The main reasons investors choose hard money loans are:

• The speed with which they can obtain funds in order to not miss out on a deal.

• A profitable outcome with higher costs is much more favorable than missing out on an investment opportunity.

Arc Capital Management has been lending to students and graduates of the Milwaukee REIA Mentoring Program since 2017. These loans were funded with a mix of Arc Capital Fund capital and private investor funds.

 We want this fund to be available to as many of our investors as possible, so we’ve made the minimum investment $60,000. Investors can invest either with self-directed IRA/401K/SEP or other personal capital. This fund can accept funds of each type form the same investor and be tax compliant.

Yes, and more than 75% of our current and past private investors have used retirement funds. Through our partnership with Equity Trust Corporation (ETC), or another similar custodian, investors can move 401(k) and/or IRA funds to a custodian to invest directly into the Arc Capital Fund. Monthly interest payments are then made directly into your account.

Please check with your financial, tax and legal professional as Sponsors do not provide financial, tax or legal advice and the above is not intended to or should be construed as such advice. Your specific circumstances may, and likely will, vary.

Our minimum hold period is one year, which can then be called for return by either party with a repayment timing of 90 days or less. Earned yield will be paid through the return date of invested capital.

With investor funds being used to underwrite loans that have a 4-6 month repayment periods, we need to ensure that we maintain adequate levels of liquidity and funding at all times.

Arc Capital Management only lends to LLCs (not to individuals) and to rehabbers focused on 1 - 4 unit properties. Lending only to LLCs significantly lowers investor risk.

No, based on the structure of the Fund, the associated investments, and how the investments are held. We would, however, suggest confirming this with your accountant if you will be investing with IRA/401K funds.

The fund raises capital for the sole purpose of making real estate loans to Milwaukee REIA members focused on rehabs/fix and flips in the Greater Milwaukee Area. We are only focused on lending on properties in the greater Milwaukee Area as we fully understand this market.

The Milwaukee Real Estate Investment association (REIA) is a for-profit, member based organization of 550+ real estate professionals/investors that is owned and managed by Aimful Companies (owner of Arc Capital Management).

We began lending to all Milwaukee REIA members in late 2023, after listening to the feedback from members who desired a lending source for Milwaukee REIA members funded in part by Milwaukee REIA members.

Arc Capital Management collects interest, points, and fees from their borrowers on each funded loan, which we use to pay our investors and cover our business expenses. Each loan we fund includes a 3% origination fee and an interest rate ranging from 12-15% (based on borrower’s experience, property being lent on, and other intangibles).

We pay each investor 1/12th of their 10% interest on the last business day of each month. Your funds are deposited directly into your account through ACH Payment. Interest payments cannot be directly reinvested into the fund.

No.

We take a 1st lien position on each property we lend on. Additionally, we ensure that each borrower has cash for a down payment, closing costs and fees, and cash reserves/collateral to support monthly interest payments.

Arc Capital Management will cure losses from any loan defaults out of the funds loan profits. This includes the fund being responsible for legal and administrative costs related to loan defaults.