Trust Deed Investments
1. The first of these is a standard trust deed investment, where we negotiate a loan with a lending individual or group of individuals at a figure of around 70% of the CURRENT market value of the asset that we are acquiring. A given individual, couple, or entity including an IRA can loan us money and hold 100% of a given loan or take a fractional interest in the loan. For Example: Terms of a straight interest only loan might be as follows:
a. Term of the loan, four years, payable monthly with $466 per month interest only at 8% per annum. Balance due in four years.
b. To be secured by by a first trust deed against the property, which note would be due upon sale.
c. All loan funding is done through a third party title company, and loans are serviced by a third party loan servicing company.
NOTE: WE ARE NOT ACTING AS A MORTGAGE BROKER IN THESE TRANSACTION, BUT WE WOULD BE A PRINCIPAL BORROWER IN THE TRANSACTION.
2. The second debt offering variety is a program where the investor puts up 100% of the cost of buying an asset. In this case we might pay 8% on a current rate for the money and throw in an profit sharing split whereby up to half of the net cash proceeds when the asset is sold is split with the lender. This would be called a SAM mortgage or a shared appreciation mortgage. Ask for more information. This gives a debt investor the opportunity to earn equity returns but in a secured debt position.
Soon we will be offering investors who express an interest in trust deed investment opportunities, access to a database of available transactions that we are involved with. The database will include cash flow projections, pictures and neighborhood data on the collateral for a proposed loan.
a. Term of the loan, four years, payable monthly with $466 per month interest only at 8% per annum. Balance due in four years.
b. To be secured by by a first trust deed against the property, which note would be due upon sale.
c. All loan funding is done through a third party title company, and loans are serviced by a third party loan servicing company.
NOTE: WE ARE NOT ACTING AS A MORTGAGE BROKER IN THESE TRANSACTION, BUT WE WOULD BE A PRINCIPAL BORROWER IN THE TRANSACTION.
2. The second debt offering variety is a program where the investor puts up 100% of the cost of buying an asset. In this case we might pay 8% on a current rate for the money and throw in an profit sharing split whereby up to half of the net cash proceeds when the asset is sold is split with the lender. This would be called a SAM mortgage or a shared appreciation mortgage. Ask for more information. This gives a debt investor the opportunity to earn equity returns but in a secured debt position.
Soon we will be offering investors who express an interest in trust deed investment opportunities, access to a database of available transactions that we are involved with. The database will include cash flow projections, pictures and neighborhood data on the collateral for a proposed loan.
