Defining The Concept Of “Fractional Investing”
At Liberty First, we have generated thousands of fractional Trust Deed investment opportunities throughout our 40 plus-year history totaling over 200 million dollars for qualified investors who reside in California.
The fractional investment group format is one of the oldest methods for investors to extend Trust Deed (hard money) mortgage loans to borrowers. The structure is simple: A small number of investors are brought together to provide a loan to a qualified borrower. Like any other mortgage loan, these loans would ultimately secured by real property.
Liberty First Financial is unique in our industry by being a direct lender. Our investors do not act in a usual lender capacity as they would under the traditional format used by most Trust Deed investment firms. Here all investors have the opportunity to purchase a fraction of an existing loan currently serviced by our firm. The idea behind this methodology goes back to our founder’s Norm Lopes belief that no client should invest in any loan transaction that we would not have for ourselves.
Where Trust Deed investment firms differ from traditional lending institutions is in the meticulous attention they give to each potential transaction’s Loan-To-Value determination. It is highly important that all loan amounts are based on a favorable Loan-To-Value ratio in order to buffer against even the slightest possibility of loan default.
Trust Deed investments offered by Liberty First Financial are regulated and annually audited by the California Department of Real Estate. Liberty First Financial is a licensed real estate broker and holder of both the State & Federal MLO endorsements required under the SAFE act. We are also a long term member of the Calirfornia Mortgage Association.
Additional Topics of Interest:
Our company is one of the oldest, continuously operated, Trust Deed investment firms in the San Francisco Bay Area. Discover more about our 4 decades of helping our clients succeed by reading: Liberty First Financial - Trust Deed Lending & Investments.
Reading: Trust Deed Investors See Higher Yields With Minimal Exposure will increase your understanding of how Trust Deeds provide a preferable alternative to other investment vehicles.
Please go to: Why Californians Prefer Trust Deeds if you wish to find out why, from an investor’s point of view, Trust Deeds are superior to Mortgages.