First trust deed is a primary lien on a property, ensuring top repayment priority.
At below 60% LTV, it offers a significant equity cushion, enhancing security for lenders Investing in Real Estate First Trust Deed Notes provides a competitive risk-adjusted return, outperforming many other asset classes.
All loans Are Secured By Non-Owner Occupied Single Family Residential And Mixed Use Property.
Invest along with the significant capital of sponsors.
Comparison Of Investment Classes: Class A vs. Class B
Criteria/Investment Class |
Class A Investors |
Class B Investors |
|---|---|---|
Minimum Investment |
$100,000 |
$1,000,000 or more (Management has discretion to accept lower minimum amounts up to $100,000) |
Management Fee |
0.5% of pro-rata share of Assets Under Management |
2.0% of pro-rata share of Assets Under Management |
Prefered Return |
8.5% |
8.5% |
Carry/Profits Allocation to Manager |
100% |
20% |
Net Profits Allocation to Investor |
0% |
80% (Distributed pro-rata among Class B Investors) |
Frequency of Distribution |
Monthly |
Monthly |
Ideal Investor |
Investors who are looking for downside protection, lower fee, or expect moderate fund performance. |
Investors looking for higher profit-sharing in case of significant fund outperformance and are willing to bear a higher fee. |
Performance Implication |
Advantageous if the fund just reaches the preferred return or performs slightly better due to the lower management fee. |
Beneficial if the fund outperforms significantly because of their profit-sharing structure, even after the higher management fee. |
Past performance is not indicative of future results, which may vary materially. A loss of principal may occur.