Trust Deed FAQs

What are Discounted Notes?

A Discounted Notes is simply a Note, or promise to pay, which has a certain face value and balance remaining, which the current owner wishes to sell to another investor at a discount. The reason a Note holder would want to sell, is to get their cash immediately, rather than wait for the end of the Note, which is usually several years in the future. There are attractive profits in Discount notes for investors; But Beware! Your licensed broker knows how to evaluate the language and security of the discounted note to ensure you are protected. Your broker will obtain both a Title policy endorsement, as well as a Note Endorsement, which will help protect your position in the case of problems or non-payment.

What's wrong with these deals; Why do they pay so much interest.

The investment opportunities we present are typically on vacant land (at 50% ltv) or construction loans, where the house is not yet built. A borrower, even if he is a contractor with perfect credit, would be forced to hire a licensed contractor in order to get a bank loan. This additional 15% overhead cost, in addition to whatever the bank would charge, is a far greater cost than an SNM construction loan. In addition, our time-to-close can be as short as three or four days, while a bank loan could take several months or more.

Can you guarantee that I won't lose any money?

Although Trust Deeds are intrinsically safe, and are secured by the property which was pledged to borrow the money, they are not guaranteed or insured by any Federal or State Agency. The guarantee of Trust Deeds is prohibited by State Law.

My money is in a retirement plan, can I still invest it?

You can easily place your retirement money in a self-directed IRA. Call for details, and we can direct you to a financial institution that deals with self directed IRAs. Once you have established your account, you can place these funds into trust deeds.

How often do I get payments?

Payments are collected monthly and generally, with the exception of holidays and weekends, dispersed the same day as received.

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