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ATrusted AS Investment Alternative EVEN BEFORE THE PUBLICATION OF ADAM SMITH'S AGELESS BOOK "THE WEALTH OF NATIONS" (1776), FREE-MARKET CAPITALISM DICTATED THAT MONEY CAN BE EARNED IN ONE OF TWO WAYS: THROUGH LABOR (WORKING) OR CAPITAL (INVESTING). AT A TIME WHEN BANKS AND THE STOCK MARKET ARE PRESENTING LESS-THAN-FAVORABLE OPTIONS FOR INVESTORS, TRUCKEE MEADOWS-BASED NEWMARK INVESTMENT AND LOAN OFFERS INVESTORS A TRIED-AND- TRUE AVENUE FOR BUILDING A SOLID FINANCIAL PORTFOLIO: TRUST DEED INVESTING. DARREN K. PROULX (rhymes with "true"), President and broker at NewMark Investment and Loan (Newmark) explains, a trust deed (also known as a mortgage) is a secured loan against a piece of real estate. Typically, the amount of a trust deed loan arranged by Newmark is about or something less than 65% of the property's appraised value. This equity motivates the borrower to repay the loan and protects the investor in case of default. Then, at the worst, should the borrower fail to repay the loan, the investor can foreclose and become the owner of the property at a fraction of its fair market value. Trust deed investing is not a new practice. In fact, this type of "private loan" arrangement has experienced a strong revival in recent years as a result of the current market conditions. Proulx says, "Banks aren't paying attrac- tive rates of return, and the stock market is very unpredictable and stressful. Plus, another key ingredient that makes private lending attractive is the fact that banks are not lending and the availability of bank credit has been severely restricted. That combination of hard-to-earn interest rates and banks not lending creates a real opportunity for private lenders." Hard-Money Lending for Hard-Working Investors Trust deeds carry multiple advan- tages when compared with other forms of traditional investment. The lender receives an attractive rate of return, while not being burdened with loan- management responsibilities. Trust deed investors also enjoy the protection of having the loan secured by a hard asset. Interest-rate yields to the lender are typically 9.5% per annum and, in some cases, higher. Rather than loans based solely on the borrower's credit (which can change from day to day), Newmark's loans are based on the value of the actual asset and, as such, these loans offer the lenders a much safer return at a very attractive interest rate. Proulx explains that this kind of loan investing is well-suited to professionals who want to ensure their investment dollars are as hardworking as they are. "The time will come when the profes- sional's income source changes from providing 'labor' to 'capital-based income.' So, ensuring investments are safe but at the same time earning an attractive rate of return is essential. Trust deeds can provide that opportunity," Proulx says. Should an investor want to explore becoming involved in trust deed +++++++++++++++ +++ +++ +++++++++++++++ FINANCE + + Is your money working as hard as you do? investments, Newmark maintains a "Preferred Client List" through which it communicates the arrival of any and all new loan opportunities. An "alert email" typically contains basic information about the property itself and the terms of the loan. At an investor's request, Newmark then sends out a due-diligence package, which includes a property appraisal and details specific to the loan and borrower. Then, if an investor desires to participate, his/her/their funds are wired to the designated escrow company. A local title insurance company then ensures that the lender is on the title to the loan. To schedule a private consultation in person or via telephone, call (775) 358-4425 or email darren@newmarkinvestment.com. Watch a special message at www.newmark investment.com/mdnews. Newmark Investment and Loan, Inc. is licensed by the State of Nevada Mortgage Lending Division #3644 and by N.M.L.S.# 37963. The State of Nevada Mortgage Lending Division requires the following disclosure for all trust deed investors who fund loans: "Investors are not guaranteed any interest or return, and the investment is not insured." The investment is secured by real estate and, in the event of default, the investor has the right to foreclose. "Investors must be given applicable disclosures" and must be accredited and show proof of the ability to invest. ■ MDNEWS.COM ■ MD NEWS Reno/Tahoe/Carson City | 5