Milestone Financial, LLC (the “Company”) is a California limited liability company owned and managed by William Stuart.  The Company is in the business of originating or purchasing loans secured by real estate primarily located in California, with emphasis in the San Francisco Bay Area.  In connection with these loans, the Company receives points, interest and other fees. The Company determines the criteria under which it will loan funds to third parties (including the points, interest rate and fees to be charged, as well as the security it will obtain in connection with making such loans), administers these loans, and enforces collection when and if required.

The Company is seeking to borrow funds from outside third parties like you to assist in funding its lending operations.  Our borrowers (you) lend to Milestone in $50,000 increments, and Milestone lends these funds to real estate investors. Generally, your participation shall operate as follows:

No front end load, commission, or start-up costs.

• No management fees.

• A minimum 8.00% yield guaranteed by the Company, plus potential for a share of the net income (profit) from each quarter.

• Profit includes all points (loan fees), late fees, interest and other earned net income from the LLC’s operations.

• Great for self-directed IRA’s and Pensions. Check with your administrator or compliance officer.

• A $50,000.00 minimum contribution is required. Additional funds are allowed in $50,000 increments.

• Your funds are committed for five (5) years, pending early termination by either you or the Company, as provided in the Agreement.

• You will receive interest on any amounts you lend to the Company.  The interest you will receive is divided into two components: Fixed Interest and a variable component called your Profit Allocation, which is based on the profitability of the Company. Payments of Fixed Interest and Profit Allocation from any calendar quarter are paid to you within thirty (30) days after the end of that quarter. The Fixed Interest component is calculated at eight percent (8%) per annum, compounded annually. Your Profit Allocation is computed based on the amount of your Average Loan Balance to the Company during any Quarter, the Average Operating Capital of the Company during that Quarter; the Profit earned by the Company from its loan business during that Quarter and your applicable Profit Share Percentage. 

• Your applicable Profit Share Percentage is twelve percent (12%).  If the Company does not have any Profit or sustains a loss in any calendar Quarter, then no payment of the Profit Allocation will be paid to you.  You will not, however, be responsible for any portion of any loss sustained by the Company.  If the Company has a Profit, then your portion of the Profit Share is based on your Average Loan Balance outstanding during the Quarter in proportion to the Average Operating Capital of the Company during that Quarter multiplied by your Profit Share Percentage.

• You have the right to request an early return of your Loan Amount, and the Company has a right to prepay all or any portion of your Loan Amount, provided that you or the Company gives at least one hundred twenty (120) days notice of the request or prepayment. For any early return initiated by you, a fee of five percent (5%) of the total amount due to you under the Acceleration Notice will be assessed and withheld by the Company.   

The Agreement has not been registered as a security with any federal or state governmental agency regulating securities.  

If you have further questions please call or send an email to me. The actual Agreement is available for your review upon request.