Download American Homeowner Preservation Dear

American Homeowner Preservation
[email protected]
Dear Investor Relations:
My client, ____________________, (hereafter referred to as “Client”) has asked us to
provide American Homeowner Preservation LLC with verification of his/her status as an
accredited investor to assist you with eligibility requirements as defined in Rule 501(a)
promulgated by the United States Securities and Exchange Commission under the Securities Act
of 1933.
In connection with this letter, we are either sufficiently familiar with the affairs of the
Client, or have examined one or more of the following documents:
1. Joint tax returns for the years ______ and ______ (each, a “Tax Year”) filed by Client
and [his/her] spouse on Form 1040 (hereafter referred to as the “Tax Returns”),
accompanied by a statement of the Client that the copies of the Tax Returns provided
were true, correct and complete, filed with the appropriate office of the Internal Revenue
Service, prepared in full compliance with applicable law and governmental regulations
and have not been amended; and/or
2. Bank, securities and/or similar account statements to demonstrate net worth of
$1,000,000.
Based on the foregoing, we hereby advise you that Client is an “accredited investor” as
that term is defined in Rule 501(a) under the Securities Act because:
[CHECK ONE]
1. At the time of this subscription, the Client is a natural person and has an individual
net worth, or spousal joint net worth with in excess of $1,000,000 (“net worth”)
means the excess of total assets at fair market value over total liabilities; where:
a) Your residence shall not be included as an asset;
b) Indebtedness that is secured by your primary residence, up to the estimated
fair market value of the primary residence shall not be included as a liability
(except that if the amount of such indebtedness outstanding exceeds the
amount outstanding 60 days before the date hereof, other than as a result of
the acquisition of the primary residence, the amount of such excess shall be
included as a liability); and
c) Indebtedness that is secured by your primary residence in excess of the
estimated fair market value of the primary residence shall be included as a
liability); or
American Homeowner Preservation LLC 819 South Wabash Street, Suite 606 Chicago, IL 60605
2. Subscriber had income in excess of $200,000 in each of the two previous years, or
joint spousal income in excess of $300,000 in each of those years.
3. Subscriber is a bank, insurance company, registered investment company, business
development company, small business investment company, any organization
described in section 501(c)(3) of the Internal Revenue Code, a corporation, a
Massachusetts or similar business trust, or a partnership, not formed for the specific
purpose of acquiring the Securities, with total assets in excess of $5,000,000; or
4. Subscriber is a trust, with total assets in excess of $5,000,000, not formed for the
specific purpose of acquiring the Securities, and this purchase is directed by a
sophisticated person as described in rule 506(b)(2)(ii) of Regulation D promulgated
under the Securities Act; or
5. Subscriber is an entity in which all of the equity owners are accredited investors as
defined by section (1), (2) or (3) above. We have not conducted any other
investigation or inquiries of the Client, and have not determined whether the Tax
Returns or other source documents were accurately prepared, were properly filed or
otherwise.
By rendering this letter, we do not intend to waive any client privilege. This letter is
limited to the matters set forth herein and speaks only as of the date hereof. Nothing may be
inferred or implied beyond the matters expressly contained herein. This letter may be relied upon
by you and only in connection with an offering under Rule 506(c). This letter may not be used,
quoted from, referred to or relied upon by you or by any other person for any other purpose, nor
may copies be delivered to any other person, without in each instance our express prior written
consent. We assume no obligation to update this letter.
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Phone
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American Homeowner Preservation LLC 819 South Wabash Street, Suite 606 Chicago, IL 60605