Sun Pacific Investor Quarterly
A Newsletter for Investors in Trust Deeds
Volume 8 Issue 2 – Integrity • Knowledge • Honesty – March 2018
2017 Year In Review…
It is already March 2018 and I am just finding time to write this Year in Review report. That’s because we are so busy writing and getting done new loans.
Production in January 2018 was double what it was last January. February was more than double. Ken and I originated 50 loans in February – exactly 25 each! That is a record for new loans in a month.
Still let me say “Thank-You to our Investors for your participation in making 2017 our biggest and best year ever of doing Hard Money loans!” Along the same line, Lynn and I hit a big milestone on January 11, 2018 – 30 years of doing loans!
In 2017 we funded 240 Hard Money loans. That was only 5 more loans than in 2016 but the dollar volume increased from $58,695,930 to $79,355,900! That’s because the average loan size went from $249,769 in 2016 to $330,649 in 2017, an average increase of 32.4%.
It was a good mix of owner occupied loans, rental property loans, Bridge loans, Temporary Loans, small Commercial Loans and Land Loans.
We do loans state-wide.
The top source for loans was our Past Borrowers. That is truly a testament to our tremendous effort with customer service. After that was referrals from other Lenders. Then came Real Estate Agents.
We took an average of 21 days to fund a loan. Almost 1/2 of the loans were done in 15 days or less.
A good percentage of the loans were fractionalized meaning they were funded by more than 1 investor.
January 11, 2018 marked the 30th Anniversary of our family company doing home loans.
Here’s to the next 30 years!
Ken Walker & Forest Tardibuono
The Guys in the White Hats
To Service or Not to Service –
that is the question.
“Loan Servicing” includes collecting payments from borrowers, disbursing payments to lenders or note holders, mailing appropriate notices, monitoring the status of senior liens and encumbrances, maintaining adequate insurance coverage(s), and coordinating foreclosure proceedings.
Sun Pacific does not service loans. We are busy doing loans! We do suggest you hire a Servicing Company.
There are 2 reasons to hire a Servicing Company: #1 – if the loan is fractionalized (more than 1 investor) and #2 – if you do not know the whys, wherefores and laws of Servicing or collections.
We suggest a full-service Servicing Company. Some Servicing Companies will charge you a very low fee to service, but “servicing” only consists of receiving the payments and sending them to you as the lender. If something else is required, that’s an extra charge. A full-service Servicing Company does ALL of the above and much more (see first paragraph above).
RECOVERING YOUR INVESTMENT WHEN THE BORROWER FAILS TO PAY….
Remember, this is an investment and you should be versed in how it works. These are high interest Trust Deed loans/Investments. They can have risk. What if the borrower doesn’t make their payment? What do you do? Call the borrower and find out what’s up. Have your Servicing Company call or write to find out what’s going on and demand payment.
If that doesn’t work…… record a Notice of Default and start Foreclosure.
You have a Promissory Note that is a “written promise to pay or repay a certain amount of money at a certain time, or in a certain number of installments, or on demand to a named person and it usually provides for payment of interest”….
This investment is secured by a Deed of Trust recorded against the title of the borrower’s property. If the borrower defaults, your remedy is to foreclose. No one expects the borrower to default, but it does happen. Most foreclosure actions do not go to sale on the “Court House Steps”. 99% either refinance and pay you off, bring you current, or sell their property and pay you.
We hope you find the above informative.
Sun Pacific Mortgage & Real Estate
800 Mendocino Avenue #2, Santa Rosa, CA 95401
CA BRE License # 01464899
NMLS # 360993