Investors.

• Potential borrowers inquire about equity loans against their property.
• All client and property information is carefully screened and processed by Karpe Real Estate Center, with property valuations determined by a third party licensed appraiser.
• There are numerous scenarios and reasons for our borrowers to need an equity loan. We do our due diligence in advance that borrowers are able to repay the loan per the applicable terms. Any available cross-collateralization of other real estate is presented and considered, as are liquid and hard assets which may be pledged as collateral for the loan.
• If the loan meets our lending guidelines, we then contact investors to present the details of the loan transaction for their immediate consideration.
• A Karpe Real Estate Center loan is secured by a Note and a Deed of Trust
• A note is a written and negotiable instrument.
• A deed of trust is a recorded document which secures the note.
  Beneficial interest in the note and deed of trust are sold to private lenders at a fixed rate and term.
• Borrowers make payments to Karpe Real Estate Center, who then makes direct payments (may include interest and principal) to the investor.

• Individuals
• Family Trusts
• Corporations
• Limited Partnerships
• General Partnerships
• Individual Retirement Accounts (IRA’s)
• Pension Plans
• Institutional Lenders
• Mortgage Partnership Pools

Your funds or IRA must be held by a third party “custodian”, who acts as your intermediary. This is known as a “self directed” IRA. Once you have an account, you can then direct those funds to be used as capital to fund trust deed investments.

If you have a current custodian for your self-directed IRA, first check to see if they will accommodate trust deed purchases. If not, contact us for information on custodians that will allow you to place your IRA funds in a trust deed investment. In addition to IRA’s, you can also transfer existing pension plans to a custodian.

Once your funds are transferred, notify us how much you would like to invest in trust deeds. We will then forward loans fitting your individual criteria to you to decide whether or not you would like to invest. Once you have decided on an acceptable trust deed, we will send you the appropriate documents for signature, and will work with your custodian to transfer or rollover the funds.

A self-directed IRA is no different from any other IRA. It indicates that you the client choose your IRA investments. The rules governing IRA investments types are exclusive – not inclusive. Therefore you can invest your IRA funds in a virtually unlimited set of investments, except for those specifically excluded by law.

This is not a new investment strategy. You have been able to buy real estate and trust deeds within your IRA since the inception of IRA’s over 30 years ago.

• High Fixed Yield – Great return on investment with 10-13% returns, historically beating the Dow Jones average.
• Fixed income – A trust deed investment is considered to be a fixed income security, with fixed yields from 10-13%. Trust Deeds secured by tangible real property, when professionally underwritten and managed, have become a good investment alternative for the income producing portion of an investment portfolio.
• Diversification – Trust deed investing offers many investors another method of diversification to help reduce volatility in their portfolio and a way to generate additional income.
• Security – trust deeds secured by California real estate
• Stability – Interest remains constant throughout the term of the loan.
• Low Cost – Servicing fees range from 0.50% to 1.50% to annualized, calculated on the unpaid principle balance.
• Predictability – Most fixed-income investments also provide a predictable stream of income. This can be an advantage for current or near retirees who seek regular income to supplement a pension and/or Social Security.
• Tax Advantage – The interest income generated by some fixed income investments are tax deferred or tax exempt from federal and/or state income taxes. This includes investing your IRA or pension funds in trust deeds.
• Your Trust Deeds are secured strictly by Real Estate.

• Trust Deed Investments are not insured by the FDIC or any other government agency. Additionally, Karpe Real Estate Center, its principals and associates are not allowed to guarantee the success of the investments. The investments involve certain risks and are suitable only for persons of adequate means who anticipate no need for immediate liquidity.
• The value of the property is given by the appraiser reflecting his/her opinion of the value at a specific date. There is no assurance that the appraised value will reflect a fair market value, as general and local economic conditions may change.
• The borrower’s ability to repay the loan will depend upon the borrower’s financial conditions which could change over time.
• There are general risks associated with real estate investments including general or local economic conditions, neighborhood values, interest rates, real estate tax rates, the supply of and demand for properties of the type involved, the ability of the borrower to obtain necessary alternative financing, governmental rules and acts of nature.
• Default by the borrower could interrupt your monthly payments. This will result in the initiation of the foreclosure process.