Trust Deeds and Real Estate Investing
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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



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




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 LTV 60%

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



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