Whole Loan Investments

A qualified investor can fund orpurchase the entire value of a note. Anchor has various loans available for purchase most of the time.  Like all investments, investing in trust deeds involves risk and investors are advised to familiarize themselves with this risk.  Some of the details of this program include:

  • Investors can purchase individual notes earning a fixed return on their investment

  • Documents are produced assigning the loan to an Investor who then becomes the lender of record

  • Investor's name is recorded as the beneficiary

  • Investor purchases the loan at face value

  • Duration of the investment is the loan term of one year (average loan payoff period is currently 6 - 8 months)

  • Anchor handles all loan servicing for Investor

  • Interest paid monthly by borrower is collected by Anchor and remitted to the Investor, less applicable loan servicing fees

Investor Qualifications

To be eligible to invest in whole loan investments with Anchor Loans:

  • The loan amount cannot exceed 10% of an Investor's net worth (exclusive of home, furnishings and automobiles) OR

  • The loan amount must be less than 10% of an Investor's adjusted gross income for federal tax purposes

Types of Entities that can invest: Individuals, Self-Directed IRAs, Family Trusts, Corporations, Limited Partnership, General Partnership,Institutional Lenders, Mortgage Partnership Pools

Whole Note Investment Cycle

  1. New Investor Packet: Investor to review and return required forms and agreement
  2. Loan Review & Selection: Review potential loans; select loan for investment and notify Anchor
  3. Investor Loan Package & Funds Received: After Anchor funds loan, Investor is sent loan package; Investor returns required documents with funds; monthly interest begins to accrue
  4. Monthly Payments: Investor's payments begin on the first of the month following loan funding
  5. Loan Payoff: After borrower pays off the loan, Investor's principal plus any interest owed is returned

If you have any questions regarding your particular situation, please call Investor Relations at 310-395-0010.