Chapter 4 - Typical Borrowers

There are a number of reasons why borrowers require private money loans. Some of these reasons could be, but are not limited to the following:

Borrowers that need money quickly

Borrowers who have lost bank loans because of excessive conditions, declines or any other reason

Borrowers who do not want to waste their time undergoing the hassle of processing an institutional or bank loan

Borrowers interested in ground up construction

Borrowers who need a loan that has flexible conditions

Borrower has the opportunity to gain investment by utilizing the equity in their real estate.

Borrower is a non-profit organization (ex: churches, charities, etc.)

Borrower is in unfortunate circumstances that make it difficult for them to obtain bank assistance, circumstances such as:
? Poor credit
? Bankruptcy
? Irrevocable Trusts, etc.
? Tax Liens (estate, federal and state taxes, etc.)
? Other Liens (property taxes, judgment liens, etc.)
? Receivership or Foreclosure
? Property held in Trusts, Probate, etc.
? Divorce
? Unemployment
? Medical emergencies
? Etc.

Borrower has property with certain characteristics that make it difficult for them to obtain a loan from the bank, characteristics such as:
? A high vacancy-loan is required to increase the occupancy of the income property
? Partial construction of building or near completion
? Seismic retrofitting
? Property improvements
? Etc.

We Buy Deeds Of Trust

While most investments are made with the same end in mind, the main difference between each investment type are the strategies and the level or risk involved.

Another reason is the borrower destroyed the property value by removing or demolishing the building(s), or by failing to keep the property in top condition. The more you learn about trust deeds, the more you will discover that this investment offers you a high rate of return at a risk you can afford. There are different construction loans that can be invested in.

An action must be filed in court to reconstruct or restore the lost note.
There are different loan documents that secure an investment. When making a trust deed investment, the deed of trust recorded against the borrowers property title is what secures the lenders investment. While all notes function with the same end in mind, there are different types of notes that can be obtained. A trust deed is used as security for a loan on real property, and the specifics regarding the loan are written in a promissory note. The amount of the title policy premium is based on the amount of money that is being insured by the loan.

Remember, all things being equal, the greater the Loan to Value, the more risky the loan.
) _ Other Liens (property taxes, judgment liens, etc. (Note: Keep in mind that each state may have their own process of foreclosure, so the following information may not apply to your area)1. LTV is the percentage of the loan to the property value. If there is a default on the loan, the loan servicing officer may choose to start foreclosure. That being the case, you may find it in your best interest to first speak with a qualified professional or a mortgage loan broker before you make any commitments with your money. Here are a few of the basic advantages that investing in trust deeds offers you as an investor:1.