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Do
all managed companies capitalize?
What
is my total expense obligation?
How
does Harbor Reserve make money?
Why
should I submit an Application to Harbor Reserve?

Index
of Procedural Headings
Harbor
Reserve, Ltd. is a private investment
company managing single-purpose entities* that raise equity and debt capital for accepted projects
through
Direct
Private Placement™ exclusively with Harbor Reserve Preferred™ and registered investors.
Each accepted project is professionally packaged
by Harbor Reserve as an attractive investment for
one or more Harbor Reserve investors; these investors
receive project information directly from managed
companies and are able to independently
decide whether to invest. With Harbor Reserve a
project sponsor avoids the expenses, difficulties, and
liabilities that are typically associated with raising
money.
*Each
such entity is referred to as a "Managed
Company."
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Who
should submit an Application?
Any person or company with a viable
venture in need of funding should
consider submitting an Application to have a project
accepted by Harbor Reserve.
The Direct Private Placement is ideal for a
sponsor seeking equity investment
capital for
a real estate, business, technology, entertainment,
energy, or other asset-based project or
a short-term loan
secured by real estate or other asset who
is unable to
borrow through traditional lending sources.
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Is
Harbor Reserve a broker?
No.
Harbor Reserve is a managing principal in all transactions.
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Who
is behind Harbor Reserve?
Harbor
Reserve is owned and managed by Jeffrey
Easley. Mr.
Easley is an attorney at law, with 20 years of experience,
practicing in the area of private-sector international
finance.
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How
are the managed companies capitalized?
Managed
companies are capitalized* exclusively through Harbor
Reserve and its extensive proprietary network of Preferred Investors™ and other
Harbor Reserve registered investors.
Many of these investors are not known or accessible
by the public and include wealthy
families and individuals, trusts, private equity firms,
hedge funds, banks, venture capital firms, investment companies,
and other private and institutional investors. Harbor
Reserve is also able to directly access thousands
of other private equity firms, banks, hedge funds,
investment companies, lenders, and other private
firms and institutions throughout the world. This
means your funding project will have professional
exposure that
it could not possibly otherwise receive.
*As
used in this and subsequent paragraphs the terms
"capitalize," "capitalization," and "capitalized"
mean the Managed Company has received sufficient
approvals from Harbor Reserve registered investors
to make the full project investment. These
approvals are always conditional upon favorable
due diligence results. See
the "Procedures" section below for further
information.
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How
much money can Harbor Reserve access?
Harbor
Reserve has direct access to over a billion dollars through Harbor Reserve
registered and Preferred
Investors™.
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When
does a Managed Company guaranty investment?
A
Managed Company is not able to guaranty an investment
until it has capitalized and approved the project.
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Do all managed companies capitalize?
No.
Some managed companies capitalize, some partially
capitalize, and some don't capitalize at all.
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What
determines whether my project will be accepted?
Harbor
Reserve does not accept all projects. The acceptance
decision is based upon financial factors, project
position relative to competition, aesthetic considerations, and
Harbor Reserve's evaluation of current registered
investor objectives. Neither Harbor Reserve
nor the Managed Company make money unless the Direct
Private Placement is successful and the funding
is finalized.
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What
is the minimum equity and/or debt investment?
There
is no
minimum equity investment or loan
amount.
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How
long does an equity investment take?
An
equity investment will be scheduled to take no
longer than 80 days to finalize: 10
days for preparation of the Managed Company,
45 days for the Managed Company to capitalize,
15 days for the Managed Company to complete
due diligence, and 10 days to close.
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What
will be the terms of an equity investment?
Equity
participation, management, and ownership
will vary depending upon the proportion
of capital invested to
total equity and the overall projected outcome
for the project. Most equity investments require
50% ownership. You should anticipate an equity
partner will usually require a preferred yearly internal
rate of return
on investment of from 12 to 24 percent with scaled
income participation as profits
increase. Buy-out and buy-down provisions
are generally permitted.
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How
long will a debt investment (loan) take?
A
real estate secured debt investment, or
loan, will be scheduled to take no
longer than 65 days to finalize: 10
days for preparation of the Managed Company,
30 days for the Managed Company to capitalize,
15 days for the Managed Company to complete
due diligence, and 10 days to close.
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What
will be the terms of a loan?
Debt
funding secured by real estate usually involves a period of 3 years or
less; yearly interest rates greater
than those of commercial banks but less than those
of "hard money" lenders (usually between
12% and 17%); interest-only
payments or payments including long-term amortized
principal; a scaled prepayment
penalty; and possible profit participation.
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Can
I expedite a funding request?
No.
Harbor Reserve and the companies it manages work
as quickly as possible to capitalize.
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What
is my total expense obligation?
The
initial preparation expense is only $2,500 payable
to Harbor Reserve within 3 days from the date you and the proposed
Managed
Company agree on the initial investment
terms. Once the Managed Company
is capitalized it will issue a letter of intent or letter
of conditional commitment which will include an
itemization of any due diligence, closing, or other
expenses. The Managed Company will have no
reason or incentive to inflate expenses because
it has successfully completed the capitalization
process and only makes money if the transaction
closes. In addition, you will not be required
to proceed with the funding if not satisfied with
the terms presented by the LOI or LOC.
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How
does Harbor Reserve make money?
Harbor
Reserve gets paid for its efforts out of the capital
that a managed company raises and owns a small part
of each managed company.
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Are
there any managed
companies currently in pre-funding?
Yes.
There
are always managed companies
in various stages of pre-funding (preparation, capitalization,
or final due diligence – see below). If
you are interested in learning about the opportunities
that are capitalizing or forming please
visit the invest page
of this site or contact Harbor Reserve.
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Does
Harbor Reserve disclose investment information?
No.
Harbor Reserve's firm policy is to maintain absolute confidentiality with regard
to Harbor Reserve investors, projects, managed companies,
and investments. When considering the rationale behind
Harbor Reserve's confidentiality policy it
is important to keep in mind that Harbor Reserve
does not act as a broker and does not invest
directly into projects. Everything is done through
managed companies and there will be one Managed Company responsible
for your very specific project. This
company will
not have any investment history, whatsoever, but will
be pursuing a Direct Private Placement through
Harbor Reserve and one or more Harbor Reserve investors with varying
degrees of investment experience.
What may or may not have transpired with other
managed companies has no relevance
or application
to your project.
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Why
should I submit an Application to Harbor Reserve?
If
your project is accepted it will be professionally
packaged and presented to hundreds of private
and institutional equity and debt investors, many
investors you could not access other than through
Harbor Reserve, that are actively looking for good investment
opportunities.
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Broker
Information
Who
May Apply
When
to Apply
Application
Supporting
Documents
The
Acceptance Process

Broker
Information
Harbor
Reserve will only accept project submissions from
pre-approved brokers: to be pre-approved a broker
must acknowledge that he or she has read this
page and understands Harbor Reserve's methods and
procedures. A pre-approved broker will be protected
at funding.
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Who
May Apply
Harbor
Reserve will only accept an Application submitted
and signed
by a principal or the principal's legal counsel.
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When
to Apply
Harbor
Reserve provides very thorough information
through this site, receives many funding requests,
and acts promptly in conducting initial project
evaluations; therefore, there are short deadlines
once an Application is submitted. Submit an
Application
only after you have studied the information at this
site and are ready to proceed in the event your project is accepted
by Harbor Reserve.
Any project that is submitted more than once will
not be considered by Harbor Reserve unless it is
accompanied by a $1,500 re-application fee.
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Application
Harbor Reserve will
only review or consider a project for which
it has received
a completed Application, the available
supporting
documents itemized in the Application, and the
$1,000 application deposit. The application deposit
is designed to eliminate frivolous applications
and it will
be promptly returned to you if either Harbor Reserve
does not accept your project or you and the Managed Company
are unable to agree on the initial investment terms. The Application form
is available
both in MS Word (online completion) and PDF (print
and complete) formats through the following links:
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Supporting
Documents
A
list of possible supporting documents is found in the Application
form; however, an offering memorandum or
business plan is preferred. Because
Harbor
Reserve funding is project-based you will not
be
required to provide a personal financial statement, a
credit
report, or personal tax returns.
Documents that cannot be delivered by email or fax
should be delivered to Harbor Reserve's Washington,
DC, office.
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The
Acceptance Process
After you submit your
Application, supporting documents, and application
deposit,
Harbor
Reserve will evaluate the project data, may request
additional information, and, within approximately
7 days, will provide an acceptance decision. If
your project is accepted you will have up to 7 days to sign
and return the Acceptance Contract.* If you do not
sign and return the Acceptance Contract within 7
days you will lose your application deposit.
*To review the Harbor Reserve Acceptance Contract
form
click
here.
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Initial
Term Sheet
Within
3 business days following Harbor Reserve's receipt of the signed
Acceptance
Contract the proposed Managed Company will provide you with a
summary of the projected investment and/or loan
terms. You will have 3 days to submit any proposed
modifications to the initial terms; but should keep
in mind that modifications may impact Managed Company
capitalization. If you do not attempt in good faith
to reach agreement on initial terms your application
deposit will be forfeited. Once the initial terms have been
determined you will have 3 days to
provide $2,500 for preparation expenses, less the $1,000 application deposit, by
certified funds or bank wire transfer. The initial
investment terms are always subject to change
based upon the results of preliminary due diligence
and the capitalization process; however, if there
are any changes the Managed Company will make every reasonable
effort
to assure that they meet your needs and expectations.
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Preparation
During
the first 10 days following agreement on the initial
terms, or longer as reasonably necessary given the
circumstances of the project, the Managed Company will conduct a preliminary due diligence investigation
of the project and prepare a professional presentation
of the offering for Harbor Reserve investors. Preliminary due diligence involves
the Managed Company accumulating and analyzing project
information without incurring any third-party expenses
for which the sponsor would be liable.
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Capitalization
During
the capitalization phase the Managed Company will
pursue a Direct Private Placement™ with Harbor
Reserve Preferred Investors™ and other Harbor Reserve registered investors.
This process may involve the conditional sale of
one or more interests in the Managed Company, the
"condition" being the Managed Company's
final approval of the project following a confirming
due diligence process, or it may involve a joint
venture with an investor or lender.
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Letter of Intent
or Conditional Commitment
Once
the Managed Company is capitalized it will issue a letter
of intent to proceed with an equity investment
and/or a letter of conditional commitment to proceed
with a loan. This document will included a recital
of the investment or loan terms and an itemization
of any due diligence, closing, or other expenses. You
will have the option of proceeding or declining
the terms as presented by the Managed Company.
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Confirming
Due Diligence
After
the letter of intent or letter of conditional commitment is issued
and approved the Managed Company will conduct a
confirming due diligence
investigation of the project. At this point the
Managed Company investors are in place and the objective
is simply to confirm that the project information
is still accurate and close the funding.
Harbor Reserve and the Managed Company only make
money if the funding closes. With this time-tested
procedure there is no incentive to charge for due
diligence and then not fund the project. The
confirming due diligence process may involve
a site visit, or project inspection, and can usually
be completed within 15 days unless there is a delay
caused by a third-party contractor (e.g., appraiser). If the Managed
Company does not approve the project for the stated
investment it will attempt to remedy any problems
or
re-negotiate the investment.
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Contract and/or Commitment
An investment
contract and/or a unconditional loan commitment will be submitted by
the Managed Company once
due diligence is complete.
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Closing
The
equity and/or debt
investment will be finalized at a closing generally
within 10 days of an investment contract and/or
a loan commitment.
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Confidentiality
All
project submission and investment information is kept confidential.
Neither Harbor Reserve nor the Managed Company will release information
about investors, managed companies, or transactions.
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