Sun Pacific Investor Welcome
A Newsletter for Investors who work with us.
Integrity • Knowledge • Honesty
Because there are more new Investors here at Sun Pacific, it’s a good time to review how we can work better together. With increased business it is imperative to be more efficient!
We are a family owned & operated company and have been doing Hard Money Loans since 1988 – for over 3 decades now. We are located in Santa Rosa, California (north of San Francisco in the Sonoma County wine country) and offer Notes throughout all of California, continuing a legacy of 34+ years in the Private Money lending business.
WHAT WE DO
WHAT WE DO:
- We are Hard Money Brokers. We do not service loans, we don’t have a pool, we don’t have a Trust Account, we don’t have an escrow company – we promote loans and place them with investors. Yes, doing this since 1988 so pretty experienced with it.
- There is a lot of front-end work that we do to vet each borrower and their loan; only 1 out of about 7 loans that come to us met our qualifications before we even send it out to you to see. Our job is to gather a complete loan file that includes loan application, credit report, preliminary title report, value of property, proof of income, assets and more as needed.
- Pretty much daily we send out Trust Deed Offerings via email (see example below). For each Offering we note the address, provide a picture, give loan to value, property address, bit of information about buyer and property. If you are interested, just respond back to that email with the offering and you can get into the line to receive the full loan submission package (which is a link sent to you, bringing you to our safe DropBox link with all the borrower details). You will review these items and make an informed decision if you want to approve the loan and become the Lender. (You are not approving a loan by stating you are interested. We try to keep with “first come, first serve” so do not spend any time doing research! If you see an offering you like respond to the email and let us know you are interested.) NOTE: You will always get a response from us within a 24-hour period no matter what. If you don’t, please call in to our office so we can fix any email issues.
- Our policy is “One Loan, One Investor” (we do not have a pool of money from investors sitting in a trust account). When this is not possible due to size of loan, etc. we are then open to fractionalizing the loan (allowing several investors to put in a fraction of the loan amount until the total is met).
- Did you know that you need to qualify to invest your money in Deeds of Trusts? This is a Federal Rule, enforced by the State of California. You cannot invest more than 10% of your net worth into a single Note. And, net worth does not include your home, furnishings or automobiles. Give us a call to help determine what your net worth is (for example, if you have a net worth of 1 million then you can invest $100,000 in multiple Notes, just can’t invest $300,000 in a single Note).
- Once you approve the loan, we send you an “Investor Approval Form” wherein you need to state your exact vesting and complete information as to how much money you are investing in the particular NOTE. We prepare Hard Money Loan Docs for the Borrower(s) to sign. These are specific documents from a Hard Money Loan Documents Program we use. These loan documents are sent to Escrow with a copy of the Promissory Note and Deed of Trust, with a copy sent to you for your review. At this time, we give you an estimate of when the loan will need funding (when and where to wire your money to Escrow; we never touch yours or the Borrowers’ money).
- Once the Hard Money Loan Docs are signed in Escrow, you have funded the loan with a wire and it is recorded by Escrow through the respective County, then funds get dispersed to the Borrower. Within 1 week’s time we will send you our famous “INVESTOR RED FILE”. This can be sent via email or mailed to you (at the time of you filling in the Investor Loan Approval Form, you chose which option you prefer). Included in our red colored loan file is a copy of all signed loan documents. On the front of the file is a simple summary: Name of Borrower, Address of Property, Loan Amount, Interest Rate. Here’s a picture of a Famous Investor Red File – again, it can be sent soft copy through email or mailed hardcopy!
Note: You will receive your pro-rated interest and reimbursement of wire fees directly from Escrow, as this is a cost the borrower covers.
- Average time from start to finish for us is 2 weeks – but many do fund within a single week.
- If you are getting the loan serviced by a Servicing Company, YOU must inform the Servicing Company, fill out their forms, and have it set up. We do not set up servicing for you but we do provide a copy of the loan docs to the Servicing Company. (We highly recommend a full servicing company such as Redwood Trust Deed Services, located in Sonoma County and in business over 35 years. A lot of our Investors use them with rave reviews and zero complaints.)
WHAT YOU DO
- Please read the Investor Welcome email that we send you, right after you are added into our Investor database. Included is a booklet from State of California about investing in Hard Money.
- If not already given, we will ask you to give us your name, address, phone #, email address and a few other questions regarding Hard Money lending. We will add you to our email list of investors and start emailing you Trust Deed Offerings. Here is a pic of what it will look like.
- When you see a Trust Deed that you are interested in – and have money available to place on that Trust Deed – all you need to do is hit “Reply” on your computer and state that you are interested, including the specific property address and amount. You are not approving the loan with this. Feel free to ask any other questions you have at this time. Your email response goes directly to the respective Loan Originator, who is putting the loans together.
You will receive a response within 24 hours max, with the loan package (which is a safe link that includes loan application, credit report, property details, etc.) if it is still available. If the loan is no longer available, you will still be contacted. If you are not contacted or do not receive a response within 24 hours, please call or send in another email. We have found that there are many email systems that pick up this verbiage as spam. We have a policy that every email or phone call gets responded to as quickly as possible. On a very busy day that may be as long as 24 hours, but never more than that.
- Once you receive the loan submission, you should review it and exercise any other due diligence until you are comfortable with that loan or wish to decline it. Please note that these loans generally require a fast turn-around, so we appreciate a speedy review and approval or notice of decline. Taking longer than 24 hours is a disservice to the Borrower. Borrowers come to us for the speed and performance we offer in getting their loan done. They do not come to us for the interest rate!
- Once you approve the loan, we will ask for your vesting and your choice of Servicing Company. We are unable to prepare LOAN DOCUMENTS without this information.
- Get your funds ready so they can be wired to escrow in a timely fashion.
- Send the money to Escrow when requested.
- Receive and review the “Famous Investor Red File” (shown to the right) – which is sent to you by us Priority Mail.
Sun Pacific Mortgage Family Hard Money Team
800 Mendocino Avenue #2, Santa Rosa, CA 95401
CA DRE License # 01464899
NMLS # 360993