Private Lending Disclosure Statement
Effective Date: October 12, 2025
Important Notice: This disclosure provides essential information regarding the nature, risks, and procedures involved in private lending transactions facilitated by Aubart & Associates. Please read carefully before participating in any lending or investment activity.
1. Nature of Private Lending
Aubart & Associates operates as a private lending facilitator, connecting Private Money Lenders (PMLs) with qualified real estate developers (“Borrowers”) seeking funding for acquisition, construction, or development projects.
PMLs provide funds through secured promissory notes or deeds of trust. Each loan is underwritten and collateralized by real estate. The developer is the investor/borrower who uses the funds for project development and is obligated to repay principal and interest under the terms of the note.
2. Role of Aubart & Associates
Aubart & Associates acts solely as a private lending facilitator — not a broker-dealer, investment adviser, or fund manager. Funds are deployed directly from lender to borrower, not pooled, securitized, or managed as collective investment vehicles.
3. Risk Acknowledgment
Private lending carries inherent risks, including but not limited to:
- Borrower default or delayed payments
- Decline in collateral or real estate value
- Property damage or unforeseen maintenance costs
- Construction or development delays
- Market, economic, or interest rate fluctuations
Although each loan is secured by a recorded Deed of Trust, repayment is not guaranteed. Lenders should only participate if they can bear the risk of potential loss.
4. Due Diligence
Lenders are strongly encouraged to conduct independent due diligence prior to funding any loan, including:
- Reviewing all loan and title documents
- Confirming property insurance coverage and valuation
- Evaluating borrower experience and creditworthiness
- Consulting with qualified legal and financial advisors
Aubart & Associates assists with documentation and coordination but does not provide legal, tax, or financial advice.
5. Returns and Payments
Each private loan agreement specifies a fixed interest rate, loan term, and repayment schedule. Returns are determined by the borrower’s performance under the loan terms and are not based on market speculation. All payments are made according to the terms outlined in the executed promissory note or deed of trust.
6. Compliance & Confidentiality
All private lending activities facilitated by Aubart & Associates are conducted in compliance with applicable Hawaii and federal lending laws. Both lender and borrower information is treated as confidential and used solely for underwriting, servicing, and compliance purposes.
Important Disclaimer
This disclosure is provided for informational purposes only and does not constitute investment advice, a solicitation, or an offer to sell or purchase securities. Private lending involves risk of loss, and lenders should evaluate each opportunity carefully in consultation with qualified professionals before making any financial commitments.
7. Contact Information
For questions or additional details regarding private lending disclosures, please contact:
Email: [email protected]