Legal Framework

Understanding the legal structure, securities compliance, and risk disclosures for this real estate debt offering.

Legal Structure

Securities Compliance

This investment offering is structured in compliance with federal and state securities laws under Regulation D, Rule 506(b) or 506(c) as a private placement.

  • Private placement exemption under Regulation D
  • Accredited investor verification required
  • Full disclosure via private placement memorandum
  • Professional legal and accounting oversight

Regulatory Compliance

Offering structured in full compliance with federal and state securities laws.

Real Estate Security

First-lien position secured by properly recorded deed of trust and title insurance.

Real Estate Documentation

The investment is secured by a first-lien deed of trust on the property, recorded with Lubbock County, and protected by title insurance.

  • Recorded first-lien deed of trust
  • Lender's title insurance policy
  • Multiple collateral parcels
  • Professional property appraisal

How Money Flows Legally

1

Client Transaction

Your client uses services from CloudStream™ network partners (title, mortgage, insurance, home warranty).

2

Partner Revenue Share

Service providers pay legitimate business partnership fees to CloudStream™ for network participation.

3

Equity Distribution

CloudStream™ distributes profits to equity partners based on ownership percentage and referral activity.

Key Legal Distinctions

✓ What We Do (Legal)

  • • Legitimate business partnerships
  • • Equity ownership in network entity
  • • Revenue sharing from business operations
  • • Transparent fee structures
  • • Compliant securities offerings

✗ What We Don't Do (Illegal)

  • • Direct kickbacks for referrals
  • • Undisclosed fee arrangements
  • • RESPA violations
  • • Unregistered securities offerings
  • • Pyramid or MLM structures

Built-In Compliance Features

Documentation

All agreements properly documented and legally reviewed.

Legal Review

Ongoing legal oversight and compliance monitoring.

Disclosure

Full transparency in all fee arrangements and partnerships.

Risk Management

Proactive compliance and risk assessment protocols.

Plain English Translation

The Bottom Line

CloudStream™ is a legitimate business that creates legal partnerships between real estate agents and service providers. You're not getting paid for referrals—you're getting paid as an equity owner in a business network.

Think of it like owning stock in a company. When the company makes money, shareholders get dividends. When CloudStream™ makes money from legitimate business operations, equity partners get distributions.

Why This Works

Legal Structure

  • • You own equity in the network
  • • Partners pay network participation fees
  • • You receive ownership distributions
  • • All arrangements are disclosed

Compliance Benefits

  • • No RESPA violations
  • • Legitimate business purpose
  • • Transparent fee structures
  • • Professional legal oversight

Your Protection

Every aspect of CloudStream™ has been designed with legal compliance in mind. You're protected by:

  • Comprehensive legal documentation
  • Ongoing compliance monitoring
  • Professional legal counsel
  • Transparent business operations

Risk Disclosures

Important: All Investments Involve Risk

This investment involves substantial risk and is suitable only for investors who can afford to lose their entire investment. Please read all risk factors carefully before investing.

Illiquidity Risk

There is no public market for these securities. Investors must be prepared to hold their investment for the entire 36-month term and may not be able to liquidate if needed.

Default Risk

The borrower (NhaLon LLC) may default on interest payments or fail to repay principal at maturity. In such cases, the investment group has access to an experienced local disposition team to handle foreclosure proceedings and a local management team with deep real estate knowledge to take over property operations if needed to protect investor capital.

Property Value Risk

Property values may decline due to market conditions, reducing collateral coverage and potential recovery in a foreclosure scenario.

Market and Economic Risk

Local and national economic conditions, interest rate changes, and real estate market fluctuations could negatively impact property performance and borrower ability to repay.

No Guarantee of Returns

Past performance is not indicative of future results. There is no guarantee of returns, and investors may lose some or all of their investment.

Investor Suitability

This investment is suitable only for investors who:

Meet the definition of an "accredited investor" under federal securities laws

Have sufficient knowledge and experience in financial and business matters to evaluate the risks

Can afford to lose their entire investment without affecting their financial security

Are prepared to hold the investment for the entire 36-month term

Have consulted with their legal, tax, and financial advisors before investing

Questions About Legal Structure?

Request the full private placement memorandum with complete legal disclosures and documentation.