For accredited investors · Reg D 506(c)
PML originates, underwrites, and services the loans we lend on. Accredited investors participate in the same notes — first-position, real-estate-collateralized, short-duration, and current-pay. Target yields 8 to 12 percent. Minimum commitment $100,000. No origination fees to investors.
This page is informational only. It is not an offer to sell or a solicitation of an offer to buy any security. Investment opportunities described here are offered only to accredited investors as defined under SEC Rule 501 of Regulation D, and only through definitive offering documents that include the relevant risk disclosures. Past performance does not guarantee future results. Real estate debt investments are illiquid and involve risk of partial or total loss of principal.
Why private real estate debt
Most fixed-income alternatives ask investors to choose between yield and duration: long bonds for yield, short paper for liquidity. First-position real estate notes break that trade-off. Six to eighteen months of duration, monthly current-pay coupon, and senior-secured collateral at conservative loan-to-value.
Every note is secured by a recorded first-position deed of trust or mortgage on the underlying property. We underwrite at conservative loan-to-value — portfolio-wide average 68 percent — with stress tests against a 15 to 20 percent value decline. The collateral pays, not the operator’s personal balance sheet.
Notes pay monthly coupons in cash, not in PIK or accruals. Most loans pay off in six to twelve months as borrowers sell, refinance, or stabilize the asset. That cadence lets investors redeploy capital as rate cycles and credit spreads change, instead of waiting out a multi-year private equity lockup.
The same team that sources the deal underwrites the loan, signs closing docs, and services it through payoff. No table-funded warehouse line, no third-party servicer collecting on our loans, no surprise off-loading to a debt fund a year after origination. Alignment runs deep because we hold these loans.
The capital strategy
Most of what was called “private credit” over the last decade was actually unsecured corporate debt. Real estate-backed first-position notes are a different asset class. Our job is to compound through cycles, not chase yield through bad subordination.
Every loan PML originates sits in first-lien position, recorded against the property. No mezzanine, no second-position, no preferred-equity dressed up as debt. If the loan defaults, we step into title ahead of every other claim on the property.
Portfolio-wide average loan-to-value of 68 percent. Construction loans are sized to as-completed value with retainage held back at each draw. Bridge loans are sized to as-is value with appraisal current. The asset has to absorb a 15 to 20 percent value decline before the loan is impaired.
The same five-person credit committee underwrites every loan we originate — from a $250,000 fix-and-flip in suburban Atlanta to a $10M construction loan in coastal California. No outsourced underwriting, no algorithm-only approvals, no rubber-stamp investor committee.
PML services every loan we originate from day one to payoff. Monthly cash collected, draws inspected, property visited if performance flags. No third-party servicer is gripping a $5M construction loan we wrote — it lives on our books, with our underwriter on the phone.
How investors participate
Whole-loan participations let investors hand-pick deals from a curated weekly pipeline. Fractional notes spread capital across a basket. The income fund pools commitments into the full origination platform. Investors choose by check size, diversification preference, and operational appetite.
Take an entire loan onto your balance sheet. We send curated deal flow weekly; you approve or pass. Loan is assigned to your name at funding. You hold a recorded first-position deed of trust. We service the loan, remit your coupon monthly, and handle payoff or default workout end-to-end.
Spread one commitment across a rolling pool of 10 to 30 active loans. Your principal is allocated as we close new deals; coupons remit monthly pro-rata. Diversification across geography, loan product, and borrower without the operational lift of selecting individual deals. Liquidity windows quarterly.
Family offices and institutional allocators commit a credit line PML draws against as we originate. Loans are co-funded pro-rata with PML’s own balance sheet, ensuring alignment on every deal. Reporting is institutional — monthly loan tape, quarterly portfolio review, audited financials. Custom structure available.
What returns actually look like
Three things worth pulling out of the table:
First, the spread between gross loan rate and net investor yield is ~100 basis points — the servicing fee, the cost of running the underwriting and asset-management platform. We do not stack additional management fees on top of carry. Second, the realized loss rate is below 1 percent across all originations 2019 to 2024, including the post-COVID multifamily reset and the 2023 regional bank crisis. Third, the duration is short. The average loan pays off in nine months, which means investor capital recycles roughly 1.3 times per year — compounding the coupon if you reinvest, supporting capital calls or distributions if you don’t.
Returns shown are historical and reflect 2024 portfolio performance. Forward yields will vary with rate environment, deal flow, and credit selection.
What investors should know
Real estate debt is not risk-free. The risks below are the ones most relevant to PML’s strategy. Definitive risk factors are disclosed in the offering documents you receive after requesting materials.
Despite first-position collateral, a borrower default triggers a workout that takes time and costs money. We have averaged 7 months from default to recovery in our prior workout cases, with full recovery of principal in all but a handful of loans — but a workout can pause coupon distributions and impair the IRR on that specific loan even when principal is preserved.
If property values decline materially after origination, the underwritten loan-to-value cushion shrinks. We stress for 15 to 20 percent declines at underwriting, but a deeper or sharper decline (regional shock, asset-class repricing) can erode that cushion. Investors bear the residual risk if a foreclosure sale recovers less than principal plus accrued interest.
Whole-loan participations and co-investment commitments cannot be exited mid-term. Fractional notes have quarterly liquidity windows subject to portfolio cash availability. Investors should plan to hold for the full term and treat any earlier liquidity as a bonus, not a feature. The illiquidity premium is part of the yield.
Coupon rates on new originations move with the broader rate environment. If rates fall sharply, new loans pay less, and capital coming off a recent payoff reinvests at lower yields. If rates rise sharply, existing loans look underpriced relative to new ones. We disclose current-coupon assumptions, not forward forecasts.
Representative funded deals
Three deals from the past twelve months — investor-side returns shown net of servicing fees. Property addresses redacted for borrower confidentiality. Full deal tape available to investors after qualification.
From inquiry to first allocation
Submit the inquiry form. We respond within one business day with an NDA and a private placement memorandum tailored to your check size and structure preference.
Verify accredited-investor status under SEC Rule 501. Self-certification with documentation, or third-party verification via our investor portal. Required before any specific deal flow is shared.
30 to 60 minutes with PML’s capital markets lead. Walk through the offering documents, ask questions, see a sample deal tape with full underwriting documentation.
Execute subscription documents and wire funds into the custody account. For whole-loan participations, we start sending curated deal flow within 48 hours.
Capital deploys on the first matching deal that closes. Monthly coupons begin the month after funding. Quarterly statements detail every loan, performance, and projected payoff.
Investor FAQ
$100,000 for fractional note participation, $250,000 for whole-loan participation, and $1,000,000 for a co-investment line. Below $100,000 we cannot economically onboard an accredited investor under Reg D 506(c) and recommend the inquiry be paused until check size reaches that floor.
Investors must meet the SEC’s accredited-investor definition under Rule 501 of Regulation D. The most common qualifying paths: individual income above $200,000 ($300,000 joint with spouse) for the past two years with expectation of the same in the current year; or net worth above $1,000,000 excluding primary residence. Certain professional licenses (Series 7, 65, 82) also qualify. Entities including most family offices, RIAs, and corporate treasuries qualify under separate entity rules. We verify accreditation before sharing deal flow.
Whole-loan participation: 50 basis points per annum servicing fee on outstanding principal. No origination fee, no carry, no performance fee. Fractional note participation: 1.25 percent management fee on committed capital plus a 10 percent performance fee on yields above an 8 percent hurdle — structured to align our economics with hitting the target yield, not skimming on principal. Co-investment line: custom, typically a flat servicing fee plus reporting cost recovery. All fees are disclosed in the offering documents you receive before subscription.
Whole-loan participations cannot be exited before the loan pays off. Fractional notes offer quarterly liquidity windows, with redemptions subject to available portfolio cash and a 5 percent quarterly cap on aggregate redemptions to protect remaining investors from forced loan sales. Co-investment lines are evergreen with a 12-month notice period for capital return. Plan to hold for the full term and treat liquidity windows as a backup, not a feature.
PML handles the workout end-to-end on every defaulted loan. We average 7 months from event of default to full resolution — typically through a borrower-paid forbearance and refinance, a deed-in-lieu, or a foreclosure sale. Coupon distributions on the specific defaulted loan pause during workout but resume from foreclosure or sale proceeds. Inception-to-date realized losses to investor principal: under 1 percent. We absorb workout legal costs and pass through net recoveries.
Subscribed but undeployed capital sits in a custody account at a large US bank, segregated from PML’s operating capital. Interest earned on the cash position accrues to the investor (currently around 4.5 percent annualized on money-market sweep). We deploy capital within 10 to 30 days of funding on typical pipeline; faster on whole-loan participation if you accept the next-matching deal.
Monthly: coupon distribution remittance with line-item detail per loan; current portfolio snapshot. Quarterly: full loan tape with performance status, weighted-average LTV, weighted-average remaining duration, and any deals in workout. Annual: audited financials for fund vehicles, K-1 tax statements issued by March 15 (or earlier where possible). Co-investment investors receive institutional reporting on request.
Coupon distributions are ordinary income, reported on a 1099-INT or K-1 depending on vehicle. Real estate notes do not generate the depreciation deductions of direct ownership; the tax treatment is closer to a corporate bond than to a rental property. Investors should consult their own tax advisor — the offering documents include a tax disclosure section but do not constitute tax advice.
PML co-invests its own balance-sheet capital alongside every investor commitment. On the co-investment line, PML funds a contractually defined percentage of every loan (typically 10 to 25 percent) before the line draws. On fractional notes, the GP commits a meaningful percentage of fund size. On whole-loan participation, PML retains the unsold portion of any loan it originates. Aligned through capital at stake, not just management fees.
Use the request-materials form on this page. We respond within one business day with the offering documents matched to your check size and structure preference. The first call is a 30 to 60 minute walkthrough — no commitment to subscribe, no pressure to allocate. Investors who proceed typically move from first inquiry to first allocation in 4 to 8 weeks, depending on accreditation verification and document review on the investor side.
One business day to materials. One call to walk through the strategy. No pressure, no minimums beyond what is disclosed above. Inquiry stays confidential.
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