Iron Bridge Mortgage Fund is currently offering investors the opportunity to invest in Senior Secured Demand Notes, which return 6% interest (6.17% with compounding interest).
In everyday conversation, Iron Bridge calls these Senior Notes. But what does the full name mean?
Here’s the answer…
|IRON BRIDGE AT A GLANCE:|
|Years in Business:||9|
|Current States Lending In:||29|
|Borrower Net Profits:||$98,341,497|
What’s In A Name?
Senior Secured Demand Notes
The Senior Notes are senior in security interest to the Company’s existing Junior Notes and Equity Program capital. It is the most secure position of the Company’s investment options.
The Senior Noteholders are secured and protected by over $98 million in real estate collateral, over $20 million in Equity Program capital, and further protected by over $28 million in Junior Notes, which would all have to be charged off prior to a Senior Noteholder losing any of their principal investment. (all amounts are as of December 31, 2017).
Senior Noteholders can demand (or withdraw) from their Senior Notes intra-month, or add to their Senior Notes intra-month. This offers investors the ability to earn interest from the day Iron Bridge receives the funds through the day the funds are returned to the investor. It’s a great way for investors to earn an attractive rate of return on capital that might otherwise be sitting in the bank.
Debt securities are called notes, and senior notes take precedence over other unsecured notes. Iron Bridge Senior Secured Demand Notes pay interest, which is 6% monthly. With monthly compounding, this increases to 6.17%.
We invested with Iron Bridge for a number of reasons. One is that we can get a better return on our investment than we can in money market accounts or the uncertainties of the stock market. Knowing that Iron Bridge is backed by over $90 million of real estate is a comfort to us and having our funds available to us should we need them is a big plus. The monthly interest payments help with budgeting in retirement and have added confidence to our retirement portfolio. We have been happy with the performance and security of Iron Bridge and are considering additional investments.”Paul & Nancy W.
US States Operating In
Real Estate Collateral