Sterling Pacific Financial offers two investment programs; a Fractional Note and Deed Program (for investment in specific loans secured by a specific property) and a Mortgage Pool Program (to spread your investment across a variety of loans).
The program you choose will depend on your diversification strategy, liquidity needs, and whether you want to reinvest earnings or take distributions. We look forward to the opportunity to discuss your goals with you at any time.
Fractional Note and Deed Program:
The most traditional way to invest in trust deeds is to invest
in a specific loan secured by a specific property type, either
funding it entirely or in part (via a "fractional
note"). This type of investment offers maximum control
and involvement, since you'll choose the exact loan your invesment
will fund.
The specific kind of property in which you want to invest is a key decision. Among your choices with Sterling:
- Office parks
- Medical centers
- Shopping malls
- Other commercial and industrial properties
Other decisions include:
- Your preferred positioning (first or second deed of trust), based on individual risk tolerances.
- The length of the loan, which is generally 12 to 36 months
Mortgage Pool Program:
A mortgage pool is a collection of
notes secured by deeds of trust. Investors invest in membership
interests in the mortgage pool. Much like a mutual fund product,
it’s a way for investors to pool their assets so they can participate
in a variety of individual investments.
Rules for participating in mortgage pools are regulated by federal and
state securities laws. Pools are limited by the number of participating
investors, and sometimes restricted by state residency. There
is a required minimum investment period of twelve months. Once
this period has elapsed, withdrawals are handled on a request
basis. There are no penalties for withdrawals. We can provide
more detail on these restrictions if you choose a mortgage pool.
Sterling offers two different mortgage pools for investors --
for more information about these two options, visit our mortgage
pool page.