Private Lending Investments

Investor’s Source trust deed investments are single lender loans (in contrast to pooled funds) made on non-owner occupied real estate where you, the lender, receive the Promissory Note and Deed of Trust. The investment advantages are numerous:

  • A fixed rate of return that can be counted on
  • Collateral is generally a first mortgage
  • Short term (6 -24 months) so your money stays liquid
  • Low minimum investment - $5000 and up, dependent upon specific loan requirements
  • The due diligence we perform to help weed out the riskier loans
  • A straightforward lending process (see “The Lending Process”)
  • Loans can be made directly from your qualified retirement account

The value-added provided by The Investor’s Source LLC starts with the due diligence we do on both the borrower(s) and the property/deal to ensure that the loan has the highest probability of making its payments and paying off! Among the elements of our screening process are:

  1. Pulling credit reports
  2. Running MLS comps and tax records to ascertain value prior to the appraisal to help weed out bad deals early in the process
  3. Requiring personal financial statements, supporting documentation and a full loan application
  4. Always conducting a property visit
  5. Meeting with and “feeling out” the borrowers
  6. Running a thorough “deal analysis” to calculate the deal strength
  7. Almost always requiring an appraisal
  8. Presenting all of these and more to our lenders in an easy to read report to simplify your investing decision

In addition, we prepare all loan documents and provide free loan servicing which includes tracking, collecting and forwarding payments and late payments, ensuring that property taxes are paid and property insurance is kept in force, calculating and issuing payoff amounts, and preparing end of year 1098s and 1096s.