New Paths to Guaranteed Returns

As a licensed real estate Broker and agent here in Las Vegas, I have spent the last six years specializing in finding the best deals for my inventors.   To qualify as a “best deal” these properties have to include both an equity position and positive cash flow.  I have been personally accelerating by purchse of buy and hold homes here in Las Vegas over the last several months as it is my true belief that we have hit the bottom of the market and that home prices will not go down any further. In fact, because of low inventory, prices have risen steadily since early this year.  Prices seem to have bottomed at a low point that was down as much as 75% from highs of about five years ago.   I have acquired 10 properties this year for my long term portfolio and have three more under contract at the time of this writing that are due to close within a month.

Through our many methods of acquiring homes: foreclosures, short sales, trustees’ sales, bulk purchases, and distressed properties we are able to acquire homes at a reasonable discount from today’s retail value.   After fixing and rehabbing the homes, we then place quality renters in the properties and place them with our in-house property management division at VIP Realty Group.  We currently manage over 50 homes and have a full service/full time property manager on site along with several agents that specialize in filling our rental properties.  Over the last two years my team has bought and sold (flipped) over 150 homes in the Las Vegas market, making me one of the busiest investors in this market along with being the 7th busiest buyers’ agent in all of Las Vegas last year.

This prelude outlining our business model brings me to our most recent development:  If you are looking for a comfortable, guaranteed return of 8%, I have an opportunity for you.  As a full time real estate investor with over 30 properties in my personal portfolio, I am no longer able to acquire loans on investment homes through conventional methods (banks/lending institutions).  Most of my homes are privately financed by individuals, like you, who are looking for a good return and safety of their investment.

My lenders are always in first position with a deed of trust placed against the home, and we generally have a loan to value ratio of near 75% of the market value of the home.  We pay interest of 8% on a monthly or quarterly basis (whichever the investor prefers) with a one year initial loan term that can be extended if both parties are willing.  Numerous referrals from satisfied clients are available upon request.   

I specialize in the northwest part of town and know my market extremely well.   The risk for investors is as close to nonexistent as possible as we insure that we have strong positive cash flow on the home as well as a strong equity position. Since we believe that we are already at the bottom of the market, we are also strongly protected against a downward price drop.   In the event that an exit strategy is needed, any of my homes can be easily sold to either an investor looking for a turnkey rental property or an owner occupied buyer that is also looking for a home in great move in condition.

This type of investing is often called “First Trust Deed” investing and puts the investor in a safe position with a guarantee of income each and every month.  This type of investing takes all the hassle out for you because our team rents, manages, and handles any rehabs and maintenance of the home at our cost.  You sit back and enjoy strong returns on a safe, secured investment.  Please contact me directly if you are interested in investing with First Trust Deeds in Las Vegas.

What Is Trust Deed Investing?

You may have heard the term “Trust Deed Investing” or “Trust Deed Investments” bandied about recently is the press as well as private discussions.  Many people, eager to find a source of secure returns that can pay more than the 1-2% currently being offered by savings institutions and Treasury bonds have turned to trust deeds.  

Trust deeds are actually very similar to conventional residential mortgages, with a few key differences.  First, with a trust deed investment, the investor is the “bank.”  They loan money to a real estate professional for a particular real estate acquisition, and the borrower makes monthly payments to them for the duration, or term, of the loan...just like a conventional mortgage.  Trust deeds have locked-in rates of return, terms, and pre-payment details specified in the contract.

There are a few differences, however, between conventional mortgages and trust deed investments.  First, the typical borrower in a trust deed investment is not an owner occupant of a property, but rather a real estate professional looking to acquire an income property.  Many of these properties are purchased by the professional, renovated, and then refinanced or sold at the end of the trust deed term.  Second, trust deeds typically pay a much higher rate of return to the investor than banks charge on a regular residential mortgage.  Mortgage rates at the time of writing stand right around 4%, where trust deed investments are paying between 7-9%.  Last, trust deeds require a higher percentage of equity in the property than a mortgage from a bank.  Banks typically require owner-occupant buyers to put anywhere from 3%-10% down on a property.  This means the bank will finance between 90-97% of what the home is currently worth (90-97% LTV.)  With a trust deed investment, the borrower is typically only allowed to borrow between 65%-80% of what the property is worth. (65%-80% LTV or ARV.)  This larger equity spread provides greater protection for the investor in trust deeds.

Most trust deeds are negotiated by trust deed brokers.  These brokers act as connectors between investors who want to lend money and borrowers who need money for their projects.  The brokers pre-screen the borrowers and also handle all the necessary paperwork involved in the transaction.

Security

Trust deeds are generally viewed as a very secure form of investment for several resons. First, most trust deed brokers limit the loan amount to between 65% - 80% of the after repair value (ARV) of the property in question. This ensures that, in the case of default by the borrower, the property could be sold for more than the amount of the loan and the funds repaid to the investor. Second, the investor becomes the first position lien holder on the property and, as such, his investment is secured by the property itself.

One aspect of trust deed investing that does pose a risk to the investor and often scares potential investors away is the lack of control the investor has over who is borrowing the funds.  With typical broker facilitated trust deed investments, the broker screens the potential borrower and the investor has to trust that their decision and risk assessment is accurate.  We operate a little differently in that regard.  This is because we only broker trust deeds for our own properties. The investor knows that their funds will be going to purchase Team Plantone properties and we are happy to provide a long and detailed record of our years of success in the residential rehab industry in Las Vegas. This is important because it gives the investor an added layer of security. Not only do they know that the loan to value (LTV) ratio on the loan they provide will be strong enough to insure the security of their funds, they have the added peace of mind of knowing that Team Plantone has completed almost 200 rehab-to-rent projects in the last three years and has never defaulted on a single payment.  (If you are interested in learning more, see the testimonials page on our website: www.teamplantone.com)  In addition to increased security, private brokering provides an added cost savings as well.  Since we are only brokering for our own projects, we are able to provide the highest returns possible to our investors without those returns being cut by Brokers Premiums or other fees.

High yield trust deed investments are available to private individuals, corporations, non-profits, pension plans, 401Ks, retirement funds, IRAs, Roth IRAs, Self-Directed IRAs and SEP accounts. If you are interested in learning more about trust deed investments, the yield and secuity they provide, investment minimums and more please contact Glenn Plantone directly at (702) 656-3264 xt: 203