Real Estate / Lending
Confidential Information Memorandum
USDV - Real Estate Fund
BACKGROUND

Entrex was founded in 2001 as an Entrepreneurial Exchange with the mission to be the leading “Capital Market System for Entrepreneurs.”

Entrex focuses on $5-250 million annual revenue, cash-flowing companies via its Patented TIGRcub® Security. The TIGRcub® simplifies investing in companies by providing monthly minimum yield to investors – with the potential of enhanced-yield through revenue participation.

Today, Entrex offers TIGRcubs® to investors in incremental $10,000 certificates. For each TIGRcub® Certificate, investors receive the “higher of a minimum yield or a slice of revenue for a designated period of time.” This allows Investors to benefit from the revenue growth of a company without dealing with the complexities of equity valuations and liquidity challenges. These TIGRcub® Certificates can be bought, sold (traded) and viewed on Entrex’s eChain Portal.

Entrex created a capital market system for investors to find, research, track, manage, and trade the TIGRcub® Securities via the eChain Portalthe transaction and trading ledger for TIGRcub® Securitiesthrough TØ.com’s BlockChain trading technology platform.

Together, the TIGRcub®, the eChain Portal and TØ.com fulfill Entrex’s mission to create a Capital Market System for Entrepreneurs.

All Qualified TIGRcub® Offerings and each TIGRcub® transactional activities are visible on Entrex’s eChain Transaction and Trading Ledger (www.entrex.net).
The USDV Real Estate Fund is offering TIGRcub Investors access a basket of approximately 500 income producing real estate properties. The fund, in existence for five years, offers real estate investors access to competitive rates for purchase, flipping or renovation oriented buyers.

Real Estate buyers bring a minimum of 30% equity based on the lower of appraisal or purchase price. USDV then offers a maximum of 70% loan to value in a first lien position while also receiving a personal guarantee from the borrower.

The fund is leveraged today in approximately a 1:1 ratio today utilizing approximately $40 million of Senior Debt with approximately $40 million of owner capital.

Through the addition of the $40,000,000 Junior TIGRcub, subordinated to the Senior Lenders, it is expected the fund leverage to approximately $240,000,000 - or about 3:1 when fully deployed.

Therefore the fund will have approximately $320,000,000 of deployable capital in a first lien position against properties valued at approximately $492,000,000. Assuming default against value this would leave $252,000,000 million in property value to repay the $40,000,000 TIGRcub Investors.

Investors will be receiving a minimum yield with upside through revenue participation as shown in the financials. TIGRcub Investors will be in a second position behind the senior lender but above the equity investors as shown on the Balance Sheet.

USDV has operating performance, through its historical underwriting standards, that exceeds the industry. Today 4 out of the 500 properties are in default with a work-out structure being managed to protect investors. Further information on the geographic and performance matrix can be found in the DealBox and offering documents.
    USDV - Real Estate Fund is offering a TIGRcub® with the following characteristics:

    ° $10,000,000 TIGRcub® Offering
    ° The Higher of $50,010 or 6% Base Interest Rate plus .02% Revenue Participation (2 BPS, both rounded)
    ° Minimum of 6% interest annually
    ° Payments distributed monthly
    ° 49%= Loan to appraised value.
    ° 51%= Equity to appraised value.
    ° TIGRcub Security Loan Seniority: "Junior"
    ° Offering 1,000 Tradeable TIGRcub® Certificates
    ° Tradeable per SEC, Reg D, Exemption
    ° Each Certificate has a face value of $10,000


    The loan facility will be serviced through the TIGRcub Custodial, Servicing and Payment Provider -- interest and principal distributed pari-passu to the investors, in the 1,000 TIGRcub® Certificates.


    Please review the associated DealRoom, for additional information.
    For Illustrative Purposes Only - Finalized TIGRcubs would be based on independent Quality of Earnings analysis of the company.
    TIGRcub Raise:
    $10,000,000
    Minimum Annualized Yield:
    6.00%
    Projected IRR:
    7.81%
    Revenue Participation:
    0.02% (rounded)
    Term:
    5 Years
    Projected "Post-Closing" Balance Sheet
    USDV - Real Estate Fund
    Pre-Transaction Transaction Post-Closing
    Assets
    Current Assets
    Cash:
    1,000,000
    36,000,000
    37,000,000
    A/R:
    0
    0
    0
    Inventory:
    0
    0
    0
    null - Other Current:
    0
    0
    0
    Total Current Assets
    1,000,000
    37,000,000
    Long Term Assets
    Long Term Assets:
    0
    0
    0
    Accured Fees - Intangible Assets:
    0
    4,000,000
    4,000,000
    Total Long Term Assets
    0
    4,000,000
    Total Assets
    1,000,000
    41,000,000
    Liabilities
    Current Liabilities
    A/P:
    0
    0
    0
    Accrued Expenses:
    0
    0
    0
    null - Other Short Term:
    0
    0
    0
    Total Current Liabilities
    0
    0
    Long Term Liabilities
    Long Term Debt:
    40,000,000
    200,000,000
    240,000,000
    TIGRcub:
    0
    40,000,000
    40,000,000
    null - Other Long Term:
    0
    0
    0
    Total Long Term Liabilities
    40,000,000
    280,000,000
    Total Liabilities
    40,000,000
    280,000,000
    EQUITY
    Common Stock:
    40,000,000
    40,000,000
    Retained Earnings & Net Income:
    0
    0
    0
    Total Equity
    40,000,000
    40,000,000
    Equity
    -39,000,000
    -239,000,000
    Total Equity & Liabilities:
    1,000,000
    41,000,000
    * Using "Push-Down Accounting" as Necessary
    Use of Proceeds
    Sources of Funds
    TIGRcub: 40,000,000
    Equity: 0
    B.S. Cash: 0
    Other: 0
    Total Sources 40,000,000
    Uses of Proceeds
    Purchase of Target: 0
    Capital Expenditures: 0
    ReCapitalization: 36,000,000
    Operating Capital: 0
    Fees and Closing Costs: 4,000,000
    Total Uses 40,000,000
    Additional Information
    The proposed transaction is supported by due diligence material, copies of which are maintained by the Company and shall be made available to interested investors by the Company.

    "DealBox" for this Issuer
    Projected Debt Coverage

    50% 50%
    Debt Coverage 50% vs 50% Remaining Income
    Management
    Please provide 50 words about the Management of your Company TIGRcub? See Examples
    This document was prepared based on information provided by the Company and is confidential. This document does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction and may not be relied upon in connection with any offer or sale of securities. This document should be read in conjunction with, and is qualified in its entirety by, information appearing in a prospectus, private placement memorandum or other applicable disclosure document, which should be carefully reviewed prior to investing. Past performance is not necessarily indicative of future performance. With the exception of any historical information contained in this document, the matters described herein contain forward-looking statements that involve risk and uncertainties that individually or mutually impact the matters herein described, including but not limited to financial projections, the effect of economic conditions, and/or other factors outside the control of the Company. Entrex Inc. has not independently verified any of the information contained herein and makes no representation or warranty as to its completeness or accuracy.