A Trust Deed Investment is created when an Investor purchases a Promissory Note and Deed of Trust. At such time, the investor becomes "the bank" and holds a legally negotiable instrument that is secured by real property. The Mortgage Lending process is characterized by the arranging of a loan to a borrower who executed a Promissory Note and Deed of Trust (Trust Deed) secured (recorded against) the real property. The Promissory Note is the borrowers promise to repay the loan, and the Deed of Trust is a security instrument (lien) recorded against the borrower's real estate. Trust Deeds are saleable instruments that are regularly sold as Trust Deed Investments.

How do I get paid on a trust deed investments?

Interest on trust deed investments is typically treated and reported as ordinary income unless the TD is owned in a Self-directed IRA or other retirement account, and in those cases the interest earned will be reported and accounted for differently. Most trust deed investors will receive a 1099 from the loan servicing company around year-end.

How do I handle the income received from a TD investment and report it on my taxes?

Why are the returns on trust deed investments higher than other investments?

The borrowers who apply and accept for private hard money loans are willing to accept and pay the higher interest rates on private money mortgages. Some of these reasons may be because they need the money quickly and cannot wait for a traditional bank or mortgage company to complete the loan. Another reason might be that they are self-employed and the income reflected on their tax returns will not allow them to qualify for a traditional mortgage. Another reason might be that the property is vacant or has extensive deferred maintenance, preventing the property from being unfinanceable by bank standards. At private loan and trust deed investment that has a higher rate does not always mean that the loan is more risky than a comparable mortgage with a lower rate. It may be , but it is not always true. Most trust deed investment loans have much more protective equity cushions and lower loan to values than many other loans that are made to gold-plated borrowers.

Are trust deed investments risky?

Most investments possess some degrees of associated risks and trust deed investments are no different. Many factors influence and effect the risk and return of a trust deed investment. When a private investor purchases a trust deed investment or is involved with the origination, there are many factors to consider and evaluate to assess the risk possibilities and in hopes of minimizing the potential for risk or loss. Trust deed investments are not FDIC insured and it is possible to lose some or all of your principal investment.

How do I choose a good trust deed investment?

The best way to select the least risky and most appropriate trust deed investment is to become an educated trust deed investor. The more you learn and the more due diligence you complete on each trust deed investment you are considering, the better off you will be. Never purchase a trust deed investment based upon the opinion or recommendation of another. It is up to you to protect your own investment capital and it is your responsibility to assess whether the trust deed is a good one that you would like to purchase. Would you buy a car just because someone said it was a good deal? Most private money loan applications and requests are turned down. This means you have to learn how to locate and pick the good ones. Once you learn what are the most important factors and what to look for in a good trust deed investment, you will reduce risk and purchase some winners! Greenview Lending Corporation arranges many loans each month, year in and year out. We see hundreds of loan applications and files each year. We regularly underwrite an arrange loans that become good trust deed investments. We have become pretty adept at locating and creating good trust deed investment opportunities. We can never promise or guarantee that a trust deed investment will not have issues in the future, however, we can go through an underwriting process and analyze accredit and application package to make a well-informed credit decision which hopefully results in the creating of a good paying trust deed investment.

May I purchase trust deed investing using my IRA or similar investment account?

Yes. You may purchase trust deed investments using a Self-directed IRA and other similar retirement or investment vehicles.

Are all Greenview Lending Corporation trust deeds located in California?

Most of the loans we arrange and sell as trust deed investments are secured by properties located in California. It is on rare occasions that we arrange loan on a property located outside of California.

Can I purchase trust deeds recorded only on residential properties?

Yes. Most of the trust deed investments we arrange are recorded on residential, non-owner occupied income properties.

Can I purchase only trust does secured by commercial properties?

Yes. We also arrange loans secured by commercial properties.

How does your company typically work with it's investors?

Greenview Lending Corporation does not fund its loans in advance. When we receive a loan request from a borrower directly or from another loan professional, we put together a preliminary credit package and then we contact our private investors to discuss the details. The loan is underwritten and created together. The loan and its terms are negotiated between us, the investor, loan broker and the borrower. This process seems to work fairly well for us and our private investors.

Who do you work with for escrow?

We know several good escrow companies. However, we typically choose the escrow company that our investors are familiar and most comfortable with.

What title insurance companies do you work with?

We typically use Fidelity National Title or another large and reputable title insurance provider.

What does the typical credit package look like?

Our typical credit package includes a loan application, a copy of the borrowers credit report, a preliminary title report, copies of the leases, a loan purpose letter, income documentation such as bank statements or tax returns, an appraisal or comparable sales, property photos and proof of hazard insurance.

What loan-to-values do you lend to?

Up to 60% LTV for refinances and we can lend up to 65% of ARV on purchase loans.

What are the smallest loans and trust deed investments offered?

We arrange loans as small as $30,000.

Do you offer only 1st position trust deeds?

We offer mostly first position trust deeds. However we also arrange second and on rare occasion third trust deeds.

Do I have to qualify as an investor to invest in trust deeds?

Yes. All investors must meet minimum investments suitability requirements. These requirements are contained here within our website and at the California Department of Real Estate website.

What is the minimum amount of money required to invest in trust deeds?

The minimum amount of money required of an investor to acquire a trust deed is equal to the amount of the trust deed being purchased. We typically do not create fractionalized loans and place more than one investor to on any one loan. If a loan being arranged is $40,000, then the investor will be required to have $40,000 available.

Who handles the servicing and collection of the monthly payments?

Each private investor will choose the loan servicer of his or her choice. Some investors service their own loans and w can suggest some reputable loan servicing companies.

Does Greenview Lending Corporation service each loan?

At this time we are not providing loan servicing.

Does my money go into a pool of money held by other investors or into a fund?

Your money will only be used to purchase one specific trust deed investment. Your money will never be placed into a pool or mortgage fund. Every trust deed investor will wire or deposit his or her investment into an escrow or directly to the Title insurance company when the loan is being created.

Do I get to choose which properties and trust deeds I want to invest in?

Yes. We expect every investor to be involved in the loan origination process and to conduct a thorough due diligence investigation on every file he or she considers. This process provides every investor the opportunity to choose only those loans and trust deed investments they wish to fund and own.

Is my money insured by the FDIC

No. Trust deed investments are not insured by the FDIC.

How do I know trust deed investment will be recorded in first position?

With every trust deed investment you invest with us, you will be issued a Title insurance policy insuring that your trust deed is recorded in the first mortgage lien position.

What if the borrower stops making payments? How do I foreclose?

The note contains the details and procedures regarding a foreclosure procedure. Your loan servicer would handle or recommend a trustee or foreclosure company to assist in beginning a foreclosure procedure.

Do you have references of investors who invest with you now?

Yes. We can provide several references, names and numbers of private investors who regularly buy trust deed investments from us.

Are you licensed to arrange loans and work with private investors and offer trust deed investments?

Greenview Lending Corporation is licensed by The California Department of Real Estate #01855247.

Greenview claims I can earn high annual yields. How is this achieved?

It is reasonable but not guaranteed that you can achieve annual returns on your investment from 10% and up to 40%. Every trust deed investment opportunity is unique and will pay different yields. Please contact jay Green at (714) 747-1912 to learn more about available investment opportunities.

Do you guarantee the protection of my investment principal from potential loss?

No. We do not guarantee that you will not lose any or all of your principal. Trust deed investing involves risk and we cannot predict or guarantee the future performance of any of our trust deeds.