Even modest IRA balances can easily accommodate a starting investment into one of our mortgage pools. And in following years, additional investments can be as little as $2,500 - less than half the total contribution for most investors.
San Francisco, CA (PRWEB) October 7, 2009
Sterling Pacific Lending, Inc dba Sterling Pacific Financial (http://www.sterlpac.com), a leading trust deed investment company, is pleased to announce its new investment program for self-directed retirement accounts. Sterling Pacific's Mortgage Pool Program for Retirement Investors puts the benefits of private loan investing within reach of more retirement investors and makes investing in these time-tested, income-generating investments easier than ever before.
Qualified investors can now invest IRA funds in either of Sterling Pacific's two mortgage pools - The Foundation Fund, LLC and The First Floor Fund, LLC - with a starting investment of just $5,000. These new entry level investments - reduced from the $25,000 normally required for non-IRA funds - allow for diversification of even modest IRA balances into relatively secure, real-estate-backed notes.
"We've been delighted to see many self-directed retirement investors considering trust deeds to better diversify their retirement portfolios," said Joshua Fischer, managing director and principal of Sterling. "However, high investment minimums have kept some IRA investors on the sidelines because of portfolio balancing concerns. Our new program aims to solve that problem."
Even high-net-worth investors can be challenged to maintain diversification in their IRA portfolios, since contributions are subject to annual limits. EBRI recently reported that the median IRA balance is $28,955 for all age groups, and many sources estimate that even among those 65 and older, the average balance is just over $100,000. For investors wanting to avoid over-weighting a single category, this can make true diversification a challenge, since the entry level for investments outside Wall Street is often $50,000 or more. Ironically, this can discourage diversification beyond the stock market - even though many experts believe such diversification is more essential than ever for rebuilding retirement portfolios.
"With a starting minimum of just $5,000, our Mortgage Pool Program for Retirement Investors addresses this issue head on," Fischer explained. "Even modest IRA balances can easily accommodate a starting investment into one of our mortgage pools. And in following years, additional investments can be as little as $2,500 - less than half the total contribution for most investors."
Sterling Pacific's mortgage pools offer many features that are ideally matched with the goals of IRA investing. Over their history, the pools have returned an average yield over 10% per year - even during the recent stock market downturn. These yields - paid out monthly - can be automatically reinvested in the pool, creating the compounding effect that is so beneficial for long-term portfolio growth. Alternatively, the yields provide free cash to the IRA that can be invested in other opportunities immediately.
Choosing a mortgage pool - which is similar to a mutual fund for private loan investments - is also an easy, more foolproof way to invest in trust deeds for the first time. Because each investment is spread across all the loans in the pool, risk is reduced through diversification.
"We're extremely proud of the track record of The Foundation Fund, LLC and The First Floor Fund, LLC," continued Fischer. "These pools have set a standard for the industry in terms of investor results as well as communication and service to investors. We're very pleased to make the benefits of the pools available for retirement investing through this new program."
To take advantage of the Mortgage Pool Program for Retirement Investors, investors need to maintain their IRA with a self-directed IRA custodian. For investors without a self-directed custodian, Sterling Pacific provides links to many options on the firm's web site. Detailed information about the company's mortgage pools is available as well, at http://www.sterlpac.com/investors/mortgage_pools.html.
About The Foundation Fund, LLC and The First Floor Fund, LLC
Sterling Pacific Financial offers retirement investors two mortgage pools, The Foundation Fund, LLC (open to California residents) and The First Floor Fund, LLC (open to US citizens). The pools invest primarily in short-term, commercial real estate loans, most of which are secured by property in California. The funds have target yields of 10-11% and 10-12%, respectively. Investor suitability criteria apply, based on California standards for The Foundation Fund, LLC and national standards for The First Floor Fund, LLC.
Sterling Pacific Financial engages Armanino McKenna, LLP as the third party auditor of its mortgage pools on behalf of its investors. The largest CPA firm in California, Armanino McKenna is also a recognized nationwide leader in the mortgage pool auditing and accounting.
About Sterling Pacific Financial
Sterling Pacific Financial (http://www.sterlpac.com) is a leader in trust deed investing - a simple means for individuals and organizations to invest in real estate loans, earning high returns without proportionately high risk. Led by an investment team of experienced real estate and financial professionals, we identify high-quality loan opportunities, underwrite and service the loans, arrange and manage investor participation, and collect and distribute investor payments.
A California-based firm with personnel in the San Francisco Bay Area, Greater Sacramento, the Central Valley and the Central Coast, Sterling Pacific has provided an efficient marketplace for timely financing of select real estate projects for more than a decade. The firm is a licensed real estate lender in California, Oregon, Texas and Washington. The firm's operations center is in Santa Cruz County, California.
In addition to the investor and borrower information provided on its web site at http://www.sterlpac.com, Sterling Pacific Financial provides commentary and information of interest to investors and borrowers on its blog at http://www.sterlpac.com/blog.