The IRS requires a specific type of loan, called a non-recourse loan, for self-directed IRA borrowers to purchase real estate. This is a secured loan – in this case with the collateral of the rental property. At IPX, we want all parties (the borrower, lender, and trustee) to win so we’ve designed proven procedures to make that happen in both good times and not-so-good. In the worst case scenario, if the borrower defaults, the lender can seize the collateral or property.
Deeds of Trust boosted cash flow and net worth for this investor
Are Deeds of Trust safe?
Not all trust deeds are created equal. At IPX, we’ve designed safeguards into our program. You’re lending on renovated, occupied investment properties - not distressed, empty properties. You’re protected since the rental income exceeds the mortgage payment. Plus we reduce costly management issues with our professional property management. Also, we keep our eye on the end game with a well-defined exit strategy for our rental property investors. We’ll sell the property at the right time or help the rental property investor refinance.
For additional protection, trust deed investors can sign up for our Foreclosure Mitigation Program (FMP) where we’re obligated to pay the borrowers’ mortgage if there is ever a missed monthly payment. Also, we’ll pay the interest and principal of the trust deed loan.
How do I benefit?
IPX provides trust deed investors with a consistent supply of income. Whether you have $100,000 or $1 million, you earn 9% annual return on your investment capital. We’re committed to ensuring your investment capital continues to work for you –we have options for reinvesting.
Our Foreclosure Mitigation Program (FMP) offers additional safeguards others don’t.
Also, you benefit because we handle every detail in house. Trust deeds are not complicated at IPX. We find better properties for acquisition, manage the rehab and sell the house. We don’t charge you service fees or closing costs. We, like you, have skin in the game on every project and have a vested interest to make sure each project is profitable. You always have direct access to us and what is going on with your money.
Do IPX Deeds of Trust differ from deeds offered by other companies?
Yes – because we’ve created a Trust Deed Investment Program where “investors help investors” and everyone wins.
The IPX program is unique because we help clients invest in trust deeds secured by renovated, occupied and professionally managed properties. We purchase distressed properties (usually before they hit MLS), renovate them, find quality tenants, and place them under our professional property management. Next, we sell these turnkey properties to an investor client. Most clients purchase using their self-directed IRA with checkbook control so they need specialty non-recourse financing which we are happy to arrange with our trust deed clients. This loan is arranged at 9% annual interest, for two years. Our investors appreciate the cash flow from this mitigated risk investment.
The majority of firms offering trust deed investing are brokers and financial lenders. Basically, they are middle men who loan your money to people doing the field work of buying, rehabbing and selling property. You have no choice in who gets the benefit of your money – so there’s much more risk in this type of investment. Instead, our Trust Deed Investment Program offers loans on renovated, occupied properties under professional property management
Also, brokers and lenders often eat into your profit by charging additional “Service Fees” or “Closing Costs” on capital invested. We don’t.