Trust Deed Investing

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Trust Deed Investing

• How to earn double-digit returns while reducing
  your risk through portfolio management.

2
Are we heading into a bull or bear market?

• What if it didnt matter?

3
Traditional investing focuses onStocks Bonds
alone
The performance of both depend heavily on Market
Trends
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Maximize your Return, Minimize your Risk.
Use correct asset allocation in your portfolio
Private equity, venture capital, speculative
stocks and stock options, commodities, futures
and speculative mutual funds
Growth small capitalization stocks, non-bank
grade bonds, variable annuities, growth oriented
mutual funds
Real Estate notes, money-market funds,
certificates of deposit, bank grade bonds, U.S.
Treasury securities, blue chip stock and bond
mutual funds.
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Common Mistakes in Managing Your Portfolio
Ineffectively managing market risk by not
diversifying into investment vehicles outside of
the market.
Unrealized and unearned profit due to a narrow
Risk versus Reward ratio.
Excessive risk taken for the expected return.
Income producing investments are under utilized.
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What is Trust Deed Investing, and Where does it
fit into my portfolio?
Trust deed investing is very similar to a bank
writing a mortgage.
Except, You are now the bank. You receive the
monthly income. You have a lien against the land
or project, until your principal and your stated
return is paid in full.
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How do I participate?

• Partner with a firm, like Stallion Funding, who
• Doesnt charge any fees to investors
• That will do all of the work for you
• Gives you the full return of the notes
  interest rate
• (averaging 14)
• Professionally manages your investment

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What is the standard structure?
The standard investment opportunity consists of a
note and deed of trust in the 1st lien position
that will encumber investment property owned by
the borrower. The standard terms of the note are
as follows

• One year maturity
• Monthly interest-only payments
• 14 interest rate
• 70 loan to value (50 loan to value for land/
  lots)
• Construction funds are held in escrow
• Personal Guarantee from Borrower or 3rd Party

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What does 70 loan to value mean?
Stallion Funding will lend up to 70 loan to
value, using the as-is, after repaired, or after
completed value. That means that for every dollar
of value that exists or that is created through
construction, the investor is only loaning 70
cents.   This structure allows the investors
principal to have a buffer of protection against
loss. Furthermore, the value we are using is of a
conservative nature, established by our site
visitation team which includes a licensed
appraiser.
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What are the advantages?

• High Yield on Investment 14 Return
• Collateral - Invested capital is secured by real
  estate with an appraisal, title policy, recorded
  lien, and hazard insurance.
• Minimal Management All underwriting, servicing,
  and, if necessary, foreclosures are handled by
  highly experienced professionals.
• Monthly Income Interest payments are due every
  month
• Diversification Investing directly in real
  estate diversifies portfolios that are typically
  heavy in stocks and corporate or municipal debt

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What are the risks?

• All investments involve risk. The risk of a real
  estate note is default. However, the risk of loss
  is a function of recovery i.e., foreclosure and
  subsequent sale.
• Default risk is mitigated by strict underwriting
  and insisting on at least a 30 equity cushion in
  every loan.
• Other risks include a drastic change in market
  conditions and the length of time it takes to
  recover a property and liquidate it.

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In Conclusion

• The advantage of investing in real estate with
  Stallion Funding is the ability to easily
  participate in tangible, controlled projects
  while earning a stable superior rate of return
  with a secured position.
•  
• The structure is set to mitigate risk, supervise
  construction and to exit the project with
  predictability.
•  
• Borrowers and developers use Stallion Funding to
  add value to their project we are ready to add
  that same value to your portfolio.

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How do you find out if Trust Deed Investing is
right for you?
Everyones situation is different. You should
consult with an investment professional to
evaluate the appropriateness of real estate as a
portion of your portfolio.

• David Disraeli is a Certified Financial Planner
  
• and has been in financial services for 22
  years. He is also founder of Zisto.com, an
  online trading software company, and Transition
  Planning Group, a non profit consulting firm.