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Who should submit an Application? How are the managed companies capitalized? Do all managed companies capitalize? What determines whether my project will be accepted? What is the minimum equity and/or debt investment? How long does an equity investment take? What will be the terms of an equity investment? How long will a debt investment (loan) take? What is my total expense obligation? How does Harbor Reserve make money? Why should I submit an Application to Harbor Reserve?
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."
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.
No. Harbor Reserve is a managing principal in all transactions.
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.
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.
How much money can Harbor Reserve access?
Harbor Reserve has direct access to over a billion dollars through Harbor Reserve registered and Preferred Investors™.
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.
Do all managed companies capitalize?
No. Some managed companies capitalize, some partially capitalize, and some don't capitalize at all.
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.
What is the minimum equity and/or debt investment?
There is no minimum equity investment or loan amount.
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.
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.
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.
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.
Can I expedite a funding request?
No. Harbor Reserve and the companies it manages work as quickly as possible to capitalize.
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.
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.
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.
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.
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.
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.
Harbor Reserve will only accept an Application submitted and signed by a principal or the principal's legal counsel.
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.
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:
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.
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.
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.
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.
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.
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.
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.
An investment contract and/or a unconditional loan commitment will be submitted by the Managed Company once due diligence is complete.
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.
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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