Excellent Credit And Good Credit Partnerships

Fractional Real Estate Ownership Terms and Conditions 

Herein are the rules and guidelines regarding the Personal Guarantor collectively referred to as the Fractional Real Estate Owner (Personal Guarantor) governed by Credit Investor USA, collectively referred to as FRACTIONAL REAL ESTATE OWNERSHIP FUND (FREOF):

All information obtained from the Personal Guarantor is considered Confidential Information. Confidential Information shall remain the sole property of the Fractional Business Ownership Fund and will not be distributed to any non-active members of the particular fund or any other third party. The FRACTIONAL BUSINESS OWNERSHIP FUND reserves the right to correspond with active participants as needed.

THE FRACTIONAL REAL ESTATE OWNERSHIP FUND

SECTION ONE:

PURPOSE

The Personal Guarantor enters into this relationship with the said Fractional Real Estate Ownership Fund for the purpose of securing business financing. The Personal Guarantor will act in the capacity of a silent partner. The Personal Guarantor does hereby agree to the following;

The funds for which the Personal Guarantor acts as the guarantee are part of an aggregated pool of funds.  After the aggregated funds are secured and are made payable to the FRACTIONAL REAL ESTATE OWNERSHIP FUND; the business, property or investment is purchased. Therefore;

1. Under no circumstances and without exception the Personal Guarantor can not access the funds personally.

The management, employees, and subcontractors of FREOF are employed only by the FREOF. They are subject to and protected by the contents of the Employee Handbook while employed by FREOF.  During the hours of operations the said members are under the protection and guidance of the FREOF. Therefore;

2. At no time is the Personal Guarantor permitted to enter the acquired business, property, or investment and direct the actions of any manager or employee for any reason.

The processes, operations, and materials of the FREOF are protected by copyrights, trademarks, and patent laws.  All management, employees, subcontractors and board members are bonded by non-disclosure agreements and confidentiality agreements. The improper use of any of these materials will result in lawsuit, prosecution and / or fines.  Therefore;

1. The Personal Guarantor shall not divulge the nature of the business practices without written consent. Any disclosure of the business relationship will constitute grounds for fund separation and / or agreement termination. 

2. The Personal Guarantor under no circumstances can claim affiliations with the acquired business, property, or investments.

3. The Personal Guarantor under no circumstances can use the acquired business, property, or investments on any type of documentation without written consent from an official member of the fund.

The FREOF  reserves the right to cancel any relationship without notice if the Personal Guarantor violates this policy at any time.

THE FRACTIONAL REAL ESTATE OWNERSHIP FUND

SECTION TWO:

TERMS

The relationship between the FREOF / Corporation and the Personal Guarantor shall be perpetual and renewed without cause or notification.

The FREOF will remain responsible for any fees paid out by the acquired business, property, or investment such as but not limited to: management fee, payroll, products, and debt servicing fees. These fees are considered business expenses and will be deducted from the business’ income prior to calculating the profit for the acquired business, property, or investment.

The Personal Guarantor is acting as a fractional participant in a particular business, property, or investment.  A pool of Personal Guarantor s collectively contributes to the funds needed to acquire the business, property, or investment.  Profits are distributed according to the percentage of ownership. Therefore;

1. From the initial line of credit or capital raised, the Personal Guarantor shall receive 6% of face value of that line of credit or capital once it            has been secured and made payable to the FREOF.

2. The Personal Guarantor will receive periodic payments (if applicable) based on the profit of the acquired business, property, or investment less the FREOF management fee of 25% and less the debt service on all lines of credit for the acquired business, property, or investment. The remaining profit will be divided among all the Personal Guarantors who contributed to the aggregated pool of capital used to purchase the acquired business, property, or investment according to their percentage of contribution. (A Personal Guarantor who invests 10% of the cost of the business, property, or investment will receive 10% of the profits after expenses, debt service, and fees.)

The Personal Guarantor shall receive a fraction of the net profits earned by the acquired business, property, or investment on a monthly, quarterly, or annual basis at the sole discretion of the Personal Guarantor beginning six months after the funds are applied. The following example illustrates one possible scenario:    

1. A Personal Guarantor has invested $100,000 along with four other Personal Guarantor s into an aggregated pool of $500,000 for the purposes of acquiring Business X. Business X shows a profit of $200,000. From this $200,000, FBOF deducts a management fee of 20% ($40,000) and one year’s debt service (approx. $50,000), leaving $110,000. The net profit is divided equally among each of the five Personal Guarantor s, yielding $22,000 additional income for each Personal Guarantor .

THE FRACTIONAL REAL ESTATE OWNERSHIP FUND

SECTION THREE:

SECURITY

The Personal Guarantor fully authorizes and understands that the FREOF may need to supply information concerning the credit of the Personal Guarantor in response to multiple applications and inquiries made by different organizations and institutions for the sole purpose of obtaining, establishing, assembling lines of credit. 

However, FREOF is prohibited from engaging and / or communicating any personal or confidential information to any and all unauthorized third party.

THE FRACTIONAL REAL ESTATE OWNERSHIP FUND

SECTION FOUR:

COMMUNICATION / REPORTS / ACCESS

The Personal Guarantor must fully understand that the role of the Personal Guarantor is one of a "Silent Partner".  As a "silent partner", the Personal Guarantor is one who acts as a guarantor and contributes only to secure business financing.

1. The Personal Guarantor will never under any circumstances actively participate in the executive and / or management decisions or operations for the acquired business, property, or investment. 

2. The identity of the Personal Guarantor will never under any circumstances be revealed to any non-member of FREOF.

The Personal Guarantor will have a member of FREOF to actively communicate with for reasons such as:

1. Status of funds being sent or wired

2. Customer service related problems

3. Year-to-date reports on personal compensation

4. Terms and Conditions of relationship with FREOF

The Personal Guarantor will never under any circumstances have access to any registry, bookkeeping and / or accounting records, profit and loss statements, and / or tax records, unless otherwise stated under certain circumstances by an official member of the FREOF.  The Personal Guarantor is also not privy to any management, staff, personnel, and / or employee records.

THE FRACTIONAL REAL ESTATE OWNERSHIP FUND

SECTION FIVE:

INVESTOR PERKS

Unlike the management and employees who are employed by the acquired business, property, or investment and receive a weekly, bi-weekly, or monthly, salaried or hourly wage; the Personal Guarantor is not privy to any business, property, or investment benefits earned by the employees, unless otherwise stated by an official member of FREOF. These benefits include, but are not limited to: 

1.   Health Care Benefits

2.   Paid Vacations

3.   Vacation / Personal Time

4.   Income Raises

5.   Discounted Merchandise or Product

THE FRACTIONAL BUSINESS OWNERSHIP FUND

SECTION SIX:

VIOLATION

Any Personal Guarantor who abuses his relationship with FREOF and / or the business, property, or investment in violation of this policy will be subject to corrective action, including termination of relationship between Personal Guarantor and FREOF, legal action, fines, and criminal liability.

THE FRACTIONAL REAL ESTATE OWNERSHIP FUND

SECTION SEVEN:

FRACTIONAL REAL ESTATE OWNER (PERSONAL GUARANTOR) AGREEMENT ON RULES AND REGULATIONS

I have read, understand, and agree to comply with the foregoing policies, rules, and conditions governing my relationship with the FREOF. I understand that I am acting as a guarantor for business financing only. I am aware that I am a silent partner. I am aware that violations of this guideline will subject me to disciplinary action, including termination of the relationship without notice, legal action, fines and criminal liability. I further understand that opinions, interest, or thoughts about the acquired business, property, and investment are null and void and will have no bearing on the operation of the acquired business, property, or investment. I have no governing decisions when it comes to the daily operations of the acquired business, property, or investment. Furthermore, I understand that this policy can be amended at any time.