What Should I Know If My Trust Deed Investment is fractionalized And Should I Care?
- Trust Deed Investing
If you find out that your deed of trust investing
is fractionalized, but you don’t know what that means, don’t be alarmed. When you start the deed of trust
investing procedure, it
will be secured by one of the following: a whole (one lender/note holder) or a fractionalized (more than one lender/note holder) deed of trust. It very important to understand there they are not the same, and in fact, each variation is subject to many different regulations. Exhausting, but you can get through this!
What Should I Know If My Trust Deed Investment is fractionalized
Taking into account the fractionalized promissory notes and deed of trust, these particular lenders are subject to regulation by the DRE (Real Estate Law, or multi-lender law) and the DOC (Securities Law). This law enforces restrictions you should definitely know about before you begin your trust deed investing, such as the mortgage loan broker must service your loan and have a written agreement with you and no more than ten lenders at a time on a single investment.
Also, it should be noted as it is very important to know that if your mortgage loan broker negotiates your trust deed investing
, you will receive a lender/purchaser disclosure statement that will identify the mortgage loan broker and representatives, the amount and terms of the loan, servicing arrangements and information about the borrower.
Yes! This is a lot of information about trust deed investing, but the more you immerse yourself in it, the easier it is to understand. Having a great understanding and a fantastic mortgage loan broker is important to having the best trust deed investing experience possible.
Just learn as much as you possibly can about trust deed investing. It will stop any confusion in its tracks and it will help you as you navigate your way through deed of trust investing with your mortgage loan broker who will act like your partner through the procedure.
- Big Daddy Dennis Hard Money Lender
Arizona Hard Money
Level 4 Funding LLC
23335 N 18th Drive Suite 120
Phoenix AZ 85027