VSE Capital Realty, Inc. specializes in two types of Deed of Trust Note programs (“Trust Notes”) for our investment clients. Private mortgage lending is a high interest, relatively low risk method of investing mid- to long-term funds in real estate. These Trust Note programs are designed to provide an above average rate of return commensurate with the risk inherent in Trust Notes. These programs are also designed to qualify for self-directed IRA and 401(k) investment parameters.
Single Property Deed of Trust Note Program
Our Single Property Deed of Trust Note program is designed where the investor makes a direct loan to a purchaser of a residential/commercial property which is secured by a deed of trust placed on a specific property. These types of Trust Notes are generally for five to ten year terms with an interest rate of 6% to 9% per annum depending upon the loan to value ratio and assuming the Trust Note is a first Deed of Trust. The interest rate range for second or subsequent Deed of Trust Notes is approximately 10% to 15%, but may involve a lower combined loan to value ratio which makes the risk factor higher.
The investment process in purchasing a Trust Note is simple and no cost to the investor. The investor registers their name and pertinent information with us. Upon receiving the investor information, our staff places the investor on our active Trust Note investor list. Once a Trust Note is located, the investor receives a package of information from us containing property information, comparative market analysis of the property, purchaser financial information, and the basic sales contract terms and conditions. After reviewing this package, if the investor is interested and satisfied with the Trust Note opportunity, the Trust Note investor deposits the funds directly into the settlement attorney’s escrow account Upon completion of the transaction, the Trust Note investor receives a promissory note, recorded Deed of Trust, and title and hazard insurance policies as well as any allied documents.
CAVCO Investment, Inc.-Corporate Note Program
CAVCO Investment, Inc., a Virginia corporation (“CAVCO”), was organized in 1991 to offer the investor the opportunity to invest funds immediately and receive 6% to 10% per annum on a monthly basis on his investment. The investor purchases a Corporate Note which has maturities of three, five and ten years. The funds received from the sale of the Corporate Notes are used to purchase Trust Notes as the opportunity becomes available as well as other short-term lending and investment options. The investor receives a Corporate Promissory Note which is a general obligation of CAVCO and therefore offers multiple asset protection to the investor instead of a single property Trust Note.
For more information on these Trust Note programs, please contact David K. Vitalis, President and Principal Broker, VSE Capital Realty, Inc. at (703) 803-1060 or by email at dkvitalis@vsecapitalrealty.com.
