Secured Investment High Yield Fund II, LLC

701 E Front Ave, Second Floor Coeur d Alene United States, ID 83814 Reg D

Investment Objectives: The Secured Investment High Yield Fund II, LLC (“Fund”) strategy is to create attractive risk-adjusted returns by funding a diverse pool of short- term, high-yield, real estate loans. The Fund offers the benefits of trust deed investing without the barriers to entry inherent with trust deed investing, including real estate experience and time commitment. The Fund intends to invest in first trust deeds secured by non-owner occupied residential properties with one to four (1-4) units (“Target Assets”).

Size of Offering: The Fund is offering $10,000,000 of membership interests (“Interests”). However, the Manager may increase or decrease the size of the offering. The minimum size of the fund shall be $500,000. Purchasers of Interests will be collectively referred to herein as “Members.”

Minimum Commitment: The minimum subscription by a Member will be $50,000, subject to change at the discretion of the Manager, which also has discretion to reject a subscription for any reason.

Drawdowns: Commitments may be drawn down as necessary to invest in Target Assets and meet expenses related to the fund’s Target Assets. A minimum notice of ten (10) calendar days’ written notice (“Funding Notice”) will be given by the Manager. Each Funding Notice will specify the funding date and provide appropriate payment instructions.

Why Secured Investment Corp as Manager?

Through long years of trial and error, The Lee Arnold System of Real Estate Investing was created to teach clients how to translate workbook education and real estate theory into real world real estate investment success. Lee Arnold created Cogo Capital® so real estate investors could have access to unlimited funds for their non-owner occupied investments. Since then, we have been involved in over 1 billion-dollars worth of real estate deals with clients. SIC was created to safely lend on first trust real estate liens and earn higher returns than investors were currently seeing in their stock market, bank CDs, or bond investments. As we combined training, funding, and the education to lend on real property, we began to notice a progressing trend of growth and success with the clients involved. Through this model we call “The Circle of Wealth,” we noticed that people who entered at the training level and borrowed funds for their real estate investments eventually became lenders in their own right. They then helped others obtain the capital needed to grow their real estate portfolios. This allowed everyone on every side to succeed. It is our goal that everyone will enjoy some level of success in The Circle of Wealth, and inevitably lap it several times over. Join the Circle of Wealth today!

DISCLOSURES

This presentation for Secured Investment High Yield Fund II, LLC and any appendices or exhibits (the “Presentation”) have been prepared by Secured Investment Corp for information purposes only. This Presentation is confidential and for its intended audience only. Recipients of this Presentation may not reproduce, redistribute or pass on, in whole or in part, in writing or orally or in any other way or form, this Presentation or any of the information set out herein. This Presentation does not constitute an offer to sell or a solicitation of an offer to purchase limited partnership interests in any security. Any prospective investor is advised to carefully review all of the private placement memorandum, operating agreement and subscription documents (“Investor Documents”) and to consult their legal, financial and tax advisors prior to considering any investment in Secured Investment High Yield Fund II, LLC. The materials contained in this Presentation contain a summary and overview of Secured Investment High Yield Fund II, LLC as currently contemplated by Secured Investment Corp in order to obtain initial feedback from potential investors. Secured Investment Corp may change some terms prior to finalization of the Investor Documents. This Presentation does not purport to be complete and is superseded in its entirety by the information contained in the Investor Documents. Past performance is not indicative of future returns or results. Individual investment performance, examples provided and/or case studies are not indicative of overall returns of Secured Investment High Yield Fund II, LLC. In addition, there can be no guarantee of deal flow in the future. Some of the statements in this Presentation, including those using words such as “targets,” “believes,” “expects,’’ “intends,’’ “estimates,’’ “projects,’’ “predicts,’’ “anticipates,’’ “plans,’’ “pro forma,’’ and “seeks” and other comparable or similar terms are forward-looking statements. Forward looking statements are not statements of historical fact and reflect Secured Investment Corp’s views and assumptions as of the date of the Presentation regarding future events and performance. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are important factors that could cause Secured Investment High Yield Fund II, LLC’s actual results to differ materially from those indicated in these statements. Secured Investment Corp believes that these factors include, but are not limited to, those described in the “Risk Factors” section of Secured Investment Corp’s confidential private placement memorandum.

AN INVESTMENT IN SECURED INVESTMENT HIGH YIELD FUND II, LLC INVOLVES RISK, AND NUMEROUS FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF SECURED INVESTMENT HIGH YIELD FUND II, LLC TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION. ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THIS PRESENTATION, SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALIZE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT.

TARGETED OPPORTUNITIES

Residential and Commercial Loans

• Loans that require quick closing and that banks cannot fund

• Borrowers will include real estate investors who seek to purchase and renovate investment properties for the purpose of selling such properties

• Some borrowers may include real estate investors who are part of The Lee Arnold System of Real Estate Investing

 

Asset Class

• Loans will be secured by non-owner occupied single family residential properties, multi-family properties, and commercial properties

• The Company may also consider funding construction loans and loans secured by unimproved entitled land

 

Direct acquisition of non-owner occupied residential real estate

• The Company will seek to acquire non-owner occupied real estate on an opportunistic basis. Such properties may be remodeled and subsequently leased and/or sold, thus providing an additional source of income to the Company.

 

Acquisition of distressed real estate for the purpose of rehabilitating, improving and subsequently renting and/or selling such properties for profits

• The Company will purchase properties that can be rehabilitated and resold for profit. The Company intends to purchase properties and distressed properties at a discount to current (or projected) fair market value and subsequently seek to sell these properties for profit.

 

Other Opportunities

• The Company may also co-invest in loans with third party and/or affiliated lenders by providing funds for or purchasing a fractional undivided interest in a loan.

 

STRUCTURE

As compensation for the management of the Fund, the Manager shall be entitled to receive an annual asset management fee equal to 1.75% of the Fund’s Asset Base payable quarterly (“Management Fee”). The Management Fee shall be payable on the first day of a calendar quarter based upon the Company’s Asset Base as of the last day of the preceding calendar quarter. The Management Fee shall be first payable on the first day of the calendar quarter following the first deployment of the Fund’s capital. “Asset Base” shall equal: (i) cash and the fair market value of permitted temporary investments; (ii) the principal loan amount associated with a Target Asset; and (iii) the amount of reserves maintained by the Fund.

• Net Available Proceeds From Operations shall be distributed as follows:

• First, to all Members pro-rata according to each Member’s positive unrecovered capital commitment until each Member has received distributions equal to a 9% cumulative annual return on each Member’s positive unrecovered capital commitment;

• Second, 50% to the Members on a pro-rata basis and 50% to the Manager.

“Net Available Proceeds From Operations” shall mean the gross cash proceeds from Company operations (other than proceeds from capital transactions, discussed below), less the portion thereof used to pay or establish reserves for all Company expenditures (including the Management Fee) and contingencies, and less any non-cash proceeds that may not, for any reason, yet be distributable, all as determined by the Manger. Net Available Proceeds From Operations includes monthly interest payments received by the Company on any Target Asset funded by the Company, the Company’s portion of Origination Points, and payments from the borrower to the Company that are attributable to default interest and/or late payments.

Net Capital Transaction Proceeds will be distributed as follows:

• First, to all Members pro-rata according to each Member’s positive unrecovered capital commitment until each Member has received distributions equal to a 9% cumulative annual return on each Member’s positive unrecovered capital commitment;

• Second, to all Members pro-rata according to each Member’s positive unrecovered capital commitment until each Member’s positive unrecovered capital commitment has been reduced to zero;

• Third, 50% to the Members on a pro-rata basis and 50% to the Manager.

“Net Capital Transaction Proceeds” means the net cash proceeds resulting from the refinance, sale, disposition, exchange or other transfer of all or any portion of a Target Asset held by the Fund, less any portion thereof used to establish reserve for all Fund expenditures and contingencies, and less any portion thereof to be used for reinvestment Net Capital Transaction Proceeds includes funds received by the Fund from (i) the sale of Target Assets funded by the Fund; (ii) a borrower for a pay-off of a Target Asset funded by the Fund; and (iii) an insurance company due to a loss of a property securing a specific trust deed.

Meet Our Team

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CEO

Lee Arnold

Lee Arnold is an international speaker, trainer, author and licensed broker who has spent many years perfecting the real estate and private money mortgage lending process through thousands of transactions. Lee is a leading expert on private money mortgages and has been featured as an investment strategy expert by Forbes, the Boston Globe, Market Watch, Reuters and Business Week. He has also consulted and taught for a number of national financial literacy companies.

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CFO

Jaclyn Olsen

Jaclyn started with the Company in 2007 as a tax and financial accounting consultant. It was immediately clear that by bringing her in permanently, she would be instrumental to the real estate investment and private mortgage firms’ progress and productivity. Since then, Jaclyn has been serving as Chief Financial Officer (CFO). As a strategic member of the executive leadership team, from 2010 to 2018, she helped the company experience the exponential growth.

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COO

John Kane

With 30 years experience in leading real estate education companies, starting financial services and software companies, John lends his hand to the technology, marketing, operational and educational aspects of Secured Investment Corp. Kane formerly led a publicly traded company — Whitney Information Network, now Legacy Education — to create Rich Dad Education with Robert Kiyosaki, and under his leadership grew revenues to over $250,000,000.

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Director of Funding

Heather Dreves

Heather Dreves is the Director of Funding. She is a tenured employee that has worked in the Private Money Industry for over 15 years and previously held her series 63 license. Heather has been directly involved in the sale of over 75 million dollars in Trust Deed Mortgages and raised over 10 million in Secured Investment Corps High Yield Equity Funds. She has had experience in assisting underwriting, managing the Cogo and Servicing team in addition to Investor Relations.

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VP of Marketing

Cherie Constance

After graduating Magna Cum Laude from Southern Utah University, Cherie Constance has been writing and marketing for businesses and medical companies nonstop. As the VP of Marketing for Lee Arnold and Secured Investment Corp. since 2006, she has enhanced the scope and reach of each company.

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Investor Relations

Erik Bergman

Erik works in investor relations for the firm’s private equity platform. Erik has a finance background, specifically in private wealth management, as well as alternative investments in the private equity space. He started his career at Morgan Stanley in 2002, then moved on to a boutique private wealth management firm in Newport Beach, CA where he advised high net worth clients on advanced asset management and estate planning strategies. Erik was a licensed real estate broker in Lake Tahoe.