Frequently Asked Questions
What am I investing in?
What yield can I expect?
What is the minimum investment?
Can I invest retirement money (IRA, SEP, pension funds, etc.)?
Do I pay a load or commission when I invest?
Is there a minimum investment term?
What information is provided for tax reporting?
What happens if something changes with interest rates or real estate markets?
How are the loans serviced?
Why would borrowers pay 8.75% or more for a loan?
How do I invest?
What am I investing in?
You will own your proportionate interest in a real estate loan or portfolio of loans secured by 1st trust deeds, often including personal guarantees by the borrowers.
What yield can I expect?
7.5%-12% paid monthly.
What is the minimum investment?
The minimum investment amount is $50,000.
Can I invest retirement money (IRA, SEP, pension funds, etc.)?
Yes. This is an excellent vehicle for self-directed IRA and Pension Plans. If you weren’t aware that you could invest in trust deeds through your IRA, talk to us. We can show you how.
Do I pay a load or commission when I invest?
No. 100% of your capital gets invested and earns interest.
Is there a minimum investment term?
Investors participate in individual loans, which commonly have 1-year terms.
What information is provided for tax reporting?
Depending on the transaction, you will receive either a K-1 or a 1099 for tax purposes.
What happens if something changes with interest rates or real estate markets?
We make predominantly short-term loans averaging 12-18 months. This minimizes portfolio exposure to future changes in the interest rate environment and local real estate markets.
How are the loans serviced?
Foreclosure Consultants Inc. (“FCI”) serves as third party servicing agent for the Fund.
The FCI operation was originally the foreclosure division of Pacific Pension and Investment. It split off as its own company and incorporated in 1982 as Foreclosure Consultants Inc. dba FCI. In 1988 Mercury Savings turned over its private portfolio of about 2,000 loans to FCI for servicing. Also in 1988, FCI bought Aames Home Loan’s Private Lender Division (known as Private Lending Services), which consisted of over 2,000 investors. FCI currently services over $500 million in private lender loans and is one of the top independent trustee foreclosure companies in California.
Why would borrowers pay 8.75% or more for a loan?
Opportunities exist for entrepreneurs to purchase properties below replacement cost and resell at significant profits. Other opportunities include renovations, re-tenanting, or construction activity for which bank financing is not available. Our loan rates are well below these profit margins, allowing our borrowers to make greater returns with their available equity capital.
How do I invest?
Contact us about current offerings and qualification requirements.