With the opening of our newest fund, Garrow Niblick LLC, we thought it important to dissect the legal documents into an easily understandable Q&A format. The following 15 questions and answers clarify the purpose of this fund and what it takes to become involved as an Investor.
The 15 most asked questions about Garrow Niblick LLC.
Q. What does Niblick mean?
A. Before golf clubs used the current numerical designation, they had names. The “niblick” was the name for the club that we now know as the 9 iron. It was used for precise shots within 100 yards of the cup.
Q. Why was Garrow Niblick LLC formed?
A. Garrow Niblick was formed to provide short-term construction financing for residential production builders of pre-sold homes. We recognized the need for this type of financing based on the current banking environment and are determined to be a part of the solution while providing a return for our investors.
Q. What type of investment is Garrow Niblick LLC?
A. Garrow Niblick LLC is a Regulation D subscription as an unregistered security.
Q. Who can invest in Garrow Niblick LLC?
A. Garrow Niblick LLC is open to all Accredited Investors.
Q. What is an Accredited Investor?
A. An Accredited Investor must meet at least one of the following requirements.
*Income in excess of $200,000 individually or household income of $300,000
*Net worth in excess of $1,000,000 either individually or jointly with spouse
*Represents a trust in excess of $5,000,000
Q. Does Garrow Niblick LLC have an open and close date?
A. Yes, the fund opened on October 5, 2009 and will close December 31, 2010.
Q. How do I invest in Garrow Niblick LLC?
A. Complete the signature pages of the subscription agreement and the operating agreement and present them to a Garrow Niblick representative along with your check for the number of units you wish to purchase. After acceptance by the manager of the fund, your investment will be engaged.
Q. Is there a minimum amount of units I have to purchase?
A. Yes, you must enter the fund with a minimum of 10 units or $100,000. However there is no high side limit. You may purchase as many units as you are able.
Q. How much money are you hoping to capitalize the fund with?
A. Garrow Niblick LLC will not grant its first loan until the fund has at least $500,000. We have the immediate ability to place up to $3,000,000.
Q. What will my return look like if I invest with Garrow Niblick LLC?
A. The projected return is 80% of the coupon for underlying loan. This translates into an approximate annual return of 10% on your engaged funds.
Q. What do you mean by “engaged funds”?
A. Prudent business practices dictate that we hold a reserve account aside for unforeseen costs. A small percentage of each investment will be held in an escrow type account to meet such needs. However, as the capital accumulates in the fund the lower the percentage that must be held aside from each investor.
Q. How long are the short-term loans to the contractor?
A. Underlying loans will be granted for 90 days with a 90 day renewal option.
Q. What type of protection do you have in place to keep my investment safe?
A. There are many, however, one of the most important is that each loan will be in the first position in lien priority.
Q. If I can’t commit my money for two years can I get out of Garrow Niblick before the sunset date?
A. Yes, the egress provisions allow investors to completely withdraw their investment and accrued return, however, a 120 day wait period will be required if the funds are not immediately available.
Q. Is there a fee associated with investing in Garrow Niblick LLC?
A. Yes, a one-time fee of 2% of the investment subscription will be assessed at time of acceptance.
THIS IS NOT INTENDED TO BE A LEGAL DOCUMENT. PLEASE CONSULT LLC OPERATING AGREEMENT, SUBSCRIPTION AGREEMENT AND PRIVATE PLACEMENT MEMORANDUM FOR COMPLETE DETAILS.
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