PRESS RELEASE FOR IMMEDIATE RELEASE Free Booklet "Earn 14% - 18% Annual Interest Investing in Private Mortgage Liens" New Free 28 Page Booklet Offers High Interest Alternative to Low Yielding Bank CDs Contact: Don Konipol at 832.577.8838 or dkonipol@

PRESS RELEASE
FOR IMMEDIATE RELEASE
Free Booklet "Earn 14% - 18% Annual Interest Investing in Private Mortgage Liens"
New Free 28 Page Booklet Offers High Interest Alternative to Low Yielding Bank CDs
Contact: Don Konipol at 832.577.8838 or dkonipol@yahoo.com

If you're retired or saving for retirement, it's likely that your stock-laden portfolio looks a little less invulnerable than it did a couple of years ago. It's possible, too, with interest rates on bonds, money market funds and bank CDs at all time lows, that you're counting on a fixed income that doesn't fully meet your needs.

"If only I could increase my monthly income without depleting my nest egg," you think, "and without losing sleep over the stock market."

Well, there is a way to make this happen: by investing in trust deeds, or private mortgages loans. Simply put, trust deeds are short-term loans to real estate investors secured by the value of the real property as collateral. Investors who invest in trust deeds typically make a 12 to 18 per cent return, paid out monthly, with a minimum investment of just $50,000 and relatively low risk. As a result, they are able to enhance their lifestyle significantly without threat to their principal, or built a large nest egg, safely, in a relatively short period of time.

When you invest in a trust deed, you are in essence buying a mortgage secured by real estate. You receive fixed monthly payments from the borrower based on the terms of a promissory note.

You can invest in trust deeds on your own, lending your money directly to a borrower. But it wouldn't be advisable unless you have the time and expertise to evaluate property and to screen out borrowers, and know your way around the legal maze of real estate transactions.

Or, you can invest in trust deeds through companies that specialize in this type of investment.

By far the biggest attraction of trust deeds is their high yield. Borrowers, often real estate investors, are willing to pay interest rates of 12 percent and higher because they need a quick short-term loan to purchase or refinance a property without the hassles and red tape they may run into at a bank.

Or sometimes borrowers may not qualify for traditional financing at lower rates because of minor credit problems or liens against the property. Or the property may be too small or located in an area that makes conventional financing difficult.

Your protection against default is the property that secures the promissory note. That's why it is so important to invest in trust deeds with a low "loan-to-value ratio."

In other words, the loan should be only for a certain percentage of the appraised value of the property (and you must use a reliable and experienced appraiser). As a guideline, investors should seek loan-to-value ratios no higher than 70 percent for single-family homes, 65 percent for apartments and 65 percent for commercial and industrial developments.

One risk of trust deeds is lack of liquidity - you typically can't get your hands on your principal until the loan is paid off. Trust deed loans often are for a year or two.

Another risk is the possibility of default and foreclosure. True, you are likely to recover your money eventually and even make a profit from the sale of the foreclosed property. But in the meantime you may go months without receiving any interest payments.

That said, trust deeds available through reputable and experienced firms offer an attractive combination of risk and reward.

But what happens in a recession, particularly one in real estate?

If you believe property values are going down 10 percent, you are still protected by having claim to property assessed at a higher value than the loan amount. Of course, if you believe property values are going to go down 50 percent, then you are not protected.

But then many stocks and even some stock mutual funds have gone down 50 percent or more in the past year. That's why many investment advisors consider a portfolio of carefully selected first trust deeds with low loan-to-value ratios and secured by properties in desirable locations to be a much safer investment than stocks. And trust deeds historically have delivered similar or even higher long-term returns, without the nerve-wracking ups and downs of stocks.

Don Konipol, a Licensed Texas Mortgage Broker and Real Estate Broker, and principal of Wolverine Mortgage Partners LLC, is offering a free 28 page booklet "Earn 14% -18% Annual Interest by Investing in Private Mortgage Liens". To receive this free booklet, email Don at dkonipol@yahoo.com, call 832.577.8838 or send fax request to 281.966.1655.

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