ABOUT THE BLC PRIME LENDING FUND, LLC:

 

Offering Structure:

BLC Prime Lending Fund, LLC, a Delaware Limited Liability Company is offering to accredited investors only, up to $50,000,000 aggregate principal amount of its Senior and Subordinated Secured Promissory Notes. The minimum investment amount per investor is $100,000, although the Fund may, in its sole discretion, lower this requirement with respect to any particular investor.  The Offering shall terminate upon the sale of an aggregate of $50,000,000 principal amount of Notes or December 31, 2018.

The Notes are offered when, as and if issued, subject to the right of the fund, in its sole discretion, to approve or reject any subscription and subject to certain other conditions described in the Summary Private Placement Offering and its exhibits. The Offering may be withdrawn at any time before the initial closing or any subsequent closing and is specifically made subject to the terms described in this Memorandum. The Fund reserves the right to reject any subscription, in whole or in part, for any reason whatsoever or to allot to any prospective investor less than the principal amount of the Note subscribed for by such prospective investor.

The Offering may be withdrawn at any time before the initial closing or any subsequent closing and is specifically made subject to the terms described in this Memorandum. The Fund reserves the right to reject any subscription, in whole or in part, for any reason whatsoever or to allot to any prospective investor less than the principal amount of the Note subscribed for by such prospective investor.  Rejected subscriptions will be promptly returned to the subscriber with the amount of the rejected subscription funds.

Overview:

BLC Prime Lending Fund, LLC has been formed by BLC Fund Advisors, LLC, a Delaware Limited Liability Company which intends to serve as Fund Manager, to provide investors with an opportunity to invest in real estate lending as an investment vehicle.

The Fund Manager believes there is a significant need for asset-backed financing for borrowers who maintain strong equity positions in real estate properties and the ability to service debt independent of their personal financial means.

The Originator of the Fund intends to underwrite loans primarily with an average LTV of 65%, however no individual loan shall exceed 75%.  With the goal of providing income in the form of first lien mortgages and deeds of trust secured by real estate, as a way to mitigate downside protection, while targeting a 9% return to investors.  Strong borrower equity positions will be the goal of the Fund’s investment strategy.

The Fund Manager believes that regulated banks relying on the secondary market for the resale of their loans have made significant errors by not requiring more equity to be at risk on the part of borrowers.  Also, due to the amount of red tape that often must be overcome in order to successfully achieve loan approval from a bank, real estate lending opportunities requiring shorter than normal time frames can be difficult for institutional banks to consider.  The Fund Manager believes that these and many other situations have created the need and opportunity for private real estate funds such as the BLC Prime Lending Fund, LLC. The Fund Manager also believes that it is well positioned to create an attractive real estate lending investment opportunity by: (1) capitalizing on the shortcomings of institutional banking operations, (2) streamlining the funding process for transactions with short funding deadlines, (3) utilizing the Originator’s extensive knowledge and relationship network and (4) utilizing the Originator’s and Fund Manager’s established track records of prudent risk management disciplined decision making and strategic execution.

The Fund may seek to enhance returns on its investments through the use of moderate leverage.  The Fund intends to obtain multiple leverage sources to be secured by individual loans held by the fund.  In addition the Fund may also enter into a credit facility with one or more financing sources secured by future capital commitments.