Your real estate investment questions answered
Anvita Capital Fund LLC offers three series of promissory notes: Series 1, Series 2, and Series 3. All series require a minimum investment of $100,000 per Note, though the Manager may waive or reduce this amount at its discretion. All Notes have a term of 36 months with three one-year extension options at the Manager's discretion, and a 5% prepayment penalty if requested by the Holder (0% if elected by the Company). The key differences are:
- Series 1 Notes: Offer an 11% annual simple/non-compounding interest rate with quarterly interest-only payments.
- Series 2 Notes: Offer a 12% annual simple/non-compounding interest rate with annual payments.
- Series 3 Notes: Offer a 15% p.a. compounding annually (12% if withdrawn within 36 months). The entire principal amount, plus any accrued and unpaid interest, is due as a single payment on the last day of the Note Term.
- Limited Security Interest: Notes are secured only by the Company's assets (primarily the LOCs), not directly by the underlying real estate properties.
- No Ownership or Control: Investors are creditors, not owners, with no voting rights or say in the Company's management or investment decisions.
- Dependency on Anvita Group: The success of the investment is heavily reliant on the operational and financial success of Anvita Group, which develops all the financed properties.
- Conflicts of Interest: As Anvita Group is owned by affiliates of the Manager, costs for development and construction may not be independently negotiated, potentially reducing profitability.
- International Investment Risks: Investments in India, UAE, and other foreign countries expose investors to political, economic, currency, and regulatory risks, as well as less transparent accounting standards.
- Lack of Liquidity: There is no public market for the Notes, meaning investors must be prepared to hold their investment for an indefinite period.
- Development Stage Business: The Company has a limited operating history and may experience initial operating losses and negative cash flows.
- Subordination: Payments on Notes are subordinate to any senior liabilities and expenses of the Company.
The United States Securities and Exchange Commission (SEC) does not pass upon the merits of or give its approval to any securities offered or the terms of the offering. The Notes offered by Anvita Capital Fund LLC have not been registered under the Securities Act of 1933 or the securities laws of certain states. They are being offered and sold in reliance on exemptions from registration requirements, primarily Section 4(2) of the Securities Act and Rule 506(c) of Regulation D. The SEC and any state securities commission have not made an independent determination that these securities are exempt from registration, nor have they approved or disapproved of the offering's merits or the accuracy of the Private Placement Memorandum. Any representation to the contrary is unlawful. Investors must rely on their own examination of the Company and the offering's terms, including the merits and risks involved
U.S. investors receive Form 1099-INT, which reports the interest income you earned from your investment in the Fund.
Non-U.S. investors receive Form 1042-S, which reports U.S.-sourced interest paid and any taxes withheld.