Trust Deeds and Real Estate Investing
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Trust deeds and real estate investing

Trust Deeds and Real Estate Investing


Disclaimer disclosure

Disclaimer/Disclosure

Money invested through a mortgage broker is not guaranteed to earn any interest or return and is not insured. Before investing, investors must be provided applicable disclosures. Past performance does not guarantee future results or success. Consolidated requires a $20,000 minimum investment.

Nevada MLD#284 – Consolidated Mortgage, LLC.

1291 Galleria Drive, Suite 220

Henderson, NV 89014

P. 702.739.9090/877.739.9094


Company overview

Company Overview

  • Founded in 1977

  • Over $2 Billion in real estate transactions closed

  • Over $500 Million under management


What is a trust deed mortgage

What is a Trust Deed / Mortgage?

Definition of Trust Deed

Private Notes - Public Deeds

1st Trust Deeds Only


Types of trust deeds

Types of Trust Deeds

  • Land Acquisition

  • Land Development

  • Construction

  • Bridge


Why borrow from consolidated

Why Borrow from Consolidated?

Speed

Flexibility


The art of choosing good loans

The Art of Choosing Good Loans

  • 5 C’s of Lending

    • Collateral

    • Capacity to borrow

    • Character of the borrower

    • Capital

    • Conditions of the market

  • Fact Sheets


Risks involved in trust deed investing

Risks Involved in Trust Deed Investing

  • Borrower Defaults

  • Illiquid or Non-liquid

  • No tax benefits for non-qualified funds


Why does a trust deed belong in your portfolio

Why does a Trust Deed belong in your portfolio?

Is your portfolio diversified?

Growth vs. Income

(Example: 100 – Age = Growth Percent)


Fixed income bonds vs trust deeds

Backed by company issuing bond

Backed by borrower and collateral (real estate)

Fixed Income Bonds vs. Trust Deeds

  • Interest paid monthly, quarterly, semi-annually, annually

  • Interest paid monthly

  • Maturity Dates vary

  • Maturity dates typically are 12 months

  • Yield is traditionally

    6 – 8%

  • Yield is traditionally 12% and higher

  • Secondary market

  • No Secondary market


Fixed income annuity vs trust deeds

Backed by Insurance Company

Backed by borrower and collateral (real estate)

Fixed Income Annuity vs. Trust Deeds

  • Typically interest paid annually

  • Interest paid monthly

  • Maturity – Date of death

  • Maturity dates typically 12 months

  • Yield is traditionally

    3 – 5%

  • Yield is traditionally 12% and higher

  • Tax deferred if invested with IRA

  • Tax deferred


Why is there an opportunity to invest

Why is there an opportunity to invest?

  • State of the Market

    • Credit Crunch

    • Real Estate Bubble

  • State of the Southwest

    • Increasing Population

    • Increasing Employment


Clark county population

Clark County Population


Southwest regional employment

Southwest Regional Employment


Local hot spots las vegas

Local Hot Spots – Las Vegas

The Palazzo

Palms Place

Capital: $1.6 Billion

Rooms: 3,025 suites

Opened: Jan. 2008

Capital: $650 Million Expansion

Rooms: 347 Condos

Opened: Feb. 2008

Encore

The Plaza

City Center

Echelon Place

Capital: $1.9 Billion

Rooms: 2,045 suites

Estimated Completion: 2008

This project will make Wynn Las Vegas the fifth largest hotel in the world.

Capital: $5+ Billion

Rooms: 4,100

Estimated Completion: 2011

Current plans are to create a replica of the ultra luxurious New York namesake.

Capital: $8.4 Billion

Rooms: 6,650

Estimated Completion: 2009

This construction project is the most expensive privately funded in U.S. History

Capital: $4.8 Billion

Rooms: 4,713 Estimated Completion: 2010

The Echelon will be divided into five partially separated towers.


Have we hit bottom

Property Values

Land, Development and Construction

Lending Opportunities

Credit Crunch

Bank Quality Loans & Borrowers

Lending at the bottom

Have We Hit Bottom?

Why Lend in Today’s Market?


Example

Example

2006 Value$5,000,000.00

2008 Value$3,000,000.00

2008 Loan $1,800,000.00

2008 LTV60%

Would you make this loan?????


What types of funds can i use to invest

What types of funds can I use to invest?

  • Money in checking and/or savings account

  • Roth IRA or IRA

  • Corporate Funds

    (LLC, Inc, etc…)


Benefits of trust deed investing

Benefits of Trust Deed Investing

  • Secured by Real Property

  • Short Term Commitment

  • Double Digit Annual Returns

  • Interest Paid Monthly

  • Portfolio Diversification


Thank you for attending

Thank you for attending

Q & A


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