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.

Trust Deed Investments

The trust deed is what will secure the repayment of funds that are owed according to the conditions of the note, and will then become a lien on the property.

Speak to qualified professionals, and dont be afraid to ask questions, or rethink your decisions before making an investment. Remember, only through asking questions will you learn all the facts of purchasing a trust deed. However, despite their differences, each policy works to insure some the following (Note: The list below is only a small sample of the insurance provided by these two policies): The deed of trust that is insured is recognized as a valid an enforceable lien. However, despite their differences, each policy works to insure some the following (Note: The list below is only a small sample of the insurance provided by these two policies): The deed of trust that is insured is recognized as a valid an enforceable lien. Every investor is provided with a loan summary that supplies information in regards to:Coppercrest Funding gives support to their investors, and assists them through every stage of the loan, which includes the documentation, servicing and loan management.

Routine inspection reports of the construction site are prepared by an in-house inspector.
Furthermore, the investor and the MLB need to arrange for a third party to take part in loan servicing. Take the time to research everything you can about trust deed investments. 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. BorrowersAnother important aspect of the underwriting process is finding out how the borrower intends to refinance the loan in regard to the loan terms that have been specified in the promissory note. Chapter 6 - Loan Underwriting The underwriting discipline of the lenders is one of the single most important elements when investing in a trust deed. Furthermore, deeds of trust are safe investments because borrowers are generally a good risk to take.

Always remember, although trust deed investments are one of the safer investment risks you can take, and have the potential to provide you with high return, ultimately the risk is yours.
Tax Liens Tax liens have priority over deeds of trust. As far as monetary is concerned, the defaults include are as follows: _ Nonpayment of a balloon payment (when all the payment is due at one time)_ Advancements for each provision of the trust deed in regards to insurance or taxes. Therefore, in order to obtain this priority, this needs to be verified before the closing of escrow. While some loans can have a 15 year term, many have a three year term or less.