1ST TRUST DEED’S IN ECONOMIC SLOW DOWN

BECOME A LOAN LORD. With an apparent shift in the economy interest rates will reset lower so the CD rates will come down too! If you take the time to understand how first trust deed notes work you can weather the coming economic cycle well. Remember the Three C’s when shopping for notes.  Credit qual­ity and capacity to pay are just as important as collateral. Gold Country Commonwealth can find the safest possible deals, while investors need to be flexible on location and term. We do the leg work for you and ensure that you open your mail with a smile.

DIVERSITY OF TD NOTES. As the economy weakens some areas of the country are going to be hit harder than others. Areas that will be hit hardest like those with high foreclosure rates, areas of major building downturns and unem­ployment rates rising should be viewed closely before investing. The wise trust deed investor will own one note in a good business community like San Jose and Sac­ramento one by a college campus and one in a solid retirement com­munity. So even if the downturn comes harder than expected your portfolio is protected.

DIVERSIFICATION OF NOTE PAYORS. Two notes to the same borrower(s) in the same profes­sion don’t make sense. Stay away from anyone in the real estate industry as borrowers, the cycle forces these to be unreliable.

ECONOMY WEAKENING

The economy based upon recent consumer confidence figures is showing a mild recession. Unemployment spiked this month, and consumer confidence has fallen to 88.6, which is well below the long-term average of 98.6. The Fed knows it should have lowered rates last year and will more than likely lower them at their next meeting. The 30-year fixed mortgage rate ended the month of November at 6.17%, while the one-year adjust­able rate stood at 5.53%. The Federal Reserve benchmark interest rate cut in December to 4.25% is believed to be followed by a further cut in  January.

BECOME A NOTE INVESTOR?

IS THIS A SUITABLE INVESTMENT? Not everyone is suited to invest in first TD notes from Gold Coun­try Commonwealth. To be suitable you should have and annual income in excess of $30,000 and a net worth exclusive for your home, furnishings, and autos in excess of $100,000. In addition, investing in first trust deeds does involve certain risks. Please contact us to receive a free copy of our Note Guide Booklet outlining important aspects of note own­ership including risk factors.

JOKE OF THE DAY

True Story! When my daughter was a little one I asked her a question. I said, “Who do you like the best Mommy or Daddy?” She said, “Mommy because I came out of her tummy!” Ouch!

SIMON GRANVILLE AT GOLD COUNTRY COMMONWEALTH

(877) 795-9282 R.E. Broker Lic. # 01818669 Calif. Dept. of R.E.