio breaks out with our multitude of solutions:

Sale of Asset Category Explanations:

Sale of Re-Performing Notes (42%) – The borrower has resumed making regular monthly payments and has paid off a portion of the arrears. These are the most valuable to the portfolio as they become seasoned over time and can be sold.

Drawer Notes (21%) – These notes have very little value due to multiple events, such as a BK or foreclosure from the 1st. History has shown that 21% of the portfolio falls into this category.  We call them “drawer notes” because we stick them in a drawer for a possible payoff at a future date. They can also be sold as bad debt. We assign a zero value to them in our model.

Discounted Settlement (24%) – A profitable payoff agreement has been reached. The settlement is substantially less than the total owed, but more than the purchase price and expenses of owning the note.

Real Estate Owned (REO) (9%) – The fund has foreclosed and now owns the property.  The 1st mortgage is still in place, yet the fund is not liable for the 1st and it remains as a lien against the property.

Homeruns (4%) – The borrower has paid off the complete amount owed or a large portion thereof.

Advantages

Relationships + Deal Flow + Diversification = Protection

Deal flow and relationships are our big advantages. We piggyback with five different hedge funds to acquire large purchases from major lenders and banks. This allows us access to essentially unlimited deal flow and the ability to purchase these notes in bulk at very steep discounts.

Through that deal flow, we gain another advantage: protecting our investors through diversification.  We purchase notes in volume from all over the country. We know all the notes we purchase will not be winners — even with our extensive due diligence — but with volume comes diversification, which adds another layer of protection to our portfolio.

Assuravest Fund Basics

In this 90-second video, Hughes Capital CEO Greg Hughes provides a quick look at the strategy and benefits of the Assuravest non-performing real estate mortgage fund.

This is not an offer to buy or sell any security or interest.  Any such offer or solicitation may be made only by delivery of the fund’s confidential private offering memorandum and only to accredited investors in jurisdictions where permitted by law.  Past performance is not indicative of future results.  The information transmitted in this email is intended for the named addressee(s) only.  As this email may contain confidential and/or privileged information, if you are not the intended recipient, you are not authorized to retain, read, copy or disseminate this email or any part of it.  Hughes Private Capital, LLC is limited to accepting only Accredited Investors with a minimum of $10,000 or more for investment.  A partial definition for an Accredited Investor is a natural person whose individual “net worth,” or joint net worth with Client’s spouse, exceeds $1,000,000 excluding the value of primary residence; or a natural person who had an individual income in excess of $200,000 in each of the two most-recent years or joint income with Client’s spouse in excess of $300,000 in each of those years.
 
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