Before You Invest

Whether you are a seasoned trust deed investor or you are considering your first trust deed investment, there are critical considerations to make in ascertaining that the investment is right for you, such as:

  • Does the borrower have experience with this type of property?
  • Does the borrower have adequate cash reserves to handle the property/loan?
  • Does the property have sufficient equity so that the loan is protected to your degree of comfort?
  • Is the property in a location that you are comfortable with?
  • What is Anchor's experience as an underwriter?
  • What is Anchor's experience as a loan servicing agent?
  • If the loan were to default, can you "weather the storm"?

There are seven essential elements to understand regarding trust deed investments:

        1.  Market value and equity in the property and the security of the loan
        2.  Borrower’s financial standing and creditworthiness
        3.  Knowledge, experience and integrity of the Mortgage Loan Broker through whom the transaction is conducted
        4.  Escrow process involving the funding of the loan or the purchase of the notes
        5.  Documents and instruments describing, evidencing, and securing the loan
        6.  Loan servicing provisions, authority and compensation
        7.  Recovering your investment when the borrower fails to pay

Investment Risk

The primary investment risks to the investor involve a borrower's ability to repay a loan, which can be affected by:

  • Fluctuating market conditions and real estate values
  • Effects of recession
  • Substantial fluctuations in interest rates
  • Bankruptcy
  • Natural disasters or environmental concerns
  • Effects of governmental legislation
          Investments in Trust Deeds involve risk.  Prior to investing, investors should review Trust Deed Investments - What You Should Know!! and the Summary of Risk Factors.  These documents, including other forms, are available for download on the Investor Documents page.