FREQUENTLY ASKED QUESTIONS

General | Brokers / Realtors | Borrowers | Investors

 

General

 

What is Private Money?
Private Money are funds from private investors. These high networth individuals entrust us with their money to fund mortgage loans. This investment type is a way for these people to diversify their portfolios.

 

How is Spectrum Funding Group licensed?
We are licensed by the California Bureau of Real Estate

Does Spectrum Funding Group fund properties outside of California?
Yes, as a private money lender, we are able to fund in multiple states

 

Brokers/Realtors

 

Why would I work with Spectrum Funding Group?

 

• Unlike institutional lenders, we can fund a loan in 5 business days.

• Unlike institutional lenders, you can get paid in 5 business days.

• We are a direct lender – since it is our money, we only have to satisfy our lending criteria which are drastically simplified.

• Typically, all you need to provide is an appraisal, a loan application and a borrower’s authorization.

• An ever growing list of brokers and Realtors has discovered how easy it is to do business with us.

• We make your client happy by delivering what we promised when we promised.

• We are professional, diligent, responsive and focused on your success.

 

If I bring a borrower to Spectrum Funding Group, how do I get paid?
You must be licensed as a Real Estate Broker. Subject to executing our Broker Agreement, we pay you as the cooperating broker.

 

What are your rates?
The financial crash of 2007 wiped out all subprime and ALT-A lenders. But even the biggest and strongest banks suffered huge losses. Consequently, banks are still shying away from funding mortgages – even today. The disappearance of many lending institutions along with the reluctance by the “surviving” banks to engage has left a huge void in the marketplace. Many strong borrowers and many borrowers with substantial equity in their properties simply cannot obtain financing anymore. Our loan products address that need. Our funding, however, does not come from Wall Street or the Federal Government. Instead, we work with high networth individuals to lend these funds to our borrowers. For their risk, our investors expect to earn 10% or better.

 

Borrowers

 

How is Spectrum Funding Group different from a “regular” lender?

 

• We really operate just like any other lender.

 

• We service over 95% of our loans and do so for the life of the loan.

 

• Each month, you receive a statement from us.

 

• Each month, you make your payment to us.

 

• If you have any questions about your account, you call us.

 

• At year’s end, you receive your tax forms from us.

 

Who do I make my payments to?

We service over 95% of our loans and do so for the life of the loan. So, each month, you receive a statement from us, and, each month, you make your payment directly to us.

 

How do I qualify for your loan?
We primarily have 2 criteria: the equity in the property and your ability to pay

 

What are your rates?
The financial crash of 2007 wiped out all subprime and ALT-A lenders. But even the biggest and strongest banks suffered huge losses. Consequently, banks are still shying away from funding mortgages – even today. The disappearance of many lending institutions along with the reluctance by the “surviving” banks to engage has left a huge void in the marketplace. Many strong borrowers and many borrowers with substantial equity in their properties simply cannot obtain financing anymore. Our loan products address that need. Our funding, however, does not come from Wall Street or the Federal Government. Instead, we work with high networth individuals to lend these funds to our borrowers. For their risk, our investors expect to earn 10% or better.

 

Investors

 

Why would I invest with Spectrum Funding Group?

 

• We have been in business since 2009.

• We have funded thousands of loans and over $500M.

• We enjoy a great reputation with our investors who have been investing with us for many years.

• We pride ourselves for being ethical, professional and diligent in all aspects of our operation.

• We are happy to provide a potential investor with any references required.

 

What is Trust Deed Investing?

 

• By investing in a Trust Deed, you become the lender on a mortgage secured by a California property.

• Your name will be recorded with the County as the beneficiary of the Trust Deed.

• Each month, the borrower sends the mortgage payment to us for processing, and we then forward your proceeds to you.

• Read the official California Bureau of Real Estate publication “Trust Deed Investments – What You Should Know!!”

• Read the Wall Street Journal article on Private Money investing “Investors Who Do a Few Mortgages on the Side”

• Watch the Wall Street Journal video on Private Money investing “Investors Who Do a Few Mortgages on the Side”

• Read the Wall Street Journal article on Private Money lending “Explaining the Methods of Private Money Lenders“

 

Why would I invest in Trust Deeds?
Trust Deeds are a compelling alternative investment which provide attractive yields and passive monthly income as part of a risk-averse strategy.

 

How am I vested?
You instruct us how you want to be vested. Our loan documents including our note and deed of trust will feature your vesting. We do not operate loan pools or LLCs to fund our loans.

 

Who do I fund with?
You will wire your funds directly to the insuring title company.

 

What is the minimum investment?
$25,000 – our offerings are available as multi-beneficiary (fractional interest portions) or whole-note investments.

 

What is a typical yield?

 

Our loans yield between 9.50% to 12% depending on the collateral. On average, our investors’ portfolios yield 10.91%

 

What are your rates?

The financial crash of 2007 wiped out all subprime and ALT-A lenders. But even the biggest and strongest banks suffered huge losses. Consequently, banks are still shying away from funding mortgages – even today. The disappearance of many lending institutions along with the reluctance by the “surviving” banks to engage has left a huge void in the marketplace. Many strong borrowers and many borrowers with substantial equity in their properties simply cannot obtain financing anymore. Our loan products address that need. Our funding, however, does not come from Wall Street or the Federal Government. Instead, we work with high networth individuals to lend these funds to our borrowers. For their risk, our investors expect to earn 10% or better.

 

What servicing do you provide?
We provide comprehensive loan servicing including: sending statements to borrowers and investors, collecting payments from borrowers and disbursing earnings to investors, monitoring property taxes and insurance coverage, managing the foreclosure process, completing year-end tax reporting and responding to borrower and investor inquiries. 

 

How much do you charge for servicing?
We advertise all our investment with the “Investor Yield” which is the net rate you will earn. The note rate on the investment is slightly higher. The difference – or spread – compensates us for our servicing activities. There are no other charges.

 

How do I start investing?

 

• Complete your initial Trust Deed investing research, including reading the California Bureau of Real Estate publication “Trust Deed Investing – What You Should Know” and any other personal research you may feel necessary.

• Review our available Trust Deeds. Choose an investment appropriate for you. Call or email Marcel to discuss and ask for any other information you may need from us.

• You will receive a complete “due diligence package” containing the borrower’s loan application, the preliminary title report, the credit report and the appraisal.

• You wire your funds directly to the insuring Title Company on the appropriate day.

• After the loan funds and records, your loan servicing account will be activated, your interest due at closing check is mailed, and we will distribute your earnings twice per month via check or ACH. You are now on your way to building a Trust Deed investment portfolio!