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Our personal philosophy for investing in private trust deeds in 2010 is simple:
The best trust deed investments for all but the most well-capitalized investors are short-term notes at conservative 1st lien positions on income-producing residential and commercial properties to borrowers with a defined and viable exit strategy.
These types of opportunities are less common in today's market, but they exist nonetheless, and they're the transactions we're most interested in offering to our prospective investors. Many new trust deed investors are focused solely on the rate of return on capital. Experienced investors know that while yield on capital is important, minimizing the risks associated with loaning money in a rescessionary environment is of paramount concern.
Your investment is represented by a Promissory Note secured by a 1st or 2nd trust deed on the subject collateral. Both the property itself title thereto are properly insured against loss or claim. Property appraisals are by state-certified general appraisers selected by us within the specific or regional market area of the subject collateral. In addition to our intensive due diligence on both the borrower and property in every potential transaction, we encorage all prospective trust deed investors to perform their own due diligence on every opportunity, and that's a sound strategy no matter who you invest with.
We are not a securitized (pooled) mortgage fund, and we do not service notes. We can, however, offer fractionalized participation in some investments and can recommend loan servicing and trustee services when required.
If you have a personal net worth of $500,000 or more (exclusive of your home, autos, and personal belongings) and $100,000 or more capital to invest in California trust deeds, I would be very interested in
discussing a business relationship with you.
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