The key to a successful investment portfolio is diversification. Trust deeds have been known to be a stable alternative to low yielding investments in an inconsistent market. With our assistance investors have been able to grow their investment portfolios by being able to offer consistent high yield returns investing into real estate trust deeds. We give the investor the option of a term as short as six months to up to 5 years knowing what an impact compound interest has on money over time. Each individuals needs are taken into account and we take it upon ourselves to fit their needs and make them comfortable knowing their investment is backed by real estate.
What is a trust deed
The details of the loan are spelled off in a separate promissory note, and the trust deed is recorded at the County Recorder’s workplace. The trust deed serves appropriate notice to the globe that the topic home is pledged to secure a loan. It also accommodates a fast strategy for dispossession if a borrower were to default on a loan.
There aren’t many other investment vehicles that will optimize your returns while minimizing your publicity. We do this by only financing on very first trust deeds with an optimum loan to value of 65%-75%. As numerous specialists think that the genuine property base is right here or at minimum close. Values will only be rising from right here. We like to take the safe approach by restricting our maximum loan to value of our investor’s money to achieve 65%-75% of the value of the home. This immediately offers the investor a minimum of 25%-35%of protective equity in situation of a standard on the loan.
Additionally, we mainly concentrate on Southern California in both the commercial and residential sector. However, we are open to many markets throughout the nation. A vast majority of the home-based financing that we do are quick term for rehabbing properties and purchase deals for assets. We cannot lend on owner occupied residential properties.
Why Trust Deeds
You are the bank, the actual lender on real estate that are documented at the county recorders office. This informs anyone on the planet that you've got interest in that real estate as a lender. You can harvest your interest monthly that could vary from 7% to 12% with regards to the criteria you're prepared to lend on. Along with numerous factors, your yield is going to be proportional to the loan term together with its percentage of protective equity.
You're in command of the criteria for any loans you're going to be able to lend on. You'll be able to select from location, LTV (loan-to-value), max loan amount and term. We're going to then only give you trust deed choices which fit the conditions you've put down. We've been a genuine private lending company that customizes the requirements of both our clients and investors. Our company becomes the broker and you will stay as the lender.
We're able to provide this to private individuals, corporations, pension plans, 401ks, retirement funds, IRAs, Roth IRAs, Self-Directed IRAs, and SEP accounts. Uncertain of guidelines for using any one of these investment vehicles to invest your money in real estate, don't hesitate to consult with us and we will help answer all of your questions.
Where are our investments?
Mostly California properties. However, many other market throughout the nation which fall into our guildeline at conservative loan to value 65% LTV. Right now we loan our private investors funds in CA and we are partnered with strategic associates that finance the deals outside of California. We have got a substantial understanding of the California market and now we have developed an extremely respected name lending in California. Furthermore, California is among the leading states therefore providing us the capability to be a stride above the rest. Right now we create funding for up to 65%-75% LTV (loan-to-value). Given that the market rebounds, your risk will drop to a lower LTV over the following few years.
Step 1 – How to get started Speak to one of our experienced Investment Executives and Call 1.714.462.1305 or submit the online form to arrange your consultation or perhaps if you have any additional inquiries.
Step 2 – Pick & Choose or Pass Lincoln Equity underwrites as well as evaluates all loan submissions. We're going to then match the best loan along with a suitable lender (private individuals such as yourself)So in accordance with the requirements you established with your Investment Executive, Lincoln Equity will supply you a TDO (Trust Deed Offering) with assorted investment opportunities shortly after we underwrite them and make certain that it's an ideal loan, however ultimately you're able to decide whether or not you want to move forward with the deal.
Step 3 – The Package As soon as you've reviewed the trust deed offering from us and you also like it we're going to then present you with a comprehensive program for your analysis. This may be set with your Investment Executive, certain investors favor more and others prefer less, we also have investors which will allow us to execute on their behalf because of their hectic schedule nonetheless we still show the TDO for their initial approval. What’s in the package? (Trust Deed Offering • Property Profile • Appraisal • Loan Application • Credit Report • Rent Survey)
Step 4 – Commit We're going to present you with an additional package when you provide us with the go ahead for first one. What’s in the package? (Loan Service Agreement • Lender Disclosure Forms)
Step 5 – Signing Loan Documents Loan documents will be drawn upon the approval and agreement of the terms by both parties. The deed of trust and a promissory note will be signed by the client along with all other loan documents and serve as the security for the property.
Step 6 – Escrow Balances & Funds You, the lender will need to bring your funds in the form of a personal check, wire, or cashier check to turn into escrow. Escrow will then balance the transaction and make sure all parties are secure. Title will record the deed of trust at the County Recorder's Office.
Step 7 – Now What? You will will be given a receipt from the County Recorder acknowledging that your deed of trust has been recorded. Additionally, you will receive a duplicate of the promissory note, the title insurance policy along with the fire insurance loss payee. What about my interest? (You're going to receive your interest straight into your bank account. You would have this set up in Step 4 when you fill in and submit the loan servicing agreement. You are going to automatically acquire your interest payments each month up until the loan is fully paid off. At this point, you'll receive all of your money back.)