Risk vs Return - Investor
Typical Investment Yields Range From 8.0% to 11.0%
Risks Associated with Trust Deeds Investments
Risks associated with Trust Deed Investments that Investors should be aware of:
- Trust Deed Investments are not insured by the FDIC or any other government agency. In Addition, Future Value Funding, its principals, and associates can not guarantee the success of the investment. These investments involve certain risks and are suitable for those people with adequate funds to maintain a comfortable lifestyle after investing, without the need for immediate liquidity of said funds.
- The value of property may be estimated by an appraiser, or other reputable organization, but please remember that the opinion of the value is based solely upon available current data, and based upon a specific date. There is no assurance that this estimate will reflect a fair market value upon the final sale. General and local economic conditions are subject to change prior to the investment repayment. Case and point, is the ongoing recession that the real estate and construction industry finds itself working through currently.
- Although the investor makes the final investment decision, the success of the investment will depend, in part, upon the experience and quality of the management of the mortgage banker / broker. Make sure you understand all aspects of your investment to include; Risk vs Return, Term of the loan, disbursement procedures, and subsequent servicing by the broker. Future Value Funding services all of its loans, and provides inspections prior to disbursements on construction loans.
- The borrower’s ability to repay the loan will depend upon the borrower’s financial conditions which could change over time. In most cases, especially with construction loans, we will typically require an interest reserve account, conditionally financed through the loan, which helps insure the ability to pay investor interest payments throughout the loan period.
- There are general risks associated with all real estate investments, including, but not limited to, national or local economic conditions. Some variables include; neighborhood values due to foreclosures, changes in interest rates, real estate taxes, the supply and demand for certain types of property, and the ability of the borrower to obtain necessary financing. Government and local regulations can create unanticipated delays, as do, acts of nature in some cases.
- Default by the borrower could interrupt your monthly payments. Under extreme cases, it may be necessary to instruct Future Value Funding,Inc to foreclose or take other actions to protect your investment. It is possible that the total amount recovered upon foreclosure can be less than the amount of your original principle investment. This may result in the loss of capital to the investor. We recommend diversifying your investment capital, if possible, throughout multiple loans products.
- If a borrower files a reorganization or bankruptcy, the foreclosure process could be stalled. Trust deed investors could incur significant legal fees and costs in attempting to obtain relief from the automatic freeze on collection proceedings provided by the Bankruptcy Code. Relief may consist of obtaining court approval to release the property out of the bankruptcy so that the property can be foreclosed upon. Furthermore, the court could modify the terms of the loan by extending the due date, changing the interest rate and/or payment structure, or causing the priority of the loan to be subordinated to a bankruptcy court-approved financing plan.
- Investments offered through Future Value Funding,Inc. are neither liquid, nor transferable and involve some risk, including possible loss of principal.
- This web site constitutes neither an offer to sell nor a solicitation of an offer for any investment. All investor offers are made, and subject to, availability after Future Value Funding Inc. has reviewed the borrower’s request, and then created an offering.