Investors

The investor is buying a whole loan that has been closed and recorded.  All the loans currently offered have been funded from funds from our own LLC and then closed. We do our own due diligence on every loan so that we determine it is of such quality that if a loan is never sold, we are prepared to hold it in our own portfolio as a long term investment. Many of the loans currently offered are seasoned loans, meaning that payments have been received and there is a track record on the borrower. Many of our competitors are selling loans that are ready to fund, but are waiting on an investor to put up the funds so the loan can close. We feel that our method of funding the loan first with our own funds and then putting it up for sale to investors is a better system and makes for a safer and more attractive investment for our customers. At Golden Capital Group, we want our investor’s experience to be a positive one. Good word of mouth from our customers always leads to more business in the future. We take that responsibility very seriously.

Yes, all the loans currently listed on our website have already been funded.  We have them setup in our servicing portfolio and can be purchased with-in 24 hours.

No, when you buy a funded loan, you are the sole owner of that investment.  We do not pool investors money.

Purchasers of Trust Deed investments can be individuals, whether directly or through their retirement funds, family trusts, investment pools and corporations.

An investment in a single trust deed can be divided among several owners. For instance, a $400,000 note might have three buyers, one investing $200,000 and two other individuals investing $100,000 each. The loan servicer would then divide the monthly payments with 50% going to one investor and 25% going to each of the smaller investors. This can be a good way to invest in a quality loan even if you don’t have the available funds to purchase the entire loan. Generally, the somewhat larger loan amounts lend themselves to being fractionalized.

There is not a guarantee similar to having FDIC insurance on your deposits in the bank, but look at what those deposits are yielding today. If you open a 2 year CD today with a $100,000 deposit you will do well to get 1.25%. A Trust Deed has some element of risk but a yield in the 9% to 12% range compensates greatly for it. The protective equity in the property is your shield against taking a loss. If your loan is 65% of today’s value, the risk of the borrower defaulting and you eventually taking a loss is relatively small. In the case where the borrower runs into difficulty, it’s in the borrower’s best interest to sell the property and recover his equity rather than let it go into foreclosure and lose his equity.

Yes. Real estate loans are an acceptable use for IRA’s , 401-K’s, Keogh’s and other retirement plans. By opening a Self-Directed IRA account, you can put your funds to work in a number of real estate related ways. As always, you should consult with your Attorney or Tax Advisor before making this type of investment. There are many companies that specialize in setting up these kinds of accounts.  Please inquiry with our company for a list of companies that you can research.

If a borrower stops making payments, the Trustee will file a Notice of Default and if the borrower does not bring the loan current, foreclosure proceeding would begin. With the protective equity in the property, the borrower has a lot to lose if the loan goes to foreclosure. Generally, the borrower will try to sell the property quickly to salvage his equity. If not, when the property goes to a Trustee’s Sale, the note holder is entitled to recover all foreclosure costs, late charges, back interest and all the remaining principal balance from the sale. If there are no bids, title to the property reverts to the note holder and then the property can be put up for sale on the open market.

No there is no upfront fee or commission to Golden Capital Group when you purchase a loan. Your bank may charge you a wire fee. Once you wire your funds to purchase the loan, interest stars accruing on your investment. Also, the servicer you choose to service the loan will have a monthly servicing fee.

There is no formal market for Private Money Trust Deeds like you would have for a publically traded stock.  Generally, an investor should be reasonably certain that the term of the loan purchased is acceptable for your investment strategy.  However if the need arises to resell the trust deed investment, there are some companies with websites that do list Trust Deeds for sale and that can be an avenue to liquidate your investment. You should be aware that there may certain costs and possibly discounts required to sell your investment. Golden Capital Group can also lend assistance if you decide to sell but cannot guarantee a sale or project a certain price upon resale.

Rates are relatively high for private money lending right now because lending standards for real estate loans from the banks are so tight (many would argue, overly tight) that there is a huge gap in the market. Until just a few years ago, there were many alternatives to for a borrower who was turned away by the banks. Essentially all those sources have dried up with the financial meltdown. Wall Street traders saw the huge profits to be made trading mortgage backed securities and gradually watered down all the sensible lending guidelines that had been developed over the years and essentially poisoned the well for any alternative lending products. Now, loans that would have been easily funded a few years ago have no takers among traditional lenders.  A borrower with good equity in a property and a good exit strategy has to turn the private market to obtain financing and pay the going rate.

Your investment timeframe will be dependent on the specific loan you purchase.  The loan terms in our portfolio generally range from 6 months – 3 years.

In today’s market, rates will generally be from 9% to 12%. Rates will vary depending on the amount of protective equity in the property, the borrower’s credit profile and the type and condition of the property. Rates in the private money market generally are trending downward due to such factors as the overall downward trend of all rates, increased competition and an improving real estate market.

Any savvy investor looking to diversify their investment portfolio can benefit from investing in trust deeds.  Ideally, the investor should have a good understanding of real estate and lending or rely on a trusted advisor to guide them.  Trust deed investments are not guaranteed   like a bank Certificate of Deposit backed by FDIC insurance. Therefore the buyer of a Trust Deed needs to do their own due diligence when purchasing a Trust Deed. Of primary importance is the current value of the property secured by the Trust Deed. Each loan package will have an appraisal giving the value for the subject property. Buyers should review the appraisal to be sure they agree with the value and take steps to verify its accuracy.

A Trust Deed investment can offer a steady income stream to an investor looking for a high rate of return.  With the protective equity position the trust deeds offer, the risk to the investor is very low. Deeds of Trust are very simple to understand investments. Most investors will have had some experience being a borrower on a home loan. By owning a trust deed, you are taking the place of the bank or lender. The elements of risk are easy to understand. With a good equity position, borrowers who are in trouble will usually sell the property and pay off the loan rather than letting it go to foreclosure and risk losing their equity.

There is no minimum investment. We only sell funded loans and do not “pool” investors money, the minimum investment would be our smallest available loan.  Also, you can purchase a fractional ownership in a loan.  A fractional ownership can be in 25%, 50% or 75% increments.

When purchasing a trust deed, you’re essentially buying the ownership of a loan that is secured against real estate.