Connect Invest

2 funds·$111M raised◔ Unclaimed

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Avg Composite

51.7

Mid pack

Active funds

of 2 vintages

Total raised

$111M

disclosed offerings

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Composite score · by vintage

2 scored funds · avg 51.7

Top quartile Middle Lower Sponsor avg

Connect Invest II LLC2015 · 53.3
Connect Invest III LLC2025 · 50.0

Disclosures & prior history12 disclosures · worst high

Material items extracted from the risk-factor, conflicts, and prior-performance sections of Connect Invest's PPMs. Each is quoted verbatim with its source page — surfaced, not editorialized.

Key-person history disclosed — Connect Invest III LLC — no operating history; no loans identified at time of offering

High

The Company was newly formed in November 2024 with no operating history and, as of the date of the Offering Circular, had not identified any real estate loans to fund with the offering proceeds. The entire portfolio is dependent on the Manager selecting suitable loans.

“Connect Invest is a newly-formed Nevada limited liability company that has no operating history. ... As of the date of this Offering Circular, the Company has not identified any real estate loans for funding with the proceeds of this Offering.”

PPM p.699% confidence

Related-party conflict disclosed — Ignite Funding LLC as affiliated originator and servicer

High

Ignite Funding LLC, which originates and services all real estate loans funded by the Company, is an affiliate managed by the same manager (I-Management Group LLC). This creates a structural conflict of interest: the Company has no ability to independently source or service loans, and note investors have no recourse against Ignite or the underlying borrowers.

“Both the Company and Ignite are managed by I-Management Group LLC. The financing needs of the borrowers under the real estate loans are not typically met by traditional mortgage lenders. As a part of its origination process, Ignite (i) verifies and values the real estate collateral that will secure the proposed real estate loan and (ii) obtains borrowers' credit profiles to determine if the real estate and the prospective borrower meet its funding criteria. Ignite also services the real estate loans funded by Connect Invest on an ongoing basis pursuant to the terms of a servicing agreement between Ignite and Connect Invest (the 'Servicing Agreement').”

PPM p.697% confidence

Related-party conflict disclosed — Ignite Funding, LLC — affiliated loan originator and servicer

High

Ignite Funding, LLC, which originates and services all real estate loans funded by the Company, is an affiliate of Connect Invest III LLC. Both entities are ultimately connected through I-Management Group LLC. This creates a material conflict of interest as the Company relies entirely on an affiliated party to source, underwrite, and service its entire loan portfolio, with borrower servicing fees also paid to that affiliate.

“We intend to operate as a real estate lender that funds all or portions of real estate loans initially originated by Ignite Funding, LLC, an affiliate of Connect Invest ('Ignite'). The Company is managed by Connect Invest Corp., while Ignite is managed by I-Management Group LLC, which is an affiliate of the Company. ... Ignite also services the real estate loans funded by Connect Invest on an ongoing basis pursuant to the terms of a servicing agreement between Ignite and Connect Invest (the 'Servicing Agreement').”

PPM p.699% confidence

Adverse prior-fund performance disclosed — Recurring net losses and member's deficit

Medium

The Company reported net losses for all operating periods: $(144,142) for fiscal year 2023 and $(13,176) for 2022. As of December 31, 2023, the Company had a member's deficit of $(61,894). The Company's going concern is dependent on its ability to generate positive cash flow or obtain additional financing.

“Net loss increased by $130,966 to $(144,142) for the year ended December 31, 2023, as compared to $(13,176) for the year ended December 31, 2022 This increase in net loss was attributable to increases in provisions for credit losses, asset management fees and professional expenses resulting from increased sales of Notes and the resulting increased purchase of real estate loans with the proceeds of the Note sales.”

PPM p.4297% confidence

Key-person history disclosed — Company has no employees; fully dependent on the Manager and Ignite

Medium

The Company has no employees and relies entirely on the Manager (I-Management Group LLC) for all operations and on the affiliated Ignite Funding LLC for all loan origination and servicing. Loss of either relationship would materially impair the Company's ability to make payments on the Notes.

“We do not currently have any employees nor do we intend to hire any employees who will be compensated directly by us. Each of our executive officers is an executive officer of the Manager and will receive compensation for his or her services, including services performed for us on behalf of the Manager, from the Manager.”

PPM p.4596% confidence

Material disclosure — Notes are unsecured and subordinate to any future secured debt of the Company

Medium

The Notes are unsecured general recourse obligations of the Company and are effectively junior to any future secured indebtedness the Company may incur. The Company places no limit on its ability to incur senior secured debt. In a bankruptcy, note holders would have only a general unsecured claim.

“The Notes will be subordinate to any future indebtedness of the Company that is not by its terms subordinate to or pari passu with the Notes. There is no limitation on the amount of indebtedness that wen may incur which is senior in right of payment to the Notes. The Notes will be general unsecured obligations of the Company ranking effectively junior in right of payment to any future indebtedness of the Company to the extent of any collateral securing such indebtedness.”

PPM p.1097% confidence

Material disclosure — Notes are unsecured; no minimum offering amount; no escrow

Medium

The Notes are unsecured general recourse obligations of the Company and are not backed by any collateral or guarantees. There is no minimum offering amount and no escrow, so proceeds are immediately available to the Company and investors bear concentration risk if few loans are funded.

“There is no minimum offering amount and no escrow provision for the proceeds of this Offering. Accordingly, the proceeds from the sale of the Notes will be immediately available to the Company upon the acceptance of each investor's subscription.”

PPM p.1097% confidence

Related-party conflict disclosed — Concentrated ownership — Todd B. Parriott controls both Company and Manager

Medium

Connect Invest Corp. holds 100% of the Company's membership interests, and Todd B. Parriott is the beneficial owner of Connect Invest Corp. Parriott simultaneously serves as CEO of the Company and CEO of the Manager (I-Management Group LLC), creating full concentration of control.

“Todd B. Parriott (1) 1,000 100% ... (1) Consists of 1,000 interests owned by Connect Invest Corp. of which Mr. Parriott may be deemed to be the beneficial owner.”

PPM p.4996% confidence

Related-party conflict disclosed — Connect Invest Corp. — affiliated manager; sole member 100% owned by Todd B. Parriott

Medium

Connect Invest Corp., the external manager of the fund, is 100% owned by Todd B. Parriott, who also serves as CEO and Chairman. The management agreement is on contractual (not fiduciary) terms. The manager's liability is limited and the Company has agreed to indemnify the manager against losses. Note holders have no ability to elect or influence directors.

“The Manager maintains a contractual, as opposed to a fiduciary relationship, with us and our stockholders. Furthermore, we have agreed to limit the liability of the Manager and to indemnify the Manager against certain liabilities.”

PPM p.4597% confidence

Related-party conflict disclosed — Manager's contractual (not fiduciary) relationship with the Company

Medium

The management agreement expressly provides that the Manager maintains a contractual, not fiduciary, relationship with the Company and its investors. The Manager and its affiliates are indemnified against most claims.

“The Manager maintains a contractual, as opposed to a fiduciary relationship, with us and our stockholders. Furthermore, we have agreed to limit the liability of the Manager and to indemnify the Manager against certain liabilities.”

PPM p.4697% confidence

Material disclosure — Two loans in default as of December 31, 2023

Low

As of December 31, 2023, two real estate loans totaling $184,500 were in default (past due, non-accruing interest) due to borrowers' failure to make monthly interest payments. The Company reserved $84,500 in credit losses against these loans.

“Two loans were past due and not accruing interest as of December 31, 2023. The Company elects to write off uncollected accrued interest receivable by reversing interest income in a timely manner and to measure an allowance for credit losses for accrued interest receivable. No interest for the defaulted loans were included in interest receivable or results from operations for the year ended December 31, 2023. The amount of loans in default was $184,500 at December 31, 2023.”

PPM p.5797% confidence

Material disclosure — Spread-based revenue model — borrower loan rates vs. note coupon rates

Info

The Company generates revenue solely from the interest rate spread between rates charged to borrowers on real estate loans (historically ~10%) and the fixed rates paid on the Notes (7.50%/7.75%). Borrowers are expected to pay 500-1000 basis points above conventional lenders. If loan defaults increase or spreads compress, the Company's ability to pay Note interest and principal could be impaired.

“Connect Invest generates revenue through interest earned on the real estate loans it funds in an amount equal to the difference between the interest rate payable on those real estate and interest payable on the Notes.”

PPM p.2697% confidence