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Connect Invest II LLC

Sponsored by Connect Invest·

Unknown· Debt· LLC · 3 classes· ● Low· PPM v1· Updated 26d ago
3 data notes▶
Unusual structureUnscored: absolute lp takeUnscored: pref quality
Run the numbers
Composite
53.3
median 36 +17
Pref Returnⓘ
—
median 8.0% · Diversified Real Estate
LP Take (Base)ⓘ
—
median 85.9% · Diversified Real Estate
GP Commitⓘ
0.0%
median 0.0% +0.0%
Min Investment
$500
ticket size
Offering Size
$61M
target raise
Cascade · Distributions

Where each dollar goes

$875K
LP $850K · Fees $25K · GP $0
GROSS PROCEEDS$875KGPFFees to Manager$25,000 · 2.9% of grossLPT1Return of Capital$500,000 · 57.1% of grossLPGPT4Residual Split (100% / 0%) · 40.0%Limited Partners · $350KGeneral Partner · $0pool fully distributed
Standard scenario · $500K equity · 5y hold · 1.75× exitRun your own cascade →
Class structure · 3 classes· viewing as Series C Notes

How Connect Invest II LLC divides the cap table

The cascade above is filtered to Series C Notes. Reset to blended view.

Deal diligence21 findings · worst high

Automated checks across the fund's extracted PPM. Every finding is shown with the evidence it's based on — proven numbers or a verbatim quote and page.

Document quality

Drafting defects found in the PPM prose — numeric inconsistencies, broken cross-references, unfilled placeholders, and defined-term problems. Each is shown with the offending quote and its page.

Numeric inconsistency — Ignite commencement of operations: 1995 vs. March 2011

High

The PPM narrative states Ignite commenced operations in 1995, while the financial statement notes twice state March 2011 — a 16-year discrepancy that materially affects the presented track record.

“Ignite, which is a licensed mortgage broker, commenced operations in 1995 and as of December 31, 2023, has originated approximately 1,323 real estate loans ... [financial statement note:] The Company was organized in Nevada on October 29, 2020, and acquires real estate loans originated by Ignite Funding, LLC (Ignite), an affiliate of the Company. Ignite, which commenced operations in March 2011, is a licensed mortgage broker.”
PPM p.795% confidence

Unfilled placeholder text — $ _________

High

Multiple unfilled dollar amounts in the Liquidity section — aggregate Notes outstanding and total assets not populated.

“As of June 30, 2024, the Company had an aggregate principal amount of $ _________ of Notes outstanding We intend to satisfy our liquidity needs through cash from operations and additional capital contributions from the members of the Company In the future, the Company may also enter into long-term secured and unsecured credit facilities or issue additional debt or equity securities. As of June 30, 2024, the Company's total operating assets consisted of $_________ in cash and $1_________ of loans receivable”
PPM p.4399% confidence

Unfilled placeholder text — August __, 2024

High

Offering Circular date left blank on cover page — document was not finalized before distribution.

“The date of this Offering Circular is August __, 2024”
PPM p.399% confidence

Unfilled placeholder text — August __, 2025

High

Offering termination date blank in multiple places — investors cannot determine when the offering closes.

“the date on which $61,330,472 in aggregate principal amount of the Notes, the Maximum Offering Amount, has been purchased, (2) August __, 2025, which date may be extended in our sole discretion”
PPM p.199% confidence

Numeric inconsistency — $198,086,900,00 — malformed number in loan table

Low

Acquisition Loans for 2022 in the historical loan table shows '$198,086,900,00' — an extra comma makes the figure ambiguous or erroneous.

“Acquisition Loans (1) $ 207,390,900 $ 198,086,900,00 $ 127,112,800.00”
PPM p.3595% confidence

Numeric inconsistency — Allowance for credit losses 2021 ending balance: $445 provision vs. $455 balance

Low

The allowance for credit losses table shows a beginning balance of $0 and provision of $445 for 2021, but the ending balance is listed as $455 — the arithmetic does not sum ($0 + $445 = $445, not $455).

“Balance at beginning of year $ 445 $ — Provision for credit losses 15,001 445 Balance at end of year $ 15,446 $ 455”
PPM p.6390% confidence

Spelling / typo — Chief Executive Office

Low

Signature page title reads 'Chief Executive Office' instead of 'Chief Executive Officer' — missing final letter in a legal signature block.

“Title: Chief Executive Office”
PPM p.6598% confidence

Spelling / typo — We have has entered

Low

Double verb 'have has' — broken sentence grammar in substantive business description.

“We have has entered into a Servicing Agreement with Ignite, under which Ignite will service the real estate loans funded or otherwise acquired in whole or in part by the Company”
PPM p.799% confidence

Spelling / typo — we have has provided

Low

Repeated double-verb error 'have has' in second substantive sentence — indicates copy-paste without review.

“provided that our approval is required for all waivers or modifications to the terms of the real estate loans for which we have has provided at least 51% of the funding”
PPM p.799% confidence

Spelling / typo — Connect Invest are only funding

Info

Subject-verb disagreement: 'Connect Invest are' should be 'Connect Invest is' — grammatical error in body text.

“Initially, Connect Invest are only funding loans originated by Ignite.”
PPM p.2897% confidence

Spelling / typo — earlies maturity date

Info

'earlies' is not a word — should be 'earliest' in the redemption plan description.

“those Notes with the earlies maturity date will be redeemed first”
PPM p.4099% confidence

Spelling / typo — oFFERING CIRCULAR SUMMARY

Info

Section header has lowercase 'o' followed by all-caps 'FFERING' — apparent copy-paste capitalization error in a section title.

“oFFERING CIRCULAR SUMMARY”
PPM p.698% confidence

Spelling / typo — PROIVDED

Info

Obvious spelling error 'PROIVDED' instead of 'PROVIDED' in a financial statement heading.

“NET CASH PROIVDED BY FINANCING ACTIVITIES”
PPM p.6199% confidence

Diligence gaps

Questions a standard diligence questionnaire would ask that the PPM leaves unanswered.

DDQ gap: Does the fund engage an independent auditor?

High

The offering documents don't answer a standard institutional DDQ question (Governance). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: Does the fund have a GP clawback provision?

High

The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: What is the LP/GP carried-interest split above the preferred return?

High

The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: What is the preferred return (hurdle) rate offered to LPs?

High

The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: Does the fund use a third-party fund administrator?

Medium

The offering documents don't answer a standard institutional DDQ question (Governance). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: Is there a GP catch-up, and at what rate?

Medium

The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: What distribution-waterfall structure does the fund use?

Medium

The offering documents don't answer a standard institutional DDQ question (Structure). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: What is the GP's capital commitment (skin in the game)?

Medium

The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ readiness

How much of a standard institutional due-diligence questionnaire this fund's offering documents answer out of the box. Gaps are questions an allocator will ask directly.

38%
Coverage
5 answered0 partial8 gaps13 questions
Economics
  • What is the preferred return (hurdle) rate offered to LPs?Gap
  • What is the LP/GP carried-interest split above the preferred return?Gap
  • Is there a GP catch-up, and at what rate?Gap
  • Does the fund have a GP clawback provision?Gap
  • What is the GP's capital commitment (skin in the game)?Gap
Structure
  • What distribution-waterfall structure does the fund use?Gap
  • What is the fund's investment strategy / asset class?Debt · UnknownAnswered
  • What is the fund's vintage year?Vintage 2015.Answered
  • What is the target offering size?Target offering of $61,330,472.Answered
  • What is the minimum LP investment?Minimum investment of $500.Answered
Fees & Expenses
  • Is the fund's fee schedule disclosed (management fee, etc.)?3 fee line item(s) extracted from the offering documents.Answered
Governance
  • Does the fund engage an independent auditor?Gap
  • Does the fund use a third-party fund administrator?Gap
Generate IC memo →

Fee scheduletaken before LP distributions

Total load 1.00%
Fee
Trigger
Basis
Rate
Asset Management Fee
Monthly, payable in arrears by the 10th calendar day of the subsequent calendar month
1/12 of 1% per month (approximately 1% per annum) of the aggregate principal amount of Notes outstanding at the end of each calendar month
1.00%
Loan Servicing Fee
Ongoing, per loan originated
0.50% of the original principal amount of each borrower's real estate loan; paid by borrower, not by the Company or note investors
0.00%
Early Redemption Fee
Upon noteholder-requested early redemption under the redemption plan
Greater of (1) 0.5% of outstanding principal amount multiplied by number of calendar quarters remaining until maturity, or (2) $25.00 per Note; charged only on early redemptions requested by noteholders
0.00%

Service providers3 gaps

Provider network →
Legal Counsel
Gap
Not disclosed
No independent counsel named for investors. Common in small syndications where Manager and Fund share counsel — reduces independence. Verify during diligence.
Auditor
Gap
Not disclosed
Audit intent not stated in PPM. Ask the sponsor: will the fund be audited, by whom, and on what frequency?
Fund Administrator
Gap
Not disclosed
No third-party fund administrator referenced. Manager likely handles admin internally — common for <$10M raises but reduces independence.
Placement Agent
OK
No placement agent engaged
No placement agent engaged. Direct placement by Manager — no placement fees eat your invested capital.

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