Question 1

How long has ILS been selling notes?

Accepted Answer

Our note program originated in 2017.

Question 2

Can I do my own due diligence?

Accepted Answer

Yes! While our notes have already been vetted by our highly trained team here at Investor Loan Source, we encourage our investors to do their own due diligence. Our underwriting is made available to you for review upon request.

Question 3

Do I need to be an accredited investor to participate in this offering?

Accepted Answer

To participate in our note sales program with our buyback promise you must be an Accredited Investor as defined by the SEC under Rule 501.

For most cases, an Accredited Investor is an individual whose income is over $200,000/year (for single persons) or $300,000/year (for married couples) or has a net worth over $1,000,000 not including equity in their principal residence.

Non-Accredited investors must be considered to be a “sophisticated investor” as defined by the SEC to buy our long-term notes without a buyback agreement and will be approved on an individual basis by management.

The commission defines a sophisticated investor as an individual or institution that “must have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment.”

Question 4

Can I invest with my IRA or LLC?

Accepted Answer

Absolutely! We welcome individual investors, self-directed IRA investors, LLCs, Trusts, partnerships, and more.

Question 5

What is the minimum investment?

Accepted Answer

The minimum investment is 90% of the unpaid principal balance (UPB) of that particular note.

If you are an unaccredited individual purchasing a note with no buyback agreement, you will be purchasing the note at 100% of the UPB.

Question 6

Are there any fees?

Accepted Answer

Yes, we charge $200 for document preparation and recording. If you are investing with a structured account, such as an IRA, we will discount that to our “in house” cost of $135.

Question 7

How long is my investment locked up for?

Accepted Answer

You are locked into your investment until the note pays off or we buy it back per the buyback agreement terms. If you purchase a long-term note with a buyback agreement we will offer to buy it back upon written request from the investor anytime after 2 years.

Question 8

What does ILS do to mitigate risk?

Accepted Answer

ILS generally originates notes at 70% UPB providing a 30% equity cushion. This means the value of the note you are buying is appraised at 30% more than what you are paying to buy the note.

Another way we mitigate risk is by offering a buy back agreement to our accredited individuals. This agreement states that if the note sits in default for a specified time period, we will purchase your interest in the note at UPB with interest through the payoff date! We also retain around a 10% ownership in each note we sell proving that we too have “skin in the game.”

Question 9

When can I expect to see returns on my investment?

Accepted Answer

Since our borrowers pay on their notes monthly, you should expect to receive your portion of interest via ACH on a monthly basis.

Question 10

How often will I be updated on my investment?

Accepted Answer

Monthly statements are sent to our investors straight from our servicing department. Feel free to call our note team anytime regarding additional specifics.

Question 11

Do you issue a 1099INT for tax purposes?

Accepted Answer

No, since our borrowers are using an entity for their loan we are not required to do so. However, if you would like to receive a year end statement showing interest earned for the year please reach out to us and we will be happy to provide one.

Question 12

How do I get in contact with a representative?

Accepted Answer

If you have any additional questions, please call 979-541-1280 or email us at invest@ils.cash. We'll be happy to assist you.

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