Trust Deed Investing

Company Info

Mortgage Pools: Frequently Asked Questions

An investor purchases units of GNT Investments Fund at $1,000/unit. The Fund then lends the money out to borrowers. Borrowers make interest payments to the fund each month, and the Fund pays out interest to the investors. The Fund contains a large number of highly diverse trust deed loans as security for the investment, similar to a “mutual fund” of loans.

 

Our maximum Loan to Value on any loan will never exceed 65%. This is determined by having an appraisal on each property.  GNT also takes into consideration other factors that assist us in making sound decisions prior to any loan being added to our pool. Most loans in our fund will fall below the Maximum LTV level. For example, if a commercial property is appraised at $1,000,000, a typical loan might be $615,000. This conservative loan to value creates an equity cushion (in this case over 38% or the loan has an LTV of 62%) A member of our management team personally visits and reviews every property before we issue a dime.

 

The property types we will consider consist of commercial, residential income 1-4 units, single family residences, some raw land for development. Land Loans will typically be offered at significantly more conservative guidelines and will be reviewed on a case by case basis. A Key factor for GNT Investments in evaluating a potential loan is the borrowers “Exit Strategy”, or their ability pay off our loan at the end of the term.  

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The properties are located throughout the state of California; however the highest concentration will be Southern California and San Diego County

 

Borrowers can rely upon GNT Investments to provide funding much faster and more responsively than traditional banks and similar lenders. Our underwriting process normally takes less than 5 days. We also fund loans that traditional banks will not. This is not to say that these are bad loans, it simply means that for some reason the borrower or property did not fit into a bank’s “Underwriting Criteria”. In this market Banks are extremely conservative and inflexible; this gives GNT Investments a competitive advantage and opens the doors on some great loan opportunities.

  GNT Investments has stringent underwriting guidelines that are designed to protect your investment. Investments into the mortgage pool are collateralized with many loans. Therefore the return on your investment is not interrupted by a borrower who does not pay. In the event GNT Investments needs to foreclose on property, the real estate will eventually be sold and the loan will be completely satisfied.   

The fund manager is GNT Financial Services Corporation. Marcus Carter is the President and Broker of GNT Financial Services Corporation. He holds a Bachelors Degree in Business Administration from the University of San Diego where he graduated in 1994. He began his career in lending while attending USD, through an internship at a national mortgage company. He continued his career in the lending industry after graduation and eventually founded GNT Financial Services Corp. in 1999. GNT Financial Services Corp, has an extremely successful track record of lending for 10 years.  Our success is built upon Trust, Honesty and Integrity and these principals go hand in hand with our business philosophy! GNT Financial holds the distinguished honor of being an “Accredited Business” by the Better Business Bureau.

 

GNT Financial Services Corp. is a licensed broker with California Department of Real Estate. GNT Investments is licensed through the California Department of Corporations.

 

The Fund has a Target Rate of Return between 8.5% and 10.0%. The Fund is designed to provide investors with a consistent and impressive rate of return, either for income generation or tax-deferred investments such as 401K, IRAs and pension plans. The key component of the fund is that it marries a high rate of return with Capital Preservation, thus eliminating the value swings in a typical stock brokerage investment account.

 

No, 100% of your investment goes into the Fund.  

 

The Fund pays interest earnings monthly, which are paid around the 5th to the 10th  of each month for the previous month’s interest. Investors have a choice of receiving monthly cash distributions or reinvesting by purchasing additional units, or a combination of both. Similar to other investments, every month you will receive a statement that details the earnings and shows the yield and the investment growth.

$100,000.00  The Fund Manager can make exceptions on a case-by-case basis.

GNT Investments is offered exclusively to qualified investors. Each investor must meet certain minimum standards of income and/or net worth.

Yes, it is very simple. Self-directed IRAs can invest in the Fund. Please call us for details as we have several custodial companies that do a wonderful job with Self-directed IRA’s.

 

A member may make a partial or full withdrawal from the Fund and receive a return of capital providing the following conditions have been met: (i) the Member has been in the Fund for at least 2 years. (ii) the Member provides the LLC with a written request for the withdrawal amount.

Income information is reported on a Schedule K-1 which will be provided to you by January 31st. These are prepared in conjunction with our audited financials at the end of each calendar year. * Audited financials are also available for each fund investor upon request.

  

The offering is made through the Offering Circular. After reading the Offering Circular, complete the Subscription Agreement and return it with your check, made payable to: GNT Investments LLC.
If you prefer to wire your funds, contact us for wire instructions. For investments made by check, there is a five-day hold period prior to earning interest.