FAQs Archive

Q: Do you pay broker commissions?

We always protect our brokers by including the broker fee on our term sheet. The broker fee is listed on settlement statement and brokers are paid at closing.

Q: What is your typical maximum leverage?

Most of our first mortgages max out at 65% of value.

Q: How long does it take to get a term sheet?

We are typically able to provide a term sheet within 24 hours of receiving a submission.

Q: Do you fund construction deals?

While we do not fund ground up construction deals, we do fund value deals deals that require renovations. We can also fund late stage construction projects.

Q: What happens if the borrower files for bankruptcy?

If the borrower files for bankruptcy in a trust deed investment, the trustee typically files a claim in the bankruptcy proceeding to protect the interests of the investors. Depending on the type of bankruptcy filed, there may be a temporary delay in receiving payments, but the trustee will work to ensure that the investors receive their share of the proceeds from the sale of the property. In a Chapter 7 bankruptcy, the property is usually sold to pay off the borrower's debts, and the investors will receive their share of the proceeds. In a Chapter 11 bankruptcy, the borrower may have the opportunity to restructure their debt, and the trustee will work to ensure that the investors receive the payments due to them under the terms of the trust deed. It's important to note that the exact process can vary depending on the specifics of the case and the laws of the state in which the property is located.