How a Trust Deed Works

An investor purchases a $50,000 note originated by Unifund that generates an average annual return of 15% per year and typically pays off within 18 to 24 months. In this example, the investor would fund $50,000 and receive average monthly interest income of $625 per month (net of fees). Compared to the S&P 500, which only returned 3.01% in 2005, with volatile swings throughout the year, Unifund’s investor experienced higher returns and greater stability. Unifund’s underwriters will typically not accept any loans where the combined loan-to-value of all loans exceeds 70%. This is another obvious advantage of Unifund over the stock market: our investments are not over-leveraged. Also, these investments are generally not sensitive to increases in oil prices, whereas profits of the companies that make up the S&P 500 may be sensitive to increases in the price of crude oil.

Trust deeds are typically secured by a private money mortgage on real property. That means your investment is secured by real estate. This kind of security is not available in the stock market. The properties secured by the trust deeds are located throughout the Western United States, including California, Nevada, Arizona, Washington, Utah, New Mexico, Idaho and Oregon.

 

The loans offered by Unifund are secured by recorded trust deeds.  The loans are originated and funded by Unifund before you buy them.  Unifund receives a fee of 1.5% on the average monthly loan principal balance.  This fee covers our cost for servicing the loans so that you receive a check and statement from us monthly.  If a problem does arise, our experienced team of licensed mortgage brokers, attorneys and real estate officers are available to assist you.

 

The majority of trust deeds are secured by entry level and middle-market properties in stable or growing market areas in the Western United States. We tend to invest very conservatively on upper-level and trophy properties where values can dramatically fluctuate. Additionally, we focus on metropolitan areas with recent and continuing appreciation of real estate property values. Keying in on these high profile properties dramatically increases the likelihood that individual investors will achieve and even exceed their investment goals.