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TRUST DEED INVESTING

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Visit: REILoanPro.com TRUST DEED INVESTING Trust Deed Investor - a person seeking a competitive rate of return by loaning private funds on real estate - loans are secured by real estate - makes a higher interest yield than would typically be obtained by a regular bank and is secured by the borrower’s equity in the real estate transaction Amount of Money needed to Start California Bureau of Real Estate (formerly the Department of Real Estate or the DRE) o released new guidelines via SB978 in 2013 o No one trust deed can be more than 10% of your net worth (this does not mean you can't have more than 10% of your net worth invested in trust deeds) o requires brokers to have investors fill out an Investor Questionnaire (also known as Real Estate form 870 of re870)  brokers are being audited by a third party auditor that reports back to the CBE on a quarterly basis  CBE expects this form to be on file for each transaction  was created to ensure each investment is "suitable" for the investor  Information asked are as follows: • Name • contact info • education • experience • income • net worth • liquid capital • goals for the investment Following can be used to place funds: • IRAs • Self-directed IRAs • Roth IRAs • several other retirement account Properties loaned: • 9% trust deed program  Five-year term  Single Family  Non-owner occupied homes that have been fixed and rented by an investor • 11% trust deed program  One-year term  Single Family  Non-owner occupied homes that are typically in disrepair and will be fixed and resold to a retail buyer • 12% trust deed investments  one-year term  new construction  borrower is building a new property with the intent to resell Annualized yield - will depend on the length of individual investment and the availability of a property for rollover Fractionized loans - considers immediate family members, entities, and family trusts Loan out amount - main focus is first time buyer inventory, loans range from the $40,000-$350,000 Loan-to Value - up to 60-70% of the After Repaired Value (ARV) of the home - 60-70% LTV - if the property is in our long-term rental program Points - are the fees paid by the borrower to the lender for acting as broker in a hard money loan transaction. Usury laws at the California Office of the Attorney General - Regulations require a professional broker to obtain higher returns and for trust deed investors Advantages of working with a professional and experienced Broker: - allows you to make higher annual returns - expands the marketplace for you - lowers your risk - saves you time - ultimately increases your return tremendously Servicing - lender charges servicing fee annually on all programs Loan servicing - includes: • back-office tasks of collecting payments from borrowers • disbursing payments to the investor • mailing required notices and statements • year-end tax documents for the IRS and franchise tax board • maintaining adequate borrower insurance coverage • coordinating foreclosure proceedings if necessary (rare) Trifecta of estate planning: 1. tax advisor 2. financial or retirement planner 3. your attorney California Bureau of Real Estate - have an entire document you can read on the subject of Trust Deeds Trust Deed Investors can be: • Private individuals • Corporations • pension plans • 401K • Custodianships • LLCs • retirement funds • IRAs • Roth IRAs • Self-Directed IRAs • Charitable Remainder Trusts (CRTs) • Foundations • Endowments • Family trusts • Family members • SEP accounts Fire insurance - Is required - Investor is required to inform the instance company that the property is vacant - require coverage in the amount of the loan or replacement guarantee Independent appraisal - is prepared by the time the property is presented for funding - a copy of the appraisal along with the address will be sent for the investor to view the property Visit: REILoanPro.com
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Beau Eckstein (3 years ago)
*TRUST DEED INVESTING* Trust Deed Investor - a person seeking a competitive rate of return by loaning private funds on real estate - loans are secured by real estate - makes a higher interest yield than would typically be obtained by a regular bank and is secured by the borrower’s equity in the real estate transaction Amount of Money needed to Start California Bureau of Real Estate (formerly the Department of Real Estate or the DRE) o released new guidelines via SB978 in 2013 o No one trust deed can be more than 10% of your net worth (this does not mean you can't have more than 10% of your net worth invested in trust deeds) o requires brokers to have investors fill out an Investor Questionnaire (also known as Real Estate form 870 of re870) brokers are being audited by a third party auditor that reports back to the CBE on a quarterly basis CBE expects this form to be on file for each transaction was created to ensure each investment is "suitable" for the investor Information asked are as follows: • Name • contact info • education • experience • income • net worth • liquid capital • goals for the investment Following can be used to place funds: • IRAs • Self-directed IRAs • Roth IRAs • several other retirement account Properties loaned: • 9% trust deed program  Five-year term  Single Family  Non-owner occupied homes that have been fixed and rented by an investor • 11% trust deed program  One-year term Single Family Non-owner occupied homes that are typically in disrepair and will be fixed and resold to a retail buyer • 12% trust deed investments one-year term new construction borrower is building a new property with the intent to resell Annualized yield - will depend on the length of individual investment and the availability of a property for rollover Fractionized loans - considers immediate family members, entities, and family trusts Loan out amount - main focus is first time buyer inventory, loans range from the $40,000-$350,000 Loan-to Value - up to 60-70% of the After Repaired Value (ARV) of the home - 60-70% LTV - if the property is in our long-term rental program Points - are the fees paid by the borrower to the lender for acting as broker in a hard money loan transaction. Usury laws at the California Office of the Attorney General - Regulations require a professional broker to obtain higher returns and for trust deed investors Advantages of working with a professional and experienced Broker: - allows you to make higher annual returns - expands the marketplace for you - lowers your risk - saves you time - ultimately increases your return tremendously Servicing - lender charges servicing fee annually on all programs Loan servicing - includes: • back-office tasks of collecting payments from borrowers • disbursing payments to the investor • mailing required notices and statements • year-end tax documents for the IRS and franchise tax board • maintaining adequate borrower insurance coverage • coordinating foreclosure proceedings if necessary (rare) Trifecta of estate planning: 1. tax advisor 2. financial or retirement planner 3. your attorney California Bureau of Real Estate - have an entire document you can read on the subject of Trust Deeds Trust Deed Investors can be: • Private individuals • Corporations • pension plans • 401K • Custodianships • LLCs • retirement funds • IRAs • Roth IRAs • Self-Directed IRAs • Charitable Remainder Trusts (CRTs) • Foundations • Endowments • Family trusts • Family members • SEP accounts Fire insurance - Is required - Investor is required to inform the instance company that the property is vacant - require coverage in the amount of the loan or replacement guarantee Independent appraisal - is prepared by the time the property is presented for funding - a copy of the appraisal along with the address will be sent for the investor to view the property Visit: REILoanPro.com Call: 925-852-4720 o Email: [email protected] #hardmoney #privatemoney  
Beau Eckstein (4 years ago)
*Trust Deed Investing* http://beaueckstein.com TRUST DEED INVESTING   Trust Deed Investor -          a person seeking a competitive rate of return by loaning private funds on real estate -          loans are secured by real estate -          makes a higher interest yield than would typically be obtained by a regular bank and is secured by the borrower’s equity in the real estate transaction   Amount of Money needed to Start California Bureau of Real Estate (formerly the Department of Real Estate or the DRE) o   released new guidelines via SB978 in 2013 o   No one trust deed can be more than 10% of your net worth (this does not mean you can't have more than 10% of your net worth invested in trust deeds) o   requires brokers to have investors fill out an Investor Questionnaire (also known as Real Estate form 870 of re870) §  brokers are being audited by a third party auditor that reports back to the CBE on a quarterly basis §  CBE expects this form to be on file for each transaction §  was created to ensure each investment is "suitable" for the investor §  Information asked are as follows: ·         Name ·         contact info ·         education ·         experience ·         income ·         net worth ·         liquid capital ·         goals for the investment   Following can be used to place funds: ·         IRAs ·         Self-directed IRAs ·         Roth IRAs ·         several other retirement account       Properties loaned: ·         9% trust deed program §  Five-year term §  Single Family §  Non-owner occupied homes that have been fixed and rented by an investor ·         11% trust deed program §  One-year term §  Single Family §  Non-owner occupied homes that are typically in disrepair and will be fixed and resold to a retail buyer ·         12% trust deed investments §  one-year term §  new construction §  borrower is building a new property with the intent to resell   Annualized yield -          will depend on the length of individual investment and the availability of a property for rollover   Fractionized loans -          considers immediate family members, entities, and family trusts   Loan out amount -          main focus is first time buyer inventory, loans range from the $40,000-$350,000   Loan-to Value -          up to 60-70% of the After Repaired Value (ARV) of the home -          60-70% LTV - if the property is in our long-term rental program   Points -          are the fees paid by the borrower to the lender for acting as broker in a hard money loan transaction.     Usury laws at the California Office of the Attorney General -          Regulations require a professional broker to obtain higher returns and for trust deed investors   Advantages of working with a professional and experienced Broker: -          allows you to make higher annual returns -          expands the marketplace for you -          lowers your risk -          saves you time -          ultimately increases your return tremendously   Servicing -          lender charges servicing fee annually on all programs   Loan servicing -          includes: ·         back-office tasks of collecting payments from borrowers ·         disbursing payments to the investor ·         mailing required notices and statements ·         year-end tax documents for the IRS and franchise tax board ·         maintaining adequate borrower insurance coverage ·         coordinating foreclosure proceedings if necessary (rare)   Trifecta of estate planning: 1.       tax advisor 2.       financial or retirement planner 3.       your attorney   California Bureau of Real Estate -          have an entire document you can read on the subject of Trust Deeds   http://beaueckstein.com #privatemoneylenders #bridgeloan   #houseflip  #investorsloan

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