What is a Deed of Trust?
A Deed of Trust is also referred to as a Trust Deed. A Trust Deed is the security instrument that gives the lender an interest in the property that the borrower has pledged as security based on the performance of the note. The collateral is the real estate property secured by the Trust Deed that is legally recorded by the County where the subject property is located.
Who are the Borrowers?
Borrowers are business people who have experience in real estate investments. They buy homes at discount, then rehab the properties, and sell at a higher price based on the improved value of subject property. In addition, these borrowers have done their due diligence in determining the feasibility of the investment project.
Sometimes borrowers are individuals (landlords, business owners, real estate developers, etc.) who need cash and use their non-owner occupied property as collateral. Also, there are individuals who have experienced extreme financial hardship and are facing foreclosure from default, but have significant equity in the home. These scenarios are handled on a case-by-case basis, and are subject to more risk assessment parameters.
Why is Trust Deed investing a sound investing practice?
Investing in Private (Hard) Money Trust Deeds is like investing in a bond. The Trust Deed will yield you monthly payments with returns above what traditional Trust Deeds offer. In addition, the principal balance is paid back to the investor in a relatively short duration. Typically, Trust Deed investment holding periods have a range of 6 months to 3 years.
Like all investment practices, Trust Deed investing is high risk. Investing in Trust Deeds also has high returns. These investments are not tied to the stock market and your investment is secured by the Trust Deed to the subject property.
What areas do you fund?
We fund primarily in metropolitan areas located in CA.
What is the minimum investment amount for a registered investor with Prime Equity Mortgage, Inc.?
The minimum investment is $25,000.00
How do you find Trust Deed opportunities?
Because of our license, Prime Equity Mortgage, Inc. has the unique capacity to deal directly with the public and communicate rate, terms, and discuss borrowers financial position so we can locate or fund private/hard money to our clients. We seek and receive requests from prospects looking for alternative real estate asset based financing.
In addition, to maintain the quality of inquiries to funding, we research real estate and economic conditions of metropolitan statistical areas and pay close attention to open market operations performed by the Federal Reserve. We do this to understand how the Fed is influencing interest rates which effects the business investing climate, so we can anticipate PEM's registered investor returns.
We include this information in our marketing strategies and locate opportunities that best fit our risk management models. Since the market is consistently changing, our models change to best serve our clients with optimum value.
What rate of return does Prime Equity Mortgage, Inc. offer?
Our Trust Deed purchases can generate investor yields between 7.99% - 11.99%
What loan-to-value does Prime Equity Mortgage, Inc. offer?
Generally, our loan programs do not exceed 65% LTV
What happens after the loan closes?
Your loan will be serviced by a nationally recognized real estate loan servicer. Loan payment collection and maintenance is done by the loan servicer.
What happens if I need to liquidate my investment for cash?
There is an active market for Trust Deeds. If you need to convert instrument into cash, there is always a willing and able buyer of these notes.
How can I get started?
Inquire about becoming a Registered Investor today!