Education
What is a Trust Deed investment?
Pacific Mortgage Fund funds residential and commercial real estate loans with capital invested by private individuals, corporations, pension plans, and retirement programs; i.e., IRAs and Keoghs. Each loan is secured by a trust deed on the real estate asset. The loans are conservatively underwritten and typically do not exceed 70% of the property value. Investors are encouraged to review each investment opportunity closely prior to investing.
Why do borrowers seek money from Pacific Mortgage Fund?
In today’s turbulent marketplace, many investors and developers of residential and commercial real estate cannot obtain financing from traditional lenders. This prevents many developers and excellent borrowers from receiving the low low-to-cost or value financing they need in order to complete their projects. Pacific Mortgage Fund has taken advantage of this void by offering an alternative source of financing.
How much can I invest, how long is the term of my investment, and who manages my investment?
The minimum investment is $50,000. The typical annual rate of return will range from 10% to 15% which is distributed monthly to investors on trust deed investments. Returns for our mortgage pool fund is T-Bill +4%. Investment terms range from 3 months to 36 months depending upon the term of the loan. Pacific Mortgage Fund has created a specific program for private investors or corporations to take advantage of trust deed investing in their IRA or Keogh accounts. We service each loan and provides the investors quarterly updates on the status of their investment(s). If a loan is packaged and sold to an affiliate the investor is immediately notified and the investor can choose to accept the payoff or reinvest.
How does Pacific Mortgage Fund earn money?
We earn fees paid by the borrower upon each loan closing. In addition,we earn a fee for servicing each loan which is deducted from the interest paid by the borrower.Pacific Mortgage Fund is committed to offering a transparent investment vehicle and provides each investor a detailed schedule of all fees.
What if the borrower is unable to repay the loan?
Pacific Mortgage Fund actively manages each loan and updates investors quarterly on their status. In the unusual circumstance in which the borrower is unable to make the monthly interest payments or repay the principal of the loan, Pacific Mortgage Fund will take corrective actions to make the loan current, which may include foreclosure of the property. Because of Pacific Mortgage Fund ’s conservative underwriting approach, the proceeds from the sale of the property will, in most cases, repay the outstanding principal. For additional questions regarding the risk of each investment, please contact our office.
How do I get started?
Pacific Mortgage Fund is actively seeking investors who seek to diversify into high yield investments. As a Pacific Mortgage Fund investor, you will receive quarterly statements detailing the status of your investment(s). In addition, you will receive our monthly newsletter discussing recent trends in real estate and the lending markets. We look forward to establishing a long-term relationship and acting as your trusted advisor in the real estate marketplace.
Please contact Pacific Mortgage Fund to learn more about our investment opportunities. We are focused on providing the information you require in order to make an educated investment decision.