Investor Questions & Answers

Q: How long has Consolidated Mortgage been in business?
A: Consolidated Mortgage has been in business for nearly thirty years. Our experienced staff is here to serve the needs of Borrowers and Investors with the highest quality loans and investment opportunities in the industry.

Q: What is the minimum investment?
A: The minimum investment is $10,000 per loan.

Q: What is the timeframe on most loans?
A: Loans are generally short-term (9 to 18 months).

Q: What is the average return paid to investors?
A: The average interest rate on loans originated by Consolidated Mortgage are between 10% and 16%.

Q: What is a Trust Deed investment?
A: A Trust Deed, also known as a "Deed of Trust", is a document recorded on a specific property or group of properties with the county recorder's office, encumbering the property(s) with a loan. A Deed of Trust is the document that secures the collateral against the Promissory Note. An Investor, or a group of Investors, may fund a loan on real property (real estate). Upon execution of the documents, the Investor will then own all or part of the loan and will receive interest according to their prorata portion on the loan. Typical Trust Deed investments will yield an Investor between 10% and 16% annualized, distributed on a monthly basis until the loan is paid in full. Loans do not generally carry a pre-payment penalty.

Q: What are the benefits of investing in Trust Deeds?
A: There are several benefits to investing in Trust Deeds. First, the security of the investment is real property (real estate). Unlike stocks, commodities or other volatile investment vehicles, Trust Deed investments are secured by real estate. The next benefit of investing in Trust Deeds is cash-flow and the return on your investment which is typically at a higher yield than most traditional investments, and is pre-determined when the loan records.

Q: How is the risk managed on Trust Deeds at Consolidated Mortgage?
A: This is important to understand. At Consolidated Mortgage, loan origination and underwriting is subject to thorough examination and analysis before loans are underwritten and offered to Investors. Each loan is reviewed for project viability, Borrower equity/collateral, personal guaranty, preferable Borrowers, and source of repayment. We also manage risk by attaining equity cushions through loan-to-value ratios.

Q: What is the process if a Borrower does not pay?
A: All Borrowers receive payment coupons for the duration of each loan to assist them with an on-time payment schedule. Consolidated Mortgage proactively communicates with the Borrower should a payment be late. If the Borrower fails to make a payment within reasonable proximity of its due date, a Notice of Default may be filed initiating the preliminary steps of foreclosure. If the Borrower fails to bring the loan current and/or pay off the loan in accordance with the terms set forth in the Promissory Note, Consolidated Mortgage may manage the property on behalf of its Investors upon the completion of foreclosure.

Q: Does Consolidated Mortgage require an appraisal on all loans?
A: Most loans come to us with appraisals or sales contracts. We do conduct an appraisal review and scrutinize the appraiser. If we feel that the appraisal is out-dated or the appraised value is miscalculated we may request a secondary appraisal.

Q: If Consolidated Mortgage were to go out of business, what would happen to my investment?
A: As an Investor you are recorded as Beneficiary on the Deed of Trust and Promissory Note. If Consolidated Mortgage were to go out of business your investment would be secured by the property, and Investors will be responsible for servicing the loan.

Q: Why do Borrowers pay the higher interest rate with Consolidated Mortgage?
A: Consolidated Mortgage offers more flexibility to underwrite real estate projects than traditional banking institutions. Although Borrowers may be able to receive traditional financing, in most cases Consolidated Mortgage is able to provide them with short-term financing typically within 15 to 30-days of their loan request based on the value of real property.

Q: What types of loans does Consolidated Mortgage originate?
A: There are three categories of loans that Consolidated Mortgage underwrites and services: land acquisition, development, and construction of residential and commercial real property.

Q: How big are the loans Consolidated Mortgage underwrites?
A: The loans vary in size from $200,000 to $100 million.

Q: What fees am I charged as an Investor?
A: Our Investors do not pay any fees to participate in Trust Deed investments.

Q: When is interest paid?
A: Interest is paid monthly upon receipt of Borrower payments.

Q: When will I receive my monthly payments?
A: Payments are due to Consolidated Mortgage by the 1st of each month and typically carry a 10-day grace period. Once we receive the payment from the Borrower we clear the funds with the bank and distribute the interest payments directly to the Investors.

Q: What happens when a loan pays off?
A: We are required to notify each Investor of the Borrower's final payment, including principal and interest. It is at the discretion of the Investor to reinvest or receive a check for the Investor's principal in the mail.

Q: Does Consolidated Mortgage have the ability to direct deposit my interest payment?
A: For Investor ease and convenience, we recommend that each Investor set up a direct deposit account.

Q: How am I notified of new Trust Deed investments?
A: Per your preference, your assigned Investment Representative will contact you via email, fax or phone when investment opportunities become available.

Q: How do I begin investing with Consolidated Mortgage?
A: There are three options for getting started.

•  Email info@consolidatedmortgage.com and you will be contacted by a Consolidated Mortgage Investment Representative within two business days.

•  View Your Complete Guide to Become a Trust Deed Investor in the Account Set Up section of the website, follow the procedures and mail documentation to:

Consolidated Mortgage
1291 Galleria Drive, Suite 220
Henderson , NV 89014

An Investment Representative will contact you within two business days.

Contact Consolidated Mortgage at 702.739-9090 or 877.739.9094 to speak with an Investment Representative.

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