 There are numerous
differences between a "Normal Deed of Trust" and the way the Equity Rescue Program uses a "Performance Trust Deed". Below we've summarized and compared some of the
important use differences. This comparison illustrates how we use a "Performance Trust Deed" to produce a more attractive, secure and rewarding investment.
Earning Difference
For The Investor
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Normal
Deed of Trust
Results vary as loans can earn single digit returns and double digit
returns. Loans can also suffer very large loses when a borrower defaults. |
vs |
Performance Trust Deed
Offers a pre-agreed, fixed bonus reward of 42.5% of the amount invested. The investor's bonus reward payment is secured at the start of the investment. |
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Collateral Difference
For The Investor |
Normal
Deed of Trust
Only one property equity protects the funds. The property has an equity that can diminish in value. |
|
Performance Trust Deed
Property title
and a substantial cash reserve are used as collateral to protect the
invested funds. Acquisition of additional properties increases the amount of collateral. Together they exceed, by far, the amount of security
that a typical trust deed loan offers. |
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Investment Time Difference
For The Investor |
Normal
Deed of Trust
The average length of an equity loan, trust deed investment is three (3) to five (5) years. |
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Performance Trust Deed
For each investment the time frame is approximately one (1) year or less. The timing can shortened even further with the use of the accelerated investment program. |
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Monthly Loan Payment Difference
For The Investor |
Normal
Deed of Trust
The borrower is responsible for the loan payment and can become unreliable
or even default when additional debt is incurred. |
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Performance Trust Deed
The Equity Rescue Program has a large, preplanned cash reserve fund available which, if needed, can be used to makeup
any loan payment deficiency. The reserve fund makes a loan delinquency impossible. |
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Reserve Difference
For The Investor |
Normal
Deed of Trust
To guard against the loan security from being "wiped-out", a
prudent lender is required to keep a large cash reserve fund. |
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Performance Trust Deed
The investor is not required to keep a cash reserve beyond the original investment amount. No
additional cash will be requested from the Equity Growth Limited Partnership (EGLP) investors. The investor holds a legal position that prevents the investor from being "wiped-out" by a foreclosure. |
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Finding The Opportunity Difference
For The Investor |
Normal
Deed of Trust
It takes the investors personal time to locate, research and contract with each borrower, thus the
funds are often idle and earn less. |
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Performance Trust Deed
Qualified investment opportunities are often waiting.
The funds can be contracted for reinvestment into such waiting opportunities. No additional capital investment or personal time is required of the investor. |
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Foreclosure/Bankruptcy Difference
For The Investor |
Normal
Deed of Trust
Nonpayment can create legal problems such as foreclosure
or bankruptcy which are very costly, time consuming and can severely diminish the lender's bottom line. |
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Performance Trust Deed
Within the EGLP it is not possible for the investor/lender to experience a foreclosure
or bankruptcy. |
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