Trust Deed Investing is a form of private money lending where you are the bank and the loan is secured by the property. Compared to most other investments, the returns are very high and the risk is relatively low.
The money will be used to purchase a specific residential property at “below market value“ and/or finance the rehab of a residential property. Loans and accrued interest are paid back upon sale of the property, which is typically 6-12 months.
Our borrowers purchase properties at below market prices, which means there is equity in the property when purchased. We will never finance more than 70% of the after repair value, which means there is always margin in the deal even if the market declines.
Yes, you can visit any time to see what the property condition is before, during and after remodel. We are completely transparent in our model and operations. We also post progress updates on the website for projects we're invested in.
The terms of our loans are typically 6-12 months. Sometimes the project closes earlier than the term length. Money partners receive their principal investments and owed interest at the sale of the property.
In the event of any default under loans, Boaz Capital Group will begin the foreclosure process on the Trust Deed and secured collateral in order to acquire funds owed per the loan agreement. Our money partners will receive their final interest payments along with the return of their principal investments. Money partners are also able to continue servicing the loan while receiving additional interest payments until foreclosure is complete and the property is sold.
Boaz Capital Group reserves the right to reject any particular investment. We have strategically designed investment opportunities to meet our money partners’ investment strategies. Once we send the summary for a deal, due to the time sensitive conditions, you should respond as soon as possible letting us know if you are interested. Funds need to be made available within 24-48 hours. If we do not receive a response, we'll send the deal summary to another prospective money partner. After a project is fully funded, we cannot receive any additional investment capital for that particular project, which will result in a rejection.
A 1099 is for an accounting of the tax income for the year. In order to qualify to receive owed interest (passive income) each investor is required by law to complete a 1099 once per year for taxation purposes.
Money partners are scheduled to receive a single 1099, regardless of the number of projects in which they have chosen to invest. Please consult with your tax advisor to determine the tax implications of any project invested in and earned income.