Investor Frequently Asked Questions
- Joint venture and corresponding profit participation options.
- One to two year terms.
- Investments are secured by the collateral – which is the property itself.
- Consistent monthly cash flow returns options or profit upon payoff splits.
- By investing in a Trust Deed, you become the lender on a mortgage secured by a California property.
- Your name will be recorded with the County as the beneficiary of the Trust Deed.
- Each month, the borrower sends the mortgage payments for processing, and we then forward your proceeds to you.
- Read the official California Bureau of Real Estate publication “Trust Deed Investments – What You Should Know!!”
- Joint ventures generally means the private investor puts up a certain amount of capital needed to acquire, renovate and sell a particular residential asset. It’s usually the difference between what the first lien holder is willing to lend and the amount needed for the project to complete. The profits are then split at a certain percentage or a fixed amount of payoff is negotiated prior depending on investor preference and project flexibility.
Trust Deeds and Joint Ventures are a compelling alternative fixed-income investment which provide attractive yields and passive monthly income as part of a risk-averse strategy or provide the opportunity for greater returns by participating in a ‘flip.’.
You instruct us how you want to be vested. Our loan documents including our note and deed of trust will feature your vesting. We do not operate loan pools or LLCs to fund our loans.
You will wire your funds directly to the escrow or insuring title company.
It depends on the offerings available. There is no set minimum. Joint Ventures generally require in excess of $300,000.
Our investment platform generally yields 8.5% to 11% depending on the type of collateral and project scope.
The financial crash of 2007 wiped out all subprime and ALT-A lenders. But even the biggest and strongest banks suffered huge losses. Consequently, banks are still shying away from funding mortgages – even today. The disappearance of many lending institutions along with the reluctance by the “surviving” banks to engage has left a huge void in the marketplace. Many strong borrowers and developers with substantial equity in their properties simply cannot obtain financing anymore. Private investments address that need as opposed to federal funds and instead, we work with high net worth individuals to lend these on our projects as a method of providing interest producing opportunities not available at traditional banking institutions.
Developers need to bridge a gap in time or financing not offered by traditional lenders and generally rely on private investor funds to avoid underwriting hassles, delayed closings and be able to execute with speed, flexibility and reliability. For the quick closings and relatively easy access to capital, developers are willing to pay a premium since they understand they will not be holding the high priced loan for extended periods of time – as they will ‘flip’ the property for a profit in a few months to a year depending on the size and scope of the project.
The properties that secure the investment are located mostly in Southern California – primarily in West Los Angeles, Hollywood Hills & Beverly Hills. 360 Capital Ventures has evaluated over 5,000 properties in Southern California in its history and is very experienced in valuing properties in this geographical area. Typically we avoid areas that are too remote, rural or not established as the marketing time for resale on those properties is greatly extended and therefore a higher risk to investor capital.
We provide comprehensive loan servicing through a licensed full service third party loan servicing company: sending statements to borrowers and investors, collecting payments from borrowers and disbursing earnings to investors, monitoring property taxes and insurance coverage, managing the foreclosure process, completing year-end tax reporting and responding to borrower and investor inquiries. This may be done internally or through an independent servicing company to provide an added layer of transparency.
In trust deed investing and joint ventures, your principle is not available for withdrawal until the loan pays off or upon the end-user point of sale exit (property sale).
IRA, SEP IRA and Pension Plans are accepted.
- Complete your initial Trust Deed investing research, including reading the California Bureau of Real Estate publication “Trust Deed Investing – What You Should Know” and any other personal research you may feel necessary.
- Call us to discuss an investment structure appropriate for you.
- You wire your funds directly to the insuring Title Company on the appropriate day.
- After the loan funds and records, your loan servicing account will be activated, your interest due at closing check is mailed, and we will distribute your earnings once per month via check or ACH. You are now on your way to building a Real Estate investment portfolio!