Again your money is secured by real estate. However, this trust deed is subordinate to the 1st. Which means the 1st has priority. Because of that rates on our 2nd trust deeds are considerably higher. 2nd trust deeds are typically used to fund the rehab, debt service. 2nd trust deeds will not exceed 85% CLTV.
For example, We have a property that needs 75K in repairs and the Monthly debt service on the 1st is 3033.00. if this property takes 6 months to complete and sell the total amount of the debt will be 87,132.00 our 2nd trust deed returns are as follows:
0-90 days 10%
91-120 days 12.5%
121-150 days 15%
151-180 days 17.5%
181days + 20%
Given the example above the investor would receive 87132+15,248. This return is 35% annualized.
Before investing in a trust deed for a property you will receive a detailed report on the values, the plan of action, and the proposed timeline.
*All funds are paid and returned via one of our trusted escrow companies.
* The SEC defines an accredited investor as either: an individual with gross income exceeding $200,000 in each of the two most recent years or joint income with a spouse or partner ang $300,000 for those years and a reasonable expectation o
f the same income level in the current year. Or a verified net worth of $1M.
Crowd funding options coming soon. This allow investors with amounts under 25K.