Equity Pledge Debt Fund 862
Type: Debt
Target: $5,000,000
Annual Return: 8.00% - 8.25%
Min-invest Amount: $10,000
Duration: 6 – 18 Months
| Fund Type | Private Equity Fund |
| Offering Amount | $5,000,000 |
| Estimated Return | 8.00 – 8.25% Annualized Return*1 |
| Investment Type | Equity Pledge Loan |
| Unit Price | $10,000 per Subscription Unit |
| Offering Date | July 2026 |
| Investment Timeline | 6 – 18 Months*2 |
| Dividend Schedule | Prepaid per 6 Month*3 |
*1 8.00% Annualized Return for Investment of 1-19 Units; 8.25% Annualized Return for Investment above 20 Units;
*2 Investors will receive a minimum of 6 months of dividend; dividends will be calculated in terms of days till Borrower repays the loan.
*3 After the first dividend period, Borrower owns 2 extension options, and investors will receive dividends accordingly at the same dividend rate.
| Expected Dividend Calendar | |||||||
|---|---|---|---|---|---|---|---|
| Round of Dividend | Investment Tranche | Financing Amount | Dividend Date *1 | Counting Date | Ending Date | Dividend Period | Notes |
| First | First Tranche | $500,000 | No Later than 8/15/2026 |
7/31/2026 | 1/30/2027 | 184 days | Prepaid Dividend*2 |
| Second Tranche | $500,000 | No Later than 9/15/2026 |
8/31/2026 | 1/30/2027 | 153 days | Prepaid Dividend | |
| Fourth Tranche | $1,000,000 | No Later than 10/15/2026 |
9/30/2026 | 1/30/2027 | 123 days | Prepaid Dividend | |
| Fifth Tranche | $1,000,000 | No Later than 11/15/2026 |
10/31/2026 | 1/30/2027 | 92 days | Prepaid Dividend | |
| Sixth Tranche | $1,000,000 | No Later than 12/15/2026 |
11/30/2026 | 1/30/2027 | 62 days | Prepaid Dividend | |
| Seventh Tranche | $1,000,000 | No Later than 1/15/2027 |
12/31/2026 | 1/30/2027 | 31 days | Prepaid Dividend | |
| Second | No Later than 2/15/2027 |
1/31/2027 | 7/30/2027 | 181 days | Extension Option Owned by Developer*3 | ||
| Third | No Later than 8/15/2027 |
7/31/2027 | 1/30/2028 | 184 days | Extension Option Owned by Developer | ||
*1 In case of holidays and non-working days, the dividend date will be automatically postponed to the next working day.
*2 Investors will receive a minimum of 6 months of dividends. All dividends will be calculated on a daily basis until the principal is repaid.
*3 After the first dividend period, the borrower has 2 extension options. During the extension periods, investors will receive dividends at the same dividend rate.
* Architectural renderings and photographs of projects previously undertaken by the development team.
- CrowdFunz Fund 862 will provide the borrower with a short-to-medium-term mezzanine loan. The borrower expects to use all loan proceeds provided by CrowdFunz Fund 862 to cover the project’s construction costs and related expenses, providing sufficient liquidity to ensure that construction is completed quickly and efficiently. Upon the fund’s maturity, the borrower expects to repay the loan using proceeds from the sale of the project’s condominium units, financing provided by a commercial bank, or cash proceeds from other real estate projects held by the borrower.
- The subject project of CrowdFunz Fund 862 has a lower debt leverage ratio than the general industry standard. The project’s loan-to-value ratio is 53.62%. The borrower’s net equity value is approximately $101,200,000, more than 50 times the total loan amount provided by Fund 862, demonstrating substantial equity value.
- The subject property is located in the core Long Island City area of Queens, New York City, and benefits from a prime location. The area has become one of New York City’s fastest-growing emerging communities over the past decade and is beginning to rival Manhattan’s traditionally desirable residential neighborhoods. Residents have stable incomes, and the location provides highly convenient access to Manhattan.
- The borrower has extensive local development experience and a strong commercial credit reputation. The borrower has more than 30 years of local real estate development experience, strong execution capabilities and substantial financial resources, with its commercial reputation widely recognized throughout the industry.
- Therefore, CrowdFunz believes that, with clearly defined lending agreements and legal rights and obligations between the parties, the short-to-medium-term debt investment made by Fund 862 has a relatively low risk of default and is suitable for investors seeking fixed-income investment products.
* Photographs of the project construction site.
Subscription Agreement (Only available to accredited investors)
Appraisal (Only available to accredited investors)