THE GOLDHAMMER TEAM is affiliated with All Western Mortgage – a licensed mortgage company in the state of Nevada. We provide our clients with the opportunity to invest in high-yield, short-term investments secured by Deeds of Trust on real estate. On behalf of our clients, we originate, underwrite, and fund residential & land acquisitions.
With almost 30 years of experience in the real estate investment industry, All Western Mortgage has gained the experience and sophistication essential to operating through changing market conditions while maintaining client confidence and respect. This experience is used to provide clients with opportunities upon which to build their financial futures.
Trust Deed Investments
Investors who seek investments with higher-yield potential should consider an opportunity known as a Trust Deed Investment – a financial agreement between Borrowers and private Investors secured by real property.
A Trust Deed Investment is a Promissory Note secured by a Deed of Trust recorded on real property. The Borrower executes the Note payable to the Investor and promises to pay the Investor a certain interest rate on the loaned money, plus repay the principal amount within a specified time frame. Investors are recorded as beneficiaries to the property in the event the Borrower defaults on the loan obligations, thus losing its claim to the property through foreclosure.
A Promissory Note outlines the borrowers’ terms and obligations to the Investor including, but not limited to, interest rate, payment date, maturity date, and default provisions of the loan.
The Promissory Note is secured by a Deed of Trust recorded against the property on behalf of the Investor that is filed on record with the Office of the County Recorder in the county where the property is located. The Deed of Trust secures the Investor to the property to allow for foreclosure against the Borrower in the event of default of the terms set by the Promissory Note. Foreclosure may result in Investor ownership of the property, which can be sold to attempt to recover Investor funds.
The Investor’s position on the Deed of Trust is also backed by Title Insurance. This protection insures the Investor’s interest in the property against loss due to title defects, liens, or other matters.
Title Insurance protects the investment that is made in real estate by making sure the rights and interest to the property are clear, that transfer of title takes place efficiently and correctly, and that home buyer interests are protected to the maximum degree. Title insurance companies provide services to buyers, sellers, real estate developers, builders, mortgage lenders and others who have an interest in a real estate transfer. Title companies routinely issue two types of policies – “Owners Policy”, which covers the home buyer and is usually paid for by the seller: and “Lenders Policy,” which covers the bank or mortgage holder for the life of the loan and is usually paid by the buyer. Both are issued at the time of purchase for a modest premium in relation to what they insure and are paid through the close of escrow.
Trust Deed Investments can enhance an investment portfolio through their potential to generate higher-yield returns for Investors in the form of monthly income. While all investments involve risk, Trust Deeds offer Investors the opportunity to recoup a portion or all of their original investment, through the sale of the property if the asset is taken back in foreclosure. Borrowers who seek financing from The Goldhammer Team at All Western Mortgage are generally home owners and real estate investors.
Investor Choice
The Goldhammer Team believes that Investors should have multiple choices when participating in real estate investments. All investments are self-directed, requiring Investors to select each investment and personally authorize the use of their funds. In an effort to assist Investors in making those decisions, upon request, All Western Mortgage will provide Investors access to Borrower information that was reviewed by our internal underwriting team prior to loan approval. This may include, but is not limited to, a recent appraisal on the property, planned use of funds with cost breakdown, a financial statement, tax returns, and a credit report.
What are the risks associated with investing in Trust Deeds?
When practicing business in a lending environment, default situations do occur; particularly amidst the credit limitations impacting the present real estate market.
As part of its underwriting process, The Goldhammer Team at All Western Mortgage attempts to determine the feasibility of principal recovery should the Borrower default on a loan. All Western Mortgage does not approve loans without clear exit strategies. The Goldhammer Team is committed to attaining the best possible resolution on behalf of its investors. With our combined experience over the past 30 years we have worked diligently, thru a variety of market conditions, to earn a favorable reputation in our industry. We are confident that Investors will benefit from our vast experience, resources, and the ability to take action on behalf of our Investors.
Borrower default may result in a variety of scenarios including, but not limited to, suspension or discontinuance of monthly interest income for Investors, Borrower bankruptcy, and Investor property ownership through foreclosure. Market conditions at the time of property ownership may result in the inability to sell the property for a significant period of time. Foreclosure expenses and carrying costs associated with property ownership are ultimately the responsibility of the Investor, should foreclosure result. These expenses, as well as the ultimate sale or resolution of the property, may result in a partial or lack of principal return to the Investor.
Investor Benefits
- Diversification: Opportunities include loans for Residential (Purchase and Refinance) and Land Acquisition
- Built-In Equity: Varies per loan, but typical loan amounts range from 50% to 65% of the subject property’s current appraised value. Valuation methodologies include obtaining Broker Price Opinions, Comparable Sales Prices, and independent appraisals.
- Higher Yields: Varies per loan, with interest rates ranging from 12% per annum.
- Monthly Income: Borrower makes monthly interest payments to the Investor in accordance with the loan terms, generally through a third party servicing company.
- Short Terms: Varies per loan, with investment terms ranging from 24 to 60 months. Trust Deeds generally do not carry pre-payment penalties, but are at the discretion of the Investor.
- Investment Options: Investors have a number of methods to choose from, which include investing through non-qualified funds, trusts, IRA/401Ks, pension plans, and LLCs.
Why do Borrowers use The Goldhammer Team for their funding needs?
Speed and flexibility.
With a growing Investor base, All Western Mortgage is capable of raising funds in a short amount of time to finance a variety of real estate projects. As a licensed mortgage broker regulated by the Mortgage Lending Division of the State of Nevada, All Western Mortgage has more flexibility in its loan selection process than traditional banking institutions. With the majority of loans being underwritten for 24 to 60 month terms, borrowers are willing to pay higher rates of interest for short periods of time in order to obtain needed financing, acquiring or developing real estate projects immediately.
Why do Investors want to do business with The Goldhammer Team?
The Goldhammer Team at All Western Mortgage is dedicated to offering the highest quality real estate investment opportunities to its clients, while creating and maintaining a partnership of trust and respect with each Investor. It is our unwavering commitment to these principles that has established our company as a leader in the real estate investment industry.
All Western Mortgage originates, underwrites, and funds loans utilizing Investor capital. We also provide service to builders and developers throughout Nevada.
The Goldhammer Team has acquired not only the experience, but the expertise essential to maintaining Investor confidence and respect. This experience is used to enhance an environment for Investors in which to build their financial future.
Lending Criteria Summary
All Western Mortgage has been originating and underwriting real estate loans for almost three decades. Our experience provides borrowers a reliable lending resource for residential loans. The advantage of borrowing with The Goldhammer Team is our ability to rapidly process and fund a loan with reduced paperwork, unlike conventional lenders. Our loans traditionally range anywhere from $25,000 to $500,000. The majority of our loans are 24 to 60 month term loans with the option to extend on a case by case basis, at the Investor’s discretion.
Types of Loans: Residential or Commercial – Land Acquisition
Bridge Loans: Income producing properties for rehabilitation – Short-term needs while transitioning to a conventional loan
Underwriting
All Western Mortgage generally lends within the following loan-to-value ratio ranges depending upon property type, location and other relevant factors associated with the property:
• Land Acquisition – up to 50% of the appraised value of the land
• Residential – up to 65% of the appraised value of the property
The Goldhammer Team prides itself in knowing and understanding our Borrowers’ needs. We proactively request information not only to better serve our Borrowers, but also to provide our Investors with an overview of the Borrowing Entity and strength of the Guarantor(s).
Documentation Requirements – while each loan varies based on the type of Borrower, the following may be required:
• Detailed description of the loan request
• Exit strategy
• Preliminary Title Report
• Purchase or option agreement for the property
• Documentation for Borrower entity (Articles of Incorporation, Operating Agreement, etc.)
• Current Appraisal or recent comparables of the project
• General liability or hazard insurance
• Current Financial Statements and two most recent tax returns for the Borrower and Guarantor(s)
Interest Rate: Industry standard is at 12%, but may vary by Investor.
Term: Loan terms are generally between 24 to 60 months, Interest Only. Investment properties typically carry a 24-36 month term, while Owner Occupied properties require a minimum 60 month term. Extensions may be offered subject to additional fees and only with Investor approval.
Loan Size: Loan size varies and can range anywhere from $25,000 to $500,000.
Geographic Area: Nevada properties only.
We look forward to partnering with you and helping you build your financial future!
Feel free to contact The Goldhammer Team with any questions you may have before making your Trust Deed investment decision.
License #12643 License #47140
RISKS – As with all types of investments there are inherent risks when investing in Trust Deeds. Money invested through a mortgage broker is not guaranteed to earn any interest or return and is not insured. Before investing, investors will be provided applicable disclosures. Past performance does not guarantee future results or success. All Western Mortgage recommends that investors meet minimum suitability standards to ensure that the investor’s financial conditions and investment goals warrant the risk of the investment. Nevada Mortgage Broker license #204.