Interest Rates – For many years our company has had to wear 2 hats, one is our borrower hat and the other’s our investor hat. Since we stand in between a borrower in need of funds and an investor looking to invest their money we need to always remember that we must serve the needs of both parties. It is a challenge to balance the needs of both parties in the quest to satisfy the needs of both parties.
In this Blog Post we want to focus on the needs of our investors and what needs to done to provide a safe trust deed investment. The overriding determinant for a safe investment had always been and will always be equity. Equity is the borrowers’ interest in the property. Basically the difference between loan and lien balances recorded against the property and the market value of the property. A Borrower who has a lot of equity in their property just seen to sleep better at night, and the same goes for an investor who as loans on a property that has a lot of equity. Basically it’s safe to say that equity is a good thing for both borrowers and investors alike. Interest Rates.
In the old days equity could be used as the one determinant in deciding to fund a loan. But in today’s world there are many laws and regulations that the state of California has passed into law that has done away with relying on equity as the only determinate. Interest Rates