Safeguard 2015 Update and Projections
It's a new year and the U.S. economy, according to some people, is on the rebound.
But...a closer look tells us that the rest of the world has a whole raft of negative circumstances to deal with which will likely impact the U.S. in unexpected ways at some point this year.
So, without benefit of a crystal ball, we'll just leave the complexities of the global economy to the "so-called experts" and try to stay focused on what is best for our own portfolios.
To keep it simple, we focus on one thing and, only one thing...being a private mortgage lender for investors/borrowers who want to own single family rental properties in their investment portfolio.
And, while we think that owning income-producing rental property is a good thing, we believe being the lender can be even better.
2014 Performance - $20,000,000 in 1st Lien Trust Deed Notes
In 2014, roughly $7 million dollars worth of new notes (backed by the security of income-producing real estate) were acquired by Safeguard client investors. At 9% interest, this equates to $630,000 of annual interest earned.
Overall, Safeguard clients now hold more than 400 notes valued at approximately $20,000,000, with annual interest payments totaling $1,800,000 or $150,000 per month.
Because of our extremely conservative underwriting guidelines that require a borrower to put down 50% of the purchase price of a property in cash, there have been "0" defaults on these loans.
Monthly note payments are now processed through a customized third party payment system that automatically drafts the borrower's account for an ACH direct bank to bank transfer to the lender's account.
If a payment is late, the system sends an email alert to us, and to the lender, and we are able to resolve late payments in a minimum amount of time. Frankly, we only deal with 5 or 6 late payments per month and 99.9% of the time we have been able to resolve issues within a day or two.
2015 Projections - $30,000,000 in 1st Lien Trust Deed Notes
Based upon last year's performance and the increasing demand for 1st lien trust deed investments, we project that our clients will acquire about 200 new notes in the coming year. This equates to about $10,000,000 in note value with annualized interest payments of $900,000.
So, by the end of 2015, we expect our clients to be holding a total of about 600 notes valued at over $30,000,000, producing $2,700,000 in earned interest on an annual basis.
At 50% loan to value (LTV), that means properties totaling more than $60,000,000 will be financed by our clients.
Trust Deed Note Inventory
Currently, our inventory of notes is about on par with demand. Occasionally, we'll have a short waiting list.
Please contact Brandon Reed, Director of Operations, for updated information on note availability. You can reach him at 877-280-5771 x240 or email brandon@safeguardcapitalpartners.com.
Best Regards,
Robert Hubbard
Managing Director
Safeguard Capital Partners
A Morningstar Holdings, LLC Company
www.SafeguardCapitalPartners.com
Office: 877-280-5771 x225
Email: robert@safeguardcapitalpartners.com
