A Promissory Note is a written, legally enforceable promise by Douglas Peterson Investments, LLC, to pay you interest at the rate of 6% per year and to repay you your principal (the original amount that you invest).
The main risk is that it is theoretically possible that Douglas Peterson Investments, LLC, could become insolvent and unable to repay what you have lent to the Company and that Douglas Peterson, who guarantees the repayment of your loan to the Company, would also become unable to repay it. For a thorough discussion of this and other risks associated with the investment, please visit the “Risk Factors” section.
As soon as the Company receives funds from the sale of Promissory Notes, the Company immediately uses that money to pay down existing mortgage loans on certain properties in the Company’s assets. This helps increase the Company’s cash flow, free its Properties for new mortgage loans, and can decrease the Company’s overall cost of borrowing. All of those benefits will allow the Company to improve its Properties and expand its portfolio of commercial real estate.
The Company gets the money to pay interest, and repay principal, to Investors from the rents that it receives from tenants of its Properties, as well as periodic refinancings or sales of its Properties.
“Unsecured” means that, for making a loan to the Company as set forth in the Promissory Note, the Investor does not receive any mortgage collateral in any of the Company’s Properties or other assets. The Investor receives simply the Company’s written, legally enforceable promise to repay the Investor, and pay the Investor interest, while Douglas Peterson personally guaranties his Company’s promise.
No, the Company has never failed to repay money it has borrowed. The Company has borrowed or guaranteed the repayment of over $15,000,000 and has always made its payments of interest and principal in full and on time. To date, 30 different institutions or individuals have lent money to the Company.
The Company was established in 2004, so it has been in business for over eleven years.
This limitation is essential for allowing the Company’s debt offering to qualify for an exemption from Federal securities laws that makes the offering permissible without registering it with the United States Securities and Exchange Commission. The Company’s offering is on file with the State of New Mexico’s Securities Division.
Douglas Peterson is the 100% owner of Douglas Peterson Investments, LLC. A graduate of Babson College and Northwestern University School of Law, he has worked in the commercial real estate industry since 1997. Also, Peterson has been an active leader in New Mexico’s community. He completed a full term of six years on the Albuquerque Environmental Planning Commission, which he chaired for over two years of his tenure. From 2009 to 2011, he served the State of New Mexico as a member of the New Mexico State Transportation Commission. In addition to being licensed to practice law in the State of Illinois since 2003, Peterson became licensed to practice law in New Mexico in 2012 and has been a licensed real estate broker in the State of New Mexico since 1998.
Both a Promissory Note and a Certificate of Deposit are each written promises to repay money that is borrowed and to pay interest on that money at a fixed rate. However, a Certificate of Deposit is an obligation from a bank or other financial institution to make that payment and repayment, and that promise is guaranteed by the United States government through the Federal Deposit Insurance Corporation (FDIC); repayment of the amount of the Promissory Note is guaranteed by Douglas Peterson personally but not by any government. Additionally, a Certificate of Deposit normally allows for early withdrawal if the investor pays a penalty or something similar; the Promissory Notes offered by the Company do not allow for such early redemption and must be held by the Investor to maturity (subject to the Company’s right to pay it off early).
While a Promissory Note is a promise to repay money that is lent, it absolutely does not represent any ownership in the Company or any of its Properties or other assets. By contrast, stocks represent ownership in a company and generally fluctuate based on the value of that company and other factors. The Company is not offering stock.
The Company is not offering to sell investments in real estate, any of its Properties or any of its other assets.
Douglas Peterson’s personal guaranty is a written, legally enforceable document under which he binds himself to the obligation of Douglas Peterson Investments, LLC, to pay you your interest and principal in accordance with the Promissory Note that you buy.
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