Here at Aegis Funding, our trust deeds are secured against real estate assets with a protective equity position (difference in value to loan amount). What this means to investors is, in the unlikely event that we have to foreclose on a home, the proceeds collected on resale would be sufficient to pay all interest due to investors, all fees and real estate commissions. Our investors are seeing performing returns from 9-13% annually. We, the founders of Aegis, invest heavily in these products and we underwrite every loan as if we were funding it personally.
If you or anyone you know is interested in learning more about trust deed investing contact us today.
We also have a Mortgage Pool; Aegis Asset Backed Securities, LLC
If you're considering investing in trust deeds, but desire more diversification, liquidity, and flexibility, a mortgage pool investment could be right for you. Much like a mutual fund, a mortgage pool is a portfolio of real estate loans funded collectively by multiple investors, each purchasing shares in the pool. Interest payments are paid out proportionately as monthly dividends. By allowing an investor to spread their investment across all the loans in the fund, mortgage pools offer greater diversification than investing in individual trust deeds.*
Benefits of Mortgage Pool Investing
Diversification. By allowing an investor to share in multiple trust deeds, mortgage pool investing provides significant diversification within the investor's trust deed position - further reducing risk.
Convenience. Mortgage pools allow investors to invest in multiple trust deeds with the bookkeeping convenience of a single investment. What's more, there is no need to reinvest capital returned when loans are paid off - it's automatically reinvested in new loans as long as your investment in the fund remains active. (This is one reason that a mortgage pool can be a great option for Self Directed IRAs – we have excellent resources for self-directed custodians).
Dividend reinvestment. Because monthly interest payments are distributed to shareholders as dividends, investors have the option to reinvest their yields automatically and compound their investment.
Liquidity. Investment in individual trust deeds are locked in until the loan matures - but, shares of a mortgage pool can typically be sold at any time after 24 months after the initial investment date. In special circumstances we are able to liquidate shares early, as long as the exit is not to the detriment of the pool as a whole or the other investors in the pool.
Mortgage Pool Properties
Aegis Funding, a division of Aegis Realty underwrites all loans funded with the same scrutiny as we would with our own money, in-fact principals Jason Moore and Kip Adkins have over 1.5MM invested in the Aegis Asset Backed Securities pool. All loans are secured and recorded on California Real Estate, limiting our lending efforts on regions in which we have significant experience helps us manage risk.
Investor Suitability Standards
The one limiting factor in our mortgage pool is that we require all new investors to be accredited investors, meaning, a total net worth of $1,000,000 (excluding principal residence) or an annual income of $200,000 (for an individual) or $300,000 (for a couple) is required. We ask that you provide a letter from your investment banker or tax preparer certifying that you meet these requirements.
Other Things You Should Know
While our mortgage pools have risks like any investment, and past performance is no guarantee of future performance, you may be interested to know that our pools have consistently delivered yields from 9-12% on average since inception. We are also proud that we engage David Allen Dunner, CPA to independently audit our pools on behalf of our investors. We originate and service our loans with the assistance of “The mortgage Office” software, the leading technology platform in private money.