Has your investment portfolio been decimated by the rapid decline in the stock market? Many people are facing the prospect of working an additional 5 to 10 years because their retirement accounts or 401K's have been cut in half. Even if the market rebounded 10% per year, it would take most people 13 years or more to get back where they were before March of 2000.

And worst of all, many retired people have seen their monthly income cut in half. Unfortunately, putting your money into CD's or money market accounts paying 3% interest is not the answer. At 3% interest it may take you 30 years or more to rebuild your portfolio.

So, many people are wondering if there is a relatively safe investment alternative that will pay a better rate of return? The answer is, yes! Investing in Deeds of Trust or Mortgage Notes that are secured by real estate can provide you with an investment vehicle that will pay a 15% annual return with minimal risk. Your investment is always secured by the piece of real estate. Best of all, mortgage notes can be utilized in a self directed IRA or 401K.

Investing in Deeds of Trust (as they are called in Arizona or mortgage notes in other parts of the country) provides the stability and safety of owning real estate without the headaches and hassles that tenants can create. Why invest in Phoenix Arizona? Simple, we have one of the fastest appreciating real estate markets in the nation. This provides additional security and profit potential to your investment.

Notes Secured By A Second Deed of Trust:

Purpose:
To achieve an aggressive rate of return for investors, while providing minimal risk.

Investors will provide capital to One Source Mortgage & Investments to buy discounted notes on a second deed of trust. The investment will be secured by a second position lien against a single-family home. Depending on the interest rate negotiated, the investor will be paid between 10% to 12% interest on their money

This resource will allow potential homeowners lacking a sufficient down payment, the opportunity to purchase a single-family home.

Details:
One Source Mortgage & Investments will purchase the original note for 90% of face value. The note will pay an annual interest rate of 12% to 14%. Principal and interest payments are made monthly to the investor. All notes will be considered delinquent after 30 days and the foreclosure process would begin. All notes will have a three-year balloon payment. All payments will be set up through a title company for servicing. The servicing company will be responsible for payment notification.

For the safety of this investment, the foreclosure process on the note would have to be filed before the first lien holder can file their notice of foreclosure. Therefore, the 30 - day delinquency guideline is critical and would be utilized without exception.

Scenario:
A buyer purchases a home priced at $150,000. They qualify for an 80/15/5 mortgage loan. The buyer is putting $7,500 as a down payment. The lender will loan $120,000 as a first lien on the property. The seller will carry a note (held in 2nd position) of $22,500 paid in monthly installments with a balloon payment due in three years. The interest rate on the second note is 12%.

Upon close of escrow, One Source Mortgage & Investments will purchase the note for $20,000 (a 10% discount). The original seller has received a net purchase price of $147,500.

The investor would receive 36 monthly payments (at 10%) of $197.45 with a balloon payment of $22,084 in the 37th month. This will achieve a total return of $29,192 on a $20,000 initial investment, a 15% annual return on investment over a three-year period. ($7,108 in payments + $22,084 balloon payment)

For additional information on this program, please contact us.