Investor Relations

Many Investor Choices

Consolidated Mortgage believes that Investors should have a choice of the investments in which they participate. Investment accounts are self-directed, meaning Investors select each investment and give written authorization for the use of their funds. In an effort to assist investors in making decisions, upon request Consolidated Mortgage will provide Investors access to Borrower information reviewed prior to approving a loan. This may include a recent appraisal on the property, planned use of funds with cost breakdown, a financial statement, tax returns and a credit report.

Opportunity

Trust Deeds are a promising investment opportunity.

Investors who are looking for an investment with a higher yield should consider an opportunity known as a Trust Deed investment - a financial agreement secured by real estate between Borrowers and Investors.

As a mortgage broker licensed to offer loans to borrowers in various states, Consolidated Mortgage specializes in Trust Deed investments. Specifically, it funds a variety of acquisition, development, and construction phases of commercial and residential projects using private investor funds. Consolidated Mortgage acts as the loan servicing agent which includes, among other items, keeping current and accurate records on all loans and Borrowers, tracking and processing payments, and if necessary, handling foreclosure proceedings.

What is a Trust Deed investment?

A Trust Deed investment is a Promissory Note secured by a Deed of Trust, which encumbers real estate. The Borrower executes a Note payable to the Investor. According to the terms of the Note, the Borrower promises to pay the Investor interest at a certain rate on the money loaned by the Investor, less fees, plus repay the principal amount within the documented time frame.

Secured

Are there further securities when investing in Trust Deeds?

Once the Deed of Trust is executed, it is recorded in the Office of the County Recorder for which the property is located.

The Investor's position is further secured with Consolidated Mortgage's acquisition of Title Insurance. The Borrower's terms of repayment are outlined in the Promissory Note, which establishes the interest rate, monthly payment date, maturity date and default provisions. In the event that the Borrower fails to execute the Promissory Note, Consolidated Mortgage may initiate foreclosure proceedings on behalf of the Investor(s).

Foreclosure may result in Investor ownership of the property through an entity created by Consolidated Mortgage, which can then be sold to recoupe Investor funds. When a loan is recorded for development or construction, Consolidated Mortgage employs a third party known as a Construction Control Company to verify that work has been completed before funds are released to cover expenses for the improvement on the property.

Higher Yield

How can Consolidated Mortgage continually pay out a high interest rate to its Investors?

Consolidated Mortgage offers first and second Trust Deed investments that can yield an average of 10% to 16% per year. Interest rates are established at the beginning of the loan and remain fixed through the duration of the loan term. Consolidated Mortgage's Borrowers make monthly payments which are distributed directly to Investors.

The higher rates of interest paid by Borrowers are usually structured with 12-month terms, unlike traditional 30-year mortgages. Consequently, the incremental cost of paying Consolidated Mortgage rates is only endured for a short period of time, while it allows the Borrower to move forward with its real estate project immediately.

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