In the marketplace of investment opportunities currently available, trust deeds, trust deed funds and other forms of real estate investments are emerging as a vehicle of choice for many investors.

Investment Options

Trust Deeds Whole (single) or fractional interests in trust deed investments:

Whole (Single) Notes
Investors may purchase single whole notes secured by real property. The investor owns the entire note and the borrower pays the investor monthly mortgage payments which are collected by a servicing agent and distributed to the investor every month.

Fractionalized Notes
Fractional notes are single whole notes secured by real property that are owned by 2 to 10 investors. Each investor owns an undivided interest in the note and receives a pro rata share of the monthly mortgage interest that is collected by a servicing agent and distributed to the investors every month. Referred to in the industry as multi-lender transactions (multiple lender loans), fractionalized loans accommodate up to ten lenders (husband and wife are counted as one) in such loans. The major criteria is that notes or interests of the purchasers must be identical in their underlying terms, including the right to direct or require foreclosure, interest earned, etc. The degree of ownership is determined by the percentage of interest purchased, i.e., if the principal amount of a given note is $200,000, and $40,000 is invested, the investor owns a 20% interest in the transaction.

Trust Deed Funds A separate legal entity that holds property or assets of some kind for the benefit of a specific person, group of people or organization known as the beneficiary.

Mortgage Pool
A Mortgage Pool is financial entity (real estate partnership) in which the underlying assets are mortgages (trust deeds) that offers investors participation as a limited partner, in a pool of trust deeds. Partners receive income generated from mortgage interest which is typically distributed monthly or quarterly.