Company News

Where to invest your money in 2018

December 29th, 2017 5:17 PM by Andrew Liu, President NMLS#249736

Most economists have predicted that economy will continue to do well next year, real estate value would mostly like to continue to rise as the inventory is still very low specially in the San Francisco bay (According to Santa Clara Association of Realtors, areas that the association covers including San Jose, Sunnyvale, Mountain view, Palo Alto, San Mateo etc that is almost half of the San Francisco bay area, there are only 8 houses for sale that are listed price below $500,000)

Many investors have tried to invest in real estate. However, because of the low inventory, they have often lost out to higher bids.  It also become questionable whether it would be wise of over bidding on properties.

However, money in the bank provides literate no returns. A great alternative is to invest in trust deeds.

These notes would provide you with yield rate of 5% to 10% depending upon the risk level you are willing to undertaken.  A typically borrower, that you would lend money to, would put down minimum 30% or more.  Therefore, the investors risk has been minimized to only 70% or lower of the purchase price.  What if the borrower does not pay the monthly mortgage? Since the trust deed is tired up with the property, the property can be foreclosed to get investor’s money back.

We have been working with many borrowers who are developers or contractors and they flip properties, sometimes they would need fast money to acquire or renovate properties.  We just did a loan for a borrower who owns a triplex in San Francisco valued at $1.2 million free and clear. Yes, he needs about $200,000(loan to value ratio at 16%)  to complete a renovation project on the property, we found an investor who fund the loan and closed it in two weeks
Posted in:real estate investment and tagged: investment
Posted by Andrew Liu, President NMLS#249736 on December 29th, 2017 5:17 PM

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