First Deed Trusts-Diversify Your Investment Portfolio

Trust Deed Investments

Trust deed investments should be an important part of any investor’s portfolio. Whether a corporation, pension plan or private individual, trust deeds offer a unique combination of superior returns, outstanding security and investor convenience. What do trust deed investments provide for your investment portfolio? Read through our reasoning below:

 

Higher Returns:

All knowledgeable investors are aware of the incredibly low rates being offered by financial institutions on certificates of deposit and money market funds. Even investors with substantial assets can only do marginally better and must diversify or risk losing value to inflation. The constantly changing stock market can be even less appealing.

For the investor who desires higher fixed income returns, investing in First Trust Deeds can deliver interest rates between 8 and 12 percent. These rates are fixed and can be anticipated for the duration of the loan. Payments are made monthly and the investor receives an itemized statement for each of his loans.

 

Security:

As a prudent investor, you should always associate higher returns with higher risk. Investing in First Trust Deeds, as with other investment vehicles, are no different. They do come with the possibility of default. However, this risk is significantly mitigated by two factors. First, each loan is secured by a promissory note payable to you on a single investment property. Secondly, the borrowers are often real estate veterans who typically have high credit scores with a proven track record of success and reliability.

Nevertheless, defaults do occur. In this event you, as lender, may obtain sole possession of the property and either keep it for a rental or sell it. This fact is significant because usually First Trust Deeds are written at significantly discounted loan to value ratio, typically 60 percent or less. Investors should feel comfortable that in the event of default and foreclosure they will receive title to a property potentially with a value greater than the loan amount.

As protection to the lender all procedures undertaken by banks to ensure the security of their loans are also required when Private Trust Deed Investments are executed. Appraisals and title searches are performed. Hazard insurance is a requirement, and all transfers of monies are handled by a licensed and bonded escrow company.

 

Convenience:

An investor may choose to perform and all activities necessary to generate a real estate loan himself. For the uninitiated, this can be a difficult. Private Money Brokers that negotiate and administer their Trust Deed Notes add one more dimension to these investment vehicles, convenience.

They have the knowledge and expertise to oversee and expedite the process and to keep all aspects of the loan in compliance with regulators. They relieve the investor of the paperwork headache. All components of the loan process, from origination to servicing, can be handled or outsourced by the Broker. California Private Money Lenders will continue to monitor the loans and provide expert advice throughout the life of the loan.

The best way to understand how we can potentially help you with your trust deed investments to give us a call. We can discuss your specific investment portfolio and investment goals and offer personalized service and pricing. Call us today at 707-315-1119, or fill out our borrower form or contact form to learn more about our California private money loans and what California Private Money Lenders can do for you.

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Too Much Property For Bank Financing?

When Your Loan Doesn’t Fit the Equation

 

Real estate investors with multiple properties can face an uphill battle when looking to obtain financing for their investment properties. While income, credit and the ability to repay should be the determining factors, many funding sources cap the number of properties an investor can own. This can make obtaining financing for new properties, or refinancing existing properties, difficult at best.

 

Why You Need A Private Money Lender

We specialize in alternative financing, and our programs do not cap the number of properties that can be owned by a single investor. We can help obtain financing for most property types here in California, from residential investment property to multi-family property, commercial, mixed use, even industrial property and land. In addition, we have programs that can compete on rate.

When people think about alternative financing, private money or hard money lenders they often associate that with rates at or above 12%. We have a number of programs to fit the needs of qualified investors, even those who own many properties, that have competitively priced rates in the single digits. These programs are not limited to individuals with excellent credit, even with credit challenges we can often times offer highly aggressive pricing.

 

Many Factors Are Taken In Account

Our pricing takes into account a number of factors. Credit is one factor, but other compensating factors can overcome even the most challenged credit. Loan to value is another factor; with the right loan to value we can often times offer pricing that is as good or very similar to what we could offer someone with excellent credit.

Most of our funding is private, meaning we do not have rigid guidelines. Rather we are able to offer terms based on a make-sense type of underwriting. If the risk is lower, whether through income, assets, credit, loan to value or other factors that can be reflected in the pricing we are able to secure for your transaction. Every transaction is different and unique.

The best way to understand how we can potentially help is to give us a call. We can discuss your specific transaction and offer personalized service and pricing. Call us today at 707-315-1119, or fill out our borrower form or contact form to learn more about our California private money loans and what California Private Money Lenders can do for you.

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