About The Level 4 Funding Trust Deed Investing
The mission of Level 4 Funding is to provide the investor with the best possible Trust Deed Investment opportunity. Investing in Deeds of Trust is a great way to obtain a constant secured return on your investment. Your trust deed investment is back up by a hard asset, typically real estate and the payments flow directly to you. You are in complete control of the investment, all documentation, Notes, Deeds of Trust, Personal Guarantees are yours with no middle man in between. All income goes directly to you with the borrower paying for all processing fees.
- Your Trust Deed investment is secured by real property not a promise from the bank or the government.
- You can go look at your Deed of Trust Investment. Go drive by and see the actual property.
- You have a good equity position in the property, typically 30-70% of value.
- The payments go directly to you.
- You are getting a very good return on your Trust Deed Investment when compare to the bank.
- You are in 1st position on the Deed of Trust.
- You have a personal guarantee from the borrower in the Trust Deed Investments.
- The property is protected by Hazard Insurance.
- Your title is protected by a Title Policy.
- You are in control of your investment.
- Mortgage Summary of the Trust Deed Investment
- Notarized Assignment of Deed of Trust to you
- Promissory Note
- Personal Guarantee from borrower
- Title Report for the title company
- Lender Title Insurance ALTA Policy
- Homeowner insurance with you added as the additional insurance
- Mortgage Application of the borrower
- Credit Report of the borrower
- Appraisal from independent, certified appraiser or a CMA or BPO
- Mortgage Serving Agreement
- Joan got tired of the poor returns from the bank and took my money out and is no making 12% on the investment. She is much smarter than me.
- Donna got tired of the poor bank return and is now making 12% on her investment.
- David got tired of the poor market returns and is now making 12% on his investment.
- I found that this is a quick way to earn 12 percent on my money. Don’t know where else you could get such a nice return on your investment” – Joan
- I’ve done 3 deals and I love the 12% on a secured investment.” – Donna
- I was scared and not certain about the deals, but when I talked to my attorney I realized the investment was safe and secured, I was ready to go” – David
Your rate of return varies from 9-29%, however the rate of the 1st Trust Deed is normaly 12%.
Loan amount start at $50,000.
The loan on the Deed of Trust is from 6-24 months.
We make a broker fee, typically 1-3% of the total amount.
The Broker Fee is paid by the borrower.
The investor typically makes 12%.
A Trust Deed is a document recorded with a county recorders office creating a secured lien on real property, which provides collateral for lenders and trust deed holders.
1. Your Trust Deed investment is secured by real property not a promise from the bank or the government.
2. You can go look at your Deed of Trust Investment. Go drive by and see the actual property.
3. You have a good equity position in the property, some times 30% of the value.
4. The payments go directly to you.
5. You are getting a very good return on your Trust Deed Investment when compare to the bank.
6. You are in 1st position on the Deed of Trust.
7. You have a personal guarantee from the borrower in the Trust Deed Investments.
8. The property is protected by Hazard Insurance.
9. Your title is protected by a Title Policy.
10. You are in control of your investment.
A borrower who owns or wants to own real estate needs a Mortgage. The borrower executes a Promissory Note wherein the borrower promises to repay the lender. The recorded Trust Deed creates the secured interest attached to the borrowers real property. If the borrower does not pay as promised, the Lender – Trust Deed Investor can look to the real property for repayment and/or recovery of their invested capital.
A Trust Deed investment occurs when an investor purchases all or part of the Note and Deed of Trust. The Investor can earn a 10% +/- annualized yield and receives monthly interest payments.
There are many reasons borrowers request private money Mortgages. A few include:
Short term (1 to 5 year) Mortgages
To pay judgments and liens such as Federal or State taxes
Property may have some problems that make it difficult to obtain a bank Mortgage
The LTV or Mortgage to value ratio is the ratio between the mortgage Mortgage and the value of the real estate, pledged as security, which is expressed as a percentage. This is referred to as the Mortgage-to-Value Ratio:
Mortgage = $225,000
LTV= 34.6% ($225,000 divided by $650,000)
This means that the Mortgage, expressed as a percentage of the property is 34.6%. The higher the Mortgage-to-value ratio, the greater the lending risk because the protective equity declines as the LTV increases.
Example: A single-family home with 4 bedrooms and 2,5 baths is valued at $425,000. If we are making a 70% LTV, the Mortgage is $297,500. ($425,000 X .70 = $297,500) The difference between the value of the property and the Mortgage is $127,500. This is referred to as protective equity or equity cushion.
In order for you to make an informed decision, you should require the following in your package:
Mortgage Summary of the Trust Deed Investment
Notarized Assignment of Deed of Trust to you
Personal Guarantee from borrower
Title Report for the title company
Lender Title Insurance ALTA Policy
Homeowner insurance with you added as the additional insurance
Mortgage Application of the borrower
Credit Report of the borrower
Appraisal from independent, certified appraiser or a CMA or BPO
Mortgage Serving Agreement
When you are ready to invest, call us or contact us below. Let us know the way that you take title to your investments and how much you are prepared to invest. You may hold title as an individual, family trust, partnership, corporation, a corporate pension plan, IRA, etc.
You can choose to have your interest paid to you monthly, quarterly, or compounded monthly, whichever meets your needs. Because of the nature of this investment there are some conditions that have to be met: Minimum investment of $50,000; additional installments at $10,000 minimum. There are many requirements to meet to become a qualified investor. Please contact us our your investment advisor to discuss the qualifications. This is not an offer to invest; the investment offer is only made through the offering memorandum and to qualified investors.
Give us a call at 623-582-4444. Or fill in the form below and we will contact you ASAP.