I am currently accessing the idea of parking a large portion of capital into trust deeds in my investment portifolio.
Any thoughts or experiences with this?
I reside in California. I have narrowed it down to two companies:
The Norris Group - A well established investment firm www.thenorrisgroup.com
Ampez Rehab Investments - a smaller investment firm yet with higher more lucrative returns. www.investfresno.org
Any knowledge of these two? Any info would be wonderful!
Invest Fresno is obviously a fractional investment in Trust Deeds, the only problem with companies like this is how many months a year does your money work for? 14% looks good on paper but if the project ends after 8 months and it is the only project that money is invested in that year then your yield is 9.33%
Now The Norris Group say’s 8 years for 9% but if you really own the note you should be able to sell it in 6 months or 6 years for cash if necessary. I think tying your money up for 8 years is just fine if it’s managed correctly and applied into a 8 year Trust Deed note, but if this company is actually moving your money from note to note then your actual yearly yield could be significantly less than 9%.
Now if you notice The Norris Group also has a 12% / 1 year note but there again they state “No Prepayment Penalty” so if your money is loaned out and it’s repaid in 9 months and can not be placed again that year your yield is 9%. Even less if it’s paid off in 6 months and can not be re-placed in another TD that year.
You kind of need to be careful what your doing and whether you hold the note or it’s held in trust could be a factor.
We buy trust deeds from credit unions.