I ran across this website recently, Pac Equities, Inc. It seems like they do private equity funding – that is, lend money to real estate developers who cannot get funding via conventional means (aka a bank?). I know nothing more about this than what their website told me, but my interest is piqued. It looks like you get a 10% annual return, including all expenses involved. Your investment is secured by “A legally recorded Assignment of Beneficial Interest in a Deed of Trust”, which I guess mean you are one of the primary lienholders on the property. According to them, “Pac Equities? own money, a minimum of 10% of the total loan made to each project, is invested along with your investment.” Anyone out there want to weigh in on this?
The minimum investment is $10,000. They seem some good information on their FAQ, such as the obvious question:
“Q: What if the Economy goes into recession or there is a drop in the Real Estate market?
A: Real Estate market values move slowly, these are short term investments that allow a relatively quick exit. Your Deed of Trust Investment is secured with a high equity position in the real estate project. You are protected with a loan to value ratio of 70%. And remember, over 30 years of experience and knowledge are vested in this real estate project.”
Must research further…