How do I invest in deeds of trust?

One of the best investments you can make is in a trust deed. Simply put, you become the bank for someone looking to put a loan on real estate. Yields to you can range from 7-15% annually and you can even use money gathering dust in your IRA account too. Most commonly interest payments are made monthly creating a nice form of income.

What is the process? Most investors use a local private lender/broker who already is set up to do deeds of trust or hard money loans. The company will market to borrowers and when a loan comes in, they underwrite the loan just as a bank would. However, instead of the loan being funded by a bank, the lender will use investors like you to obtain financing. What do these brokers look at before deciding to offer a deed of trust to their investors? First of all, they look at both the borrower and the property to see if the loan request makes sense. Here is a short list of items they look at:

Borrower	Real Estate
Credit Score	Condition
Income/Tax returns, W-2s, rents	Value
Assets-Cash , investments, Real Estate	Loan amount vs. value (LTV)
Experience-invested in RE before?	Title- liens currently against property?
Exit Strategy – How will loan be repaid?	Location
	Type – Commercial, residential, land, etc.
	Income – what is potential rental income?

After the analysis, the broker usually will decide to do the loan and send the borrower an offer sheet outlining the terms of the loan. If the borrower accepts, the broker will then notify his investors there is a new loan to fund and send them an offering.

How do I decide if this loan (deed of trust) is for me? Unless you are making a loan yourself, you are probably putting a lot of faith in the broker who sent you the offering. A few questions to ask yourself and the broker come to mind.

• What is the loan to value? The higher the loan to value, the riskier the loan because if something should go wrong, there is less equity in the property if you have to foreclose and sell it to get your money back. Typically, 50-65% is the maximum you want to go.
• Can the borrower make his loan payments?
• If the borrower cannot pay, could we rent the property?
• Is the property in a stable market?
• What is the exit strategy of the loan? This is by far the most overlooked but most important question. After the loan comes due in  1-5 years, how will the borrower pay us off? A few ways are refinancing with another lender  or selling the property.
• Does doing this loan make sense? Why can’t the borrower do a regular bank loan? Find out!

So you have decided to make a trust deed investment. Now create your own loan criteria that you can discuss with the borrower or the broker.

Loan size preferred or amount you want to invest?

What areas will you lend within?

What is your interest rate return minimum?

What is your minimum and maximum loan term? Less than 1 year? 1,2,3 or even 5 years?

What is the maximum LTV you will go up to?

Where do I find available trust deed offerings?

We can put you on our mailing list and when new deeds of trust come available, you will receive a deal sheet with everything there is to know about the opportunity.

I still have questions.

We are at your service. Our contact information is below.

Russell Roesner

rroesner@equitycoalition.com

www.equitycoalition.com

415 680 3454

Spend Vacation In Costa Rica:

When some one planning to pass the vacations, the main issue that sometime make hurdle is the choosing of place where to visit.If you are looking for an all-inclusive vacation that will manageable within your budget? Look no further, Costa Rica vacations may be just the right answer.
Before going anywhere chose the place of your interest which can make you enjoy more adventurous and remembrance vacations. In Costa Rica,there are many famous places which can attarct the visitors due to there mouth-open beauty and tropical paradise in which Quepos, Heredia, San Jose, Puerto, Monteverdi includes the best.

Below I try to describe these places which I hope so make you to better explore Costa Rica Vacations.

Quepos:

Quepos is a city in Puntarenas Province, located in Costa Rica.There are numerous famous Costa Rican hotels,bars and restaurants in the city.It is located about 160KM from San Jose,on the Central Pacific Coast of Costa Rica and famous due to fishing destination and sports activities.This city contains the best Costa Rica Condos, Costa Rica Villas and lots.Manuel Antonio has the most popular National Park and beach in Costa Rica. 

Puerto:

Puerto is a small beach town located at 130 miles from San Jose, the capital of Costa Rica.Puerto Viejo is a popular destination for all types of tourists who visits Costa Rica. It is well famous in the surfing community and also home to beautiful Costa Rican beaches, such as Playa Negra, and Punta Uva, Playa Chiquita.Spend your vacatios in Puerto Viejo where clear water, coconut palms, great surf and a laid-back Caribbean atmosphere make a favorite among travelers and the Costa Rica real estate is boosting day by day due to these stumble places.

San Jose:

San Jose is the capital and largest city and located in the heart of Costa Rica.You can spend your time hiking and hunting through the San Jose tropical forest or resting on the sandy beaches that outline the Costa Rican coast.You can enjoy the best Costa Rica Restaurant, Museum, night life and most visiting Costa Rican hotels which make spraying on your face .While travelling you can glance up the surrounding mountains, farm fields which are planted with the golden beans.The pleasant climate and the beautiful views of mountainous city makes San Jose a memorable city.

Monteverde
Monteverde is the famous city of Costa Rica having wide range of Costa Rica Accommodation ,hotels, Costa Rican Rental houses and apartments which are affordable under manageable budget of the visitors and tourists.It is situated almost 150 KM from the capital San Jose and famous due to the home of the most popular cloud forest jungle.
Due to the capability of accommodate a large number of visitors,the real estate margin is increasing day by day which is so fruitful for the Costa Rica Real Estate.

I hope so these information must be helpful for those who want to visit costa rica and will make the vacations memorable.Best of luck for your vacations.

8 Reasons to buy in San Buenas Golf Resort

1  UNIQUE TERRAIN

SAN BUENAS GOLF RESORT & SPA is almost unique. The resort nestles in a valley surrounded on all sides by rolling hilltops, providing homes with an unrivalled privacy. Thanks to these unique surroundings, the Costa Rica golf course becomes a natural part of the valley and the homes melt in to the hills.
2  RESTRICTED ACCESS AND 24 HOUR SECURITY

There is only one entrance and exit point to the resort. A 24 hour security service ensures that access is restricted for the peace of mind and security of all residents and guests.
3  LOW DENSITY BUILDING

In SAN BUENAS GOLF RESORT & SPA you will find less than FIVE properties per hectare. Permission is granted for the construction of more than 120 private houses/villas and up till 1500 condo properties within the whole resort, but to maximise your comfort and enjoyment, we have reduced this total number by 40%. This is clearly a development which respects its surroundings in order to create the idyllic place to live.
4  GREEN AREAS AND AN ENVIRONMENTAL PROTECTION PLAN

SAN BUENAS GOLF RESORT & SPA truly does respect its environment and the development incorporates a natural, protected green area of more than 13 ha and more than 5 ha of children's playground. More than 11000 native trees have been planted so far, to turn the former melina farm back into a piece of wild nature .
5  5 STAR HOTEL WITH SPA

The resort will boast a five star hotel with spa. gym and all amenities in golf needed to turn your stay here into an unforgettable one.
6  THE LOWEST PRICES

Our prices turn around 60% of all other comparable real estate offers in Costa Rica. All our properties include a full GOLF MEMBERSHIP for 2 family members
7. PRIME LOCATION FOR EASY ACCESS

SAN BUENAS GOLF RESORT& SPA is very accessible over good roads and close to the Palmar Sur airport, that might become an international one in only a few years. By road, the resort is just a few minutes drive from the Costanera Sur, that connects us with Jaco and San Jose. By plane, the resort can be reached in 40 minutes.
8  THE BEST INVESTMENT

SAN BUENAS GOLF RESORT &SPA offers a prime investment opportunity in the Southern Pacific zone of Costa Rica . Being the first golf resort in the area, you can naturally expect an increase in the value of the resort as a quality tourist destination for the next years. Furthermore, with the act-in services that will be available, a resort management team can handle the renting of your property to maximise your rental potential.

Costa Rica Real Estate

7 good reasons to invest in Costa Rica

1. Stable Government:
Costa Rica is a democratic republic with three branches of government and has enjoyed one of the most democratic governments in Latin America. As of 1948, Costa Rica abolished it’s army and since 1949 has enjoyed its peaceful democratic existence, often being referred to as the “Switzerland of Central America”. The government is one of the people and one that very much sees the value of Costa Rica Tourism. Over the past few years the government has incentivized foreigners to come and retire in Costa Rica. Stable government ensures that the money you put into your Costa Rica property is safe. Political turmoil will never be a reason for illiquidity in your Costa Rican investment and also provides reason why Costa Rica is a great place to buy. There are many other locations around the world that investors think of to go and buy, but stability is very important and should play a huge factor in anyone’s investment decisions.

2. Stable Currency:
Investors want to know if their money is safe in Costa Rica
Stability of the government has helped to maintain a solid and stable currency.
The Costa Rican colon, also denoted as CRC is the official currency of Costa Rica. (Currently $1 USD = 516.245 CRC). Colones come in notes of 1,000 up to 10,000.
US Dollars are also accepted as legal tender in Costa Rica. Both are widely accepted and exchanged throughout the country with approximately 90% of the places of business in the country accepting the US Dollar.

3. Tax Incentives:
This seems to be the one everyone loves! As mentioned earlier the Costa Rican government has created one of the most attractive investment environments in Latin America.

Capital Gains Tax= 0% in Costa Rica. The capital gains taxes are exempt for a business if the money is derived from an activity that is not the normal course of business for the company (This exemption is established through the use of SA, or Sociedad Anonima). Property Taxes in Costa Rica = .25%. This rate is significantly lower than most places in the world. As a result people are buying in Costa Rica which increases demand and ultimately increases value. There are not many places where you can buy a piece of property that has incredible appreciation potential with such low holding costs.
Corporate Tax: The Sociedad Anonima (S.A.) These forms of corporate structures allow owners of property to keep their names away from the corporations they own (literally translates as “anonymous society”). Ninety percent of all property in Costa Rica is purchased through these S.A.’s. When a property owner purchases property through these S.A.’s they use a shareholder’s loan to fund the purchase. Rental income generated is taken out of the corporation as dividend income and deducted against the initial investment and thus no taxes are paid.
Income Tax: Only income generated in Costa Rica is subject to income tax
Costa Rica offers large amounts of income to be deductible and free from any tax.

4. Proximity to Major U.S. Cities:
When investigating vacation destinations and environments for second homes or investment property, it is important to factor travel times to the destination. Costa Rica’s proximity to major US Cities gives even more reason why investors are buying property in Costa Rica. Great tourist destinations need to be close and easily accessible.
Major US Carriers offer direct flights to and from Costa Rica from the following international airports (3-5 hour flight times)
§ Miami
§ Houston
§ Atlanta
§ Dallas
§ Chicago
§ New York
§ Los Angeles
§ Toronto

5. Healthy Local Economy:
For baby boomers and entrepreneurs, spiraling costs of living abroad, oppressive taxes and government regulation in the US have placed Costa Rica high atop the list of places to retire without sacrificing standard of living. This is what savvy investors are looking for!


6. No Ownership Restrictions:
Foreign Ownership is promoted in the country of Costa Rica. In many foreign countries fee simple title is only available to locals and without titled ownership your investments can be at great risk. All foreigners enjoy the same rights as Costa Ricans when it comes to real estate ownership. Titled, fee simple properties are all registered in the National Registry of Costa Rica properly protecting your ownership rights.

7. Excellent Lending market:
Prior to 2006, there was no market for lending in Costa Rica and investors bought and sold property on a cash basis. With the recent surge by worldwide and US lenders as well as the strengthening of the Costa Rican market, financing at reasonable rates is now an available option. This addition to the real estate industry has made it possible for many more investors to buy property in Costa Rica and will only increase the demand over time.
As you can see there are many great reasons to invest in Costa Rica. Many people believe that it is too late to make any money. This is not the case! The time is now to invest in this beautiful country and incredible vacation spot.

Costa Rica Real Estate