Learn why CLP is the Premier Alternative Investment Option for Investors
DIVERSIFICATION WITH A TRUST DEED PORTFOLIO
CLP SECURED LOAN FUND, LLC
Trust deed investors typically receive predetermined monthly payments of interest and repayment of the loan’s principal balance at maturity. Because these investments are generally short term, investors are able to mitigate interest rate and market risk. When a loan pays off, usually after six to eighteen months, one can reassess the then current economic environment before redeploying capital in a new opportunity. When structured properly, trust deed investments offer the opportunity to generate a steady stream of passive income investors can count on.
CLP loans are secured by a first lien on real property. We view the world through banker’s eyes and follow strict guidelines relative to the collateral underlying our loans and the borrowers responsible for repayment. Provided the transaction has been structured properly, trust deed investors are afforded both elevated yields and security of their investment principal.
If you asked most investors to identify their investment goals, it would probably all come down to two objectives: a high rate of return, obtained with low risk to their principal. As the stock market continues to take investors on a roller coaster ride, many are seeking to diversify their portfolios to insulate from stock market volatility. Investors in the CLP Secured Loan Fund, LLC are part of an investment vehicle that is not directly correlated to the stock market.
Our investment objective is to preserve the principal of investment capital contributions and generate attractive risk-adjusted returns by making privately negotiated, high yielding, mortgage investments. We especially seek those investments that we believe are priced favorably in relation to their relative risk.
In doing so, we have developed a robust portfolio of diverse mortgage investments with substantial, sustainable and predictable cash flows.
We pursue those investments that we expect, over their respective anticipated holding periods, will achieve our target yield; an average rate of return of between seven percent (7%) and eleven percent (11%).
TYPES OF PROPERTY
We invest in short-term mortgage loans collateralized by first priority mortgages or deeds of trust on real property located anywhere in the United States, but primarily in the Southwestern United States. The real property underlying the loans we target for investment is primarily commercial properties such as: retail, office, industrial, multi-family, hospitality, self-storage, mixed-use, entitled land, and non-owner-occupied residential properties.
A high rate of return, obtained with low risk to principal. For most investors, this is the formula for success. Ask most experts, and they will probably agree that the best way to achieve both of these sometimes conflicting goals is through portfolio diversification, the foundation of sound long-term investing.
MAXIMIZE GAINS – MINIMIZE RISK
One of the best ways an investor can maximize gains and minimize risk over the long term is to adopt a diversified portfolio that combines multiple asset classes that have low or negative correlation. It is well established that real estate is one of the best-performing, non-correlating asset classes an investor can combine with a portfolio of stocks, bonds and commodities. Among real estate investments, secured deed of trust investments stand out as one of the best options.
Private mortgage funds offer some of the best security of principal of real estate investment because of the ability to control exposure to risk through due diligence while hedging against default by holding property as collateral. In some instances a likely profit in the case of a default can be assured through comprehensive underwriting that transfers the risk to the borrower, not the investor.
Private deed of trust funds offer high rates of return. Borrowers are often willing to pay higher interest rates for expedited decisions. Returns typically range in the high single digits to low double digit returns.
Private mortgage funds possess low correlation with more traditional asset classes, such as stocks, bonds and commodities. Fluctuations in the stock market typically have little or no effect on the success or profitability of mortgage funds.