FREQUENTLY
ASKED QUESTIONS

faq for capital

LuxeStreet Inc is a specialty finance firm that provides liquidity services to dealers of luxury assets. We offer to purchase dealer luxury assets at a discount to their appraised value through a repurchase agreement contract. Under the repurchase contract, dealers pay a monthly custodian fee in exchange for the option to repurchase the asset during the term of the agreement.

Asset-Based lending is a form of lending in which the principal is secured by tangible or intangible collateral assets. The lender, by way of lien, utilizes the borrower’s asset as collateral to provide funding in exchange for interest payment. The principal of the loan is limited to the value collateral base, which is measured by the liquidation value of the collateral asset.

A repurchase agreement is a financial transaction in which the financier purchases the collateralized asset, taking legal ownership, instead of lending against it. The financier offers the “borrower” the option to repurchase the asset during the agreement period and in turn, receives a monthly fee from the “borrower”.

The primary difference between traditional asset-backed lending and our repurchase agreement structure is that during the repurchase agreement, the financier takes legal ownership of the asset whereas with more traditional loan products, the financier places a lien against the collateralized asset. The difference becomes very clear in the event of default and insolvency by the borrower: in the case of ABL the financier must overcome costly, lengthy legal process of foreclosure or seek a lift from bankruptcy to recover the asset. With the Repurchase Agreement, the financier incurs none of these costs as the collateral is already held within possession and may be sold immediately to recover principal.

The asset is first appraised or valued at our office under strict safety and security measures. We have a vault in our office where the asset is temporarily stored until it is handled over to Malca Amit – our third-party bonded storage facility once the repurchase agreement is signed.

We purchase luxury timepieces from commercial watch dealers (currently we support only 4 Major brands – Patek Philippe/ Audemars Piguet/ Richard Mille and Rolex). 

We work exclusively with commercial dealers in luxury assets industry. We do not conduct business with individuals nor do we offer personal finance products. 

We structure our repurchase agreements to purchase luxury assets at roughly 65% of their appraised market value. In the event of default, we will terminate the repurchase agreement and dispose the asset on the open market, an asset that we purchased at a significant discount. We have a strong network of dealers that help inform our appraisal process and believe we will be able to dispose default assets quickly and profitably. Since our inception in June 2018, we have not had a single customer default.  

Once the dealer decides to close the repurchase agreement or finds a buyer for his/ her asset safely stored with us, they inform us and provide us with the amount as per the repurchase agreement. After receiving the funds (and collecting all outstanding custodian or option fees), the asset is recalled from Malca Amit and is either delivered directly to the dealer or is brought back to our office so that the dealer can come and collect the same.

LuxeStreet treats your assets as its own & believes that the assets safety is of paramount concern and therefore LuxeStreet only works with the world’s top vault companies which is bonded and insured. 

LuxeStreet follows a very prudent and well-structured underwriting process. After using the best accredited authenticators to value the product, LuxeStreet additionally uses the internet and its large dealers’ network from the marketplace to understand the fair value of the asset.

Our rates are 18% per annum i.e. 1.5% per month. Our rates are the lowest when compared to our competitors where the rates range from 3%-10% per month. With the traditional banks closing their doors to such asset backed lending, obtaining a loan from LuxeStreet is the obvious choice. Additionally, our contracts don’t impose personal guarantee or a must buyback policy.

LuxeStreet has made it quite simple for a commercial dealer to approach us for a repurchase contract. We accept online applications, telephone, email as well as walk-ins. 

LuxeStreet does not do a credit check, however we do run a background check of the commercial dealer to ensure we adhere to the AML compliance.  

LuxeStreet currently only charges 1.5% per month (18% per annum) and have no other costs or charges.  

LuxeStreet handles all shipping costs after the asset has reached our facility. We additionally ensure that we deliver the asset after the end of the repurchase contract, free of cost either to your office or directly to your desired customer.

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faq for INVESTMENT

We make money through the monthly custodian fees paid to us by our customers. Our monthly custodian fees range between 1.5% and 2.0% monthly (18.0 – 24.0% annually).

We purchase luxury timepieces from commercial watch dealers.

We work exclusively with commercial dealers in luxury assets. We do not conduct business with individuals nor do we offer personal finance products.

We structure our repurchase agreements to purchase luxury assets at roughly 65% of their appraised market value. In the event of default, we will terminate the repurchase agreement and dispose the asset on the open market, an asset that we purchased at a significant discount. We have a strong network of dealers that help inform our appraisal process and believe we will be able to dispose default assets quickly and profitably. Since our inception in June 2018, we have not had a single customer default.

More information can be found in our Private Purchasing Memorandum here. 

The term of each note offered is 3 years in length. This means that after investing, you will begin receiving 12% annual interest payments, made monthly, on the principal of your investment. At the end of the 3-year term of the Notes, your principal will be repaid to you in full. We do not expect there to be a market for our Notes thus we do not anticipate any immediate way to sell or otherwise transfer ownership of these notes.
Noteholders will have the right to redeem their Notes, in whole or in part, together with any interest due but not paid, on a one-time basis only, beginning on the one year anniversary of the date of purchase and upon 90 days written Notice to the Company.

Yes, you can invest in LuxeStreet Offerings with a self-directed IRA. We have currently partnered with 2 Self-directed IRA custodians Equity Trust and IRA Club. Some types of transactions may be prohibited. Before you begin the investment process, please consult with your self-directed IRA custodian or any of the below listed self-directed IRA custodians. You will create an “ENTITY” profile from your user account, and you will need the name of the entity and the Tax ID number from your IRA account to do so. Please contact Martin Campbell (m.campbell@trustetc.com) from Equity Trust and Ramez Fakhoury (Ramez@iraclub.org) from IRA Club to open accounts accordingly.

After your contribution has been approved and debited from your account, the funding will be applied to LuxeStreet Inc. We do not expect there to be a market for our Notes thus we do not anticipate any immediate way to sell or otherwise transfer ownership of these notes.

Yes, for this type of Note offering, you must be an accredited investor. Please review the PPM for other requirements prior to investing.

We process our investments through ACH payments. When investing in our Notes, you will be asked for your bank account information which will be securely stored within our database.

We will process interest payments utilizing ACH payments to your account. Your note principal, repaid at the end of the term, will also be sent to your account via ACH.

On our page please select the ‘INVEST NOW’ button to be taken over to our investor portal.

Registering on our Investor Portal website and is free. There are not additional fees subtracted from your investment amount.

Yes, if you decide to cancel before the investment period has closed. However, if you have decided after the investment period has closed or funds have been transferred, you may not be able to cancel or update your investment. Please send us a message using the contact form if you have any questions.

Yes, the minimum investment is 1 note, at LuxeStreet’s discretion. Notes are sold in $10,000 increments.

There is no guarantee with these Notes in the performance or risk associated with these. Our operating policies institute many measures to mitigate the risk of our business and therefore the performance of these notes. This offering is highly speculative and involves a high degree of risk. These notes are unsecured, limited by obligations of LuxeStreet and have not been approved or insured by any government agency. Investing in our Notes should only be considered by persons who can afford the loss of their entire investment. Please carefully review the risk factors detailed in the section entitled “RISK FACTORS” in our Offering Memorandum. Please review our Offering Memorandum in its entirety for a more detailed discussion of the risks associated with this investment. 

Any data or analytical materials are provided by LuxeStreet for informational purposes only. Business performance may differ significantly from historical performance or market data. Estimates and projections are based upon data provided by recipient and/or other sources that we deem to be reliable but we do not guarantee that such sources are complete, accurate, or free of errors or omissions. Any conclusions or estimates presented in the Offering Memorandum may become inaccurate over time. Unless expressly agreed to in writing, LuxeStreet has no obligation to update any of the statements or analysis presented. These materials are provided pursuant to any definitive agreement you may have with LuxeStreet or its affiliates. Subject to such agreement, if any, these materials are provided “as is” and without guarantees, assurances, or warranties of any kind, express or implied. LuxeStreet does not provide and these materials do not constitute legal advice, tax advice, or accounting advice.

The purchase of Notes and similar transactions give rise to risk and may not be suitable for all investors. No assurance can be made regarding the future operating performance of our company, nor can any assurances be mate that Notes purchased will perform in line with historical investments, or that specific investment categories will be available or suitable for purchase by particular investors

Investors in our Notes should be financially sophisticated and prepared for significant losses. Investors may or may not be able to invest in Notes that meet their desired characteristics. Loans are also subject to certain legal and regulatory risks that may render them unenforceable. Any information described in the Offering Memorandum should not be used exclusively and must be interpreted by an experienced and sophisticated investor in order to effectively inform any investment decision. These materials are not an offer to sell, nor a solicitation of an offer to buy, any securities.

LuxeStreet does not provide legal advice, tax advice, or accounting advice. Before making any investment or executing any transaction, you should consult with your legal, tax, and accounting advisors with respect to the suitability, value, and risk of such investment or transaction.

These materials are proprietary and confidential and may not be copied, distributed, or shared with any third party without the prior written consent of LuxeStreet. 

At the maturity date of the Notes, two (2) calendar years after the closing date, the principal will be repaid to investors via ACH.

Yes, these promissory notes will be represented as long term liabilities on LuxeStreet’s balance sheet until the principal and accrued interest is paid in full.

Yes. We rely upon Rule 506(c) of Regulation D to issue Notes.

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