Secured Investments

Mortgage Funds (Pools)

Investors purchase shares in a mortgage fund consisting of a large number of loans secured by deeds of trust and mortgages on real estate. This is basically a mutual fund of secured loans. ( Minimum $10K )

Here is how it works.
Investors purchase Shares in the Mortgage Fund. The Fund will engage in business as a mortgage lender for the purpose of funding loans made to the general public, and acquire existing loans secured by deeds of trust and mortgages on real estate throughout the United States. The Mortgage Funds contain a large number of highly diverse trust deed loans secured by real estate.

Individual Trust Deeds
Investors purchase whole or fractional interest in specific first or second trust deeds.

Equity Positions

Investors purchase positions in a wide variety of commercial real estate loans. The loans include commercial property, development sites, construction, etc.

Frequently Asked Questions

1. How am I protected?

All of our loans are secured by real property.

2. How long do these investments last?

Individual Trust Deed investments usually last 1 to 5 years. Mortgage Fund investments have an indefinite duration based upon renewal or redemption of your shares.

3. Can I liquidate my investment if I have an emergency?

An individual Trust Deed investment would have to be sold to another investor. This could happen overnight or could take much longer depending upon the availability of funds. If investing in the Mortgage Fund, you would be obligated for the terms outlined in the offering circular.

4. How much interest will I earn on my investment?

It varies, but currently the investors are earning between 10% to 20% annually.

5. What are the risks?

On an Individual Trust Deed investment, if the borrower defaults on their payment our recourse would be to initiate a foreclosure proceeding, acquire title to the property and place the property on the open market for sale. The sale proceeds then go to loan satisfaction. This does not happen offer but must be considered since it can be a long process. In the Mortgage Fund, your individual investment is diversified by the entire loan in the pool.

6. How much money do I need to start investing?

It depends upon the total size of the investment. Smaller investments such as the Mortgage Fund can take as little as $10,000. Larger First and Second Trust Deeds can range form between $50,000 to as much as $1,000,000 or more.

More details

Range of Funds Typically Available: No upper or lower limit.

First Steps
whether you are raising debt or equity capital, you will run into the same behavior: Lenders and equity investors will be reluctant to let go of their money. While the attitude is the same, the motivations are different.

The bank would simply love to lend you the money. After all, the only way it makes an above-average return is by lending what customers deposit. But because a bank is lending other people's money, it operates in what is known as an "abundance of caution" mode. That is, banks by design are only allowed to make loans in situations of absolute safety. Working with emerging growth companies means few instances of absolute safety, hence the challenge of loan financing.

Equity investors would generally like to finance your company as well. But they too have problems. But they too have problems. Emerging growth companies are not just risky; they're also illiquid. Once they swallow the risk, most equity investors are still reluctant to cut a check because they know that even if the company succeeds, it will be tough to recoup their money. To do so, the company generally must go public or be bought out. And if the company succeeds only on a marginal basis, their investment can remain trapped inside the company.