FAQ
FAQs for Investors
Investing with Linked Capital allows first trust deeds to offer higher interest yields than traditional fixed-income investments like bonds, and are secured by the underlying property as collateral. Investors can rely on a set repayment schedule for predictable cash flow, and first trust deeds provide diversification since they are not correlated with stock market performance. However, it’s important to be aware that investing in first trust deeds carries its own risks such as default and loss of principal, so it’s important to do your research before investing.
Yes, you sure can! This is a very popular vehicle for investing in first trust deeds.
We have retained the leading attorneys in this entire industry and we would take swift action to cure the default. If the borrower ultimately can’t perform, we would foreclose and own the asset. For this reason, as a business practice, we only ever loan on properties that we would be comfortable owning in a worst case scenario. Also, for this reason, we only lend on very conservative LTV’s.
After a consultation to ensure that you understand the vehicle and its underlying risks, you would be on our list of approved investors. As deal opportunities present themselves you will have the option to take down an entire loan or to invest as co-lender on the note. You will know exactly what property you are loaning on and you will have the full underwriting package.
The majority of notes we invest in mature in 12 months. Having said that, they typically do not include prepayment penalties for the borrower.
Linked capital earns a spread between the note rate and the investor rate as outlined in the co-lender agreement.
