The Real Estate Lending Opportunity is NOW
How the Inicio Model Works
Profitable Investment
A real estate investor finds a potentially profitable investment property.
Loan Secured
A mortgage broker/banker loans the real estate investor between 60 and 80 percent of the property’s value. The loan is secured by a first trust deed against the property.
Purchases The Loan
Inicio purchases the loan from the originating mortgage broker/banker.
Protecting The Loan
The real estate investor renovates the property, improving its value and further protecting the loan.
Property Plan
If everything goes according to plan, in 6 to 24 months, the real estate investor sells the property for a profit and repays Inicio’s secured loan.
Foreclosure Sale
If the real estate investor defaults, Inicio Capital forecloses on the property. The 20 to 40 percent difference between the value of the real property and the loan amount provides a margin of safety for Inicio to recoup its principal and any lost interest at a foreclosure sale.
Loan Secured
A mortgage broker/banker loans the real estate investor between 60 and 80 percent of the property’s value. The loan is secured by a first trust deed against the property.
Property Plan
If everything goes according to plan, in 6 to 24 months, the real estate investor sells the property for a profit and repays Inicio’s secured loan.
Purchases The Loan
Inicio purchases the loan from the originating mortgage broker/banker.
Foreclosure Sale
If the real estate investor defaults, Inicio Capital forecloses on the property. The 20 to 40 percent difference between the value of the real property and the loan amount provides a margin of safety for Inicio to recoup its principal and any lost interest at a foreclosure sale.
Inicio Capital Group Mission
By leveraging our experienced management team and the availability of real estate opportunities with strong rates of return, we represent an alternative to other investments that can add diversity to our investors’ portfolio.
We work with investors who want to build wealth in their investment portfolio through a passive income stream secured by first trust deeds and real estate investments.
An Opportunity as Unique as Our Times
Taking advantage of real estate opportunities is the cornerstone of our strategy.
Inicio generates income by purchasing real estate and existing loans secured by first trust deeds on real property from the originating mortgage banker or broker, which provide us with a steady stream of monthly income from the borrower’s interest payments. We use that income to pay our investors an unsecured 4.0% return, plus a portion of Inicios profit, and the difference covers our expenses and our share of the profit.
Understanding the Trust Deed Model
WHAT IS A Trust Deed?
A trust deed is similar to a mortgage and is also used to secure repayment of a debt by creating a lien on real property. Once signed by the real property owner the trust deed is recorded at the county recorders office where the real property is located. The recording of the trust deed encumbers the real property and provides public notice that the encumbrance exists. The recorded trust deed is also the trust deed holders security as a potential purchaser or lender will take title subject to the debt secured by the trust deed unless that debt is paid in full.
WHAT IS A First Trust Deed?
The highest priority private debt in the case of default. When real property is used to back a debt, debts secured by first trust deeds are paid before all other private creditors.
WHAT IS Trust Deed Investing?
HOW DOES Inicio Use Trust Deeds?
The Foundation of Our Investment Strategy
Limited Risk
Investment Strategy
Expertise in Niche
Solid Returns
Economic Trends
Customer Needs
Nimble Approach
We aim to remain nimble enough to change our investment strategy as the market changes. This may mean prepaying the notes held by our investors as market opportunities disappear from one area and emerge in others.
