IPO for Sachem Capital
Connecticut-based real estate finance company that specializes in originating, underwriting, funding, servicing and managing a portfolio of short-term (i.e., three years or less) loans secured by first mortgage liens on real property located primarily in Connecticut. Each loan is also personally guaranteed by the principal(s) of the borrower, which guaranty is typically collaterally secured by a pledge of the guarantor’s interest in the borrower. Sachem’s typical borrower is a small real estate investor who will use the proceeds to fund its acquisition, renovation, rehabilitation, development and/or improvement of residential or commercial properties located primarily in Connecticut held for investment or sale. The property may or may not be income producing. Sachem does not lend to owner-occupants. Sachem’s loans are referred to in the real estate finance industry as “hard money loans.”
Sachem believes that upon completion of this offering it will meet all of the requirements to qualify as a real estate investment trust (“REIT”) for federal income tax purposes and intends to elect to be taxed as a REIT beginning with the year in which this offering is consummated.
Sachem’s current expectation is that it will pay quarterly dividends on its common shares at an annualized rate of approximately 8.0% based upon the $5.00 offering price, or approximately $0.40 per share per annum. However, Sachem expects to pay only a pro rata dividend for the period following the consummation of this offering through March 31, 2017.
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