Renaissance
New Member
We are looking to finance a business startup for the purchase, rehab, and resale of distressed U.S. residential real estate for profit in NY State. We want to finance the purchase of the real estate by offering short term promissory notes to lenders that mature within 270 days of issue. The notes will be used specifically to finance the purchase of the real estate. For each note, we will grant a security interest in the property secured by the note and will register a UCC lien against the property for the note. The note will pay interest only on a monthly basis and will pay a balloon payment for the principal on maturity or when the property sells, whichever comes first. In all instances the note will mature within 9 months of issue. We have sufficient operating capital to service the debt in the event the properties do not sell within 270 days.
Because we are providing short term promissory notes (less than 9 months), secured by assets owned by the business (real estate), are we exempt from filing with both the SEC AND the NY Dept of Law?
If not what registrations do we need to complete?
Because we are providing short term promissory notes (less than 9 months), secured by assets owned by the business (real estate), are we exempt from filing with both the SEC AND the NY Dept of Law?
If not what registrations do we need to complete?