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 receive predetermined payments monthly and the full loan amount at an agreed upon time. The money is not tied up in the investment for a long period of time. Because these investments are generally short term, once the loan has been repaid, you can immediately invest in another trust deed which generates even more income. When structured properly, trust deed investments generate a steady stream of passive income that the investor can count on.
CLP loans are secured by a first lien on real estate. Borrowers follow strict capital contribution requirements. Experienced trust deed investors should feel secure in their trust deed investment because it is secured by real estate. Trust deed investments give investors control and security.
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. While the stock market can be volatile, investors in the CLP Secured Loan Fund, LLC will find their monies diversified. Trust deeds are not directly correlated to the stock market and can reduce overall portfolio volatility while providing consistent returns.
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.