U-Haul Investors Club

U-Haul Investors Club was set up by Amerco, the parent of U-Haul and a publicly traded company with a market cap of over $2 billion and assets in excess of $4 billion (yahoo finance: UHAL).

Traditionally the company would finance asset purchases with funds borrowed from lenders (banks) or through debt security issuance (corporate bonds), with a reliance on the banks and financial intermediaries for funding.  As a do-it-yourself organization the company was inspired by social lending and set up a process to borrow direct from individuals via their U-notes which are backed directly by U-Haul company assets.

How it works

• Investors sign up at the U-Haul Investors Club site.
• Invest as little as $100 in any U-note offering with varying maturities, which will be backed by a specific asset such as trucks, equipment, or real estate.
• The company uses the full investment (no underwriting, sales, or broker fees) and pays back interest and principal directly to the lender.
• U-notes are a Full-Recourse Obligation of Amerco
• "AMERCO® (the issuer) is required to repay you the full amount of principal and interest owed. Your recovery is not limited to the value of the collateral securing your U-Note, as would be the case in a limited-recourse or non-recourse scenario. The collateral provides you with a security interest and lien on the specified asset(s) you select with your investment, and the full recourse nature of the U-Note means that AMERCO® is required to repay you in full."

The company's site has a good overview of the process with some videos explaining what the Investors Club is, why it was created, how it works, and answers to some frequently asked questions.  Visitors can also browse the current investment opportunities available to members which are updated one or two times per month.

Check out the presentation on the U-Haul Investors Club site and leave any questions or comments in the comment section below.

U-Haul Investors Club video 01: