Trust Deed Investments
TRUST DEED INVESTMENTS
Since Wilshire’s inception, loans have been arranged by Wilshire and the individual promissory notes and deeds of trust that secure those notes have been held by our investors. Trust deeds create a security interest in real estate for the repayment of loans. Like senior mortgages, first trust deeds enjoy a priority position over other encumbrances on the property and Wilshire’s trust deeds have conservative Loan-to-Value (LTV) ratios – resulting in a protective equity cushion for our investors. Investors also have the ability to self-select those trust deeds in which they would like to invest. As a result, investments in Wilshire trust deeds provide investors with the opportunity to earn 7% to 9% annualized returns with a cushion to help preserve the investor’s principal investment against market fluctuations or potential borrower defaults.
Trust Deed Investment Details
|Investment:||Bridge loans (i.e. short term loans) secured by first deeds of trust and mortgages against real property.|
|Investment Objective:||Stable Income and Principal ProtectionTM.
Consistent, risk-adjusted returns with principal protection.
|Load Fees & Commissions:||None|
|Investor Suitability:||Individuals, trusts and qualified retirement accounts meeting the minimum income or net worth requirements.|
|Target Investor Returns:||7% to 9% annualized returns, paid monthly.|
|Borrower Profile:||Real estate investors requiring bridge financing.|
|Lien Position:||First lien. Deed of trust or mortgage recorded against real property.|
|Target Protective Equity:||35% equity cushion based on a target loan-to-value of approximately 65%.|
|Target Loan Term:||Generally 6 to 36 months.|
|Target Loan Size:||$100,000 to $3,000,000|
|Amortization:||Interest only with a balloon payment at maturity.|
|Repayment Strategy:||Sale or refinance of the subject property.|
Wilshire makes real estate loans secured by deeds of trust on residential, multifamily, retail and commercial property located throughout California. The loans are arranged by Wilshire and the notes and deeds of trust are held by our investors. The minimum investment is $50,000 for individuals, trusts and qualified retirement accounts.
We recommend that all investors become familiar with trust deed investments prior to investing. Among other materials, the California Department of Real Estate has published a booklet on trust deed investing which may be located at: CDRE Trust Deed Booklet
* ADDITIONAL DISCLOSURES:
ADDITIONAL DISCLOSURES FOR TRUST DEED AND MORTGAGE INVESTMENTS:
The information contained on this Website (the “Overview”) is not an offer to sell or the solicitation of an offer to purchase trust deed or mortgage investments (individually and collectively, the “Loans”). The purpose of this Overview is to provide an overview of one or more Loans and its private placement. Persons interested in learning about one or more Loans and their private placement will be provided with the Private Placement Memorandum (inclusive of exhibits thereto and any supplements, the “Memorandum”) prepared by Wilshire Finance Partners, Inc. (“Wilshire”), which provides a description of the particular Loans, the terms of the private placement, a discussion of risk factors, a subscription agreement and other information related to an investment in one or more Loans. To the extent that there is any inconsistency between the information provided in this Overview and the Memorandum and its accompanying exhibits, the Memorandum and its accompanying exhibits shall control. This Overview and the Memorandum contain certain forward-looking statements regarding an investment in the Loans. The forward-looking statements are based on current expectations that involve numerous risks and uncertainties which are difficult or impossible to predict accurately and many of which are beyond the control of Wilshire’s management, including, but not limited to, national and international economic conditions, changes in legislation, and other factors that can disrupt economic stability. Although Wilshire believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements, the inclusion of such information should not be regarded as a representation by Wilshire, any placement agent, or any other person, that the respective objectives and strategies of investing in one or more Loans will be achieved. An investment in any Loans may be made solely by accredited investors (which for natural persons, are investors who meet certain minimum annual income or net worth threshold), who are provided with the Memorandum and who complete, execute and deliver the subscription documents included therein. Loans are securities and each of the Loans are being offered in reliance on an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), provided by Regulation D, Rule 506(c), and are not required to comply with specific disclosure requirements that apply to securities registered under the Securities Act. Neither the Securities Exchange Commission nor any state securities regulator or agency has passed upon the merits of or given its approval to the securities, the terms of either offering, or the accuracy or completeness of any offering materials. As securities offered in an exempt transaction, each of the Loans are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell the Loans. Past performance is not indicative of future results. Investing in Loans involves substantial risk, including loss of investment, and is not suitable for all investors. Loans made by Wilshire Finance Partners, Inc., Bureau of Real Estate Broker’s License number 01523207. Loans made by Wilshire Finance Partners, Inc. outside California will be made pursuant to licenses, authorizations or exemptions in each other state.