May 23, 1994 |
If anyone were watching, the First Pension Corp. disaster might have been headed off as long ago as Aug. 12, 1987. On that day the firm's owners filed notices with a California agency claiming that each of 23 virtually identical real estate investment pools was exempt from regulation as a public securities offering because it was not to be offered to more than 35 sophisticated investors.
June 9, 1991 |
Questions about equity-sharing, "wraparound" loans and the difference between a mortgage and a deed of trust recently arrived in the mail. Journalists and even lenders tend to use the terms mortgage and deed of trust interchangeably. But, asks James Phillips of Los Angeles, "isn't there a difference between the two?" Yes, there is--but not much.
September 21, 1993 |
It's easy to earn up to 15% a year on your money. Or, at least, that's what some seminars and real estate brokers are telling people about investing in trust deeds. The truth, of course, is that some people can earn 15% a year--but only if they really know what they're doing. For most others, investing in trust deeds is probably very risky. Trust deeds are basically three-party legal instruments that are created to secure real estate loans.
April 12, 1987
Southland lenders reported a total of $2,754,948,532 lent on trust deeds in Los Angeles County in February, $1,185,847,142 in Orange County, $1,022,792,095 in San Diego, $447,007,606 in San Bernardino County, and $411,957,475 in Riverside County, according to Ticor Title. In Los Angeles County, money lent to purchase existing property amounted to $1,555,276,522 and refinancing accounted for $3,096,703,290. Construction lending totaled $734,964,371, up slightly from January.
January 9, 1996 |
It's easy to earn up to 16% a year on your money. That's what some seminars and real estate brokers are telling people about investing in trust deeds. And while some investors are indeed realizing such bountiful returns, trust deeds are a risky endeavor for the average person. There's the promise of a nice return, but there's also the risk of the investment being wiped out by declining property values or a borrower who just doesn't pay.
June 28, 1992 |
For many years investing in second trust deeds has been a popular means for individual investors to increase their return over that obtainable in alternative investment opportunities. For smaller investors to participate in the second trust deed market, typically the trust deed has been divided and sold in fractional shares, often with the seller of the trust deed enhancing the investment by issuing its own guarantee to the investor to further collateralize the trust deed.