INVESTMENT PROGRAMS
For investors who wish to particapate in a large diversified portfolio of auction properties, tREO created a family of investment funds that offer turnkey acquisition and managment sevices over a one year acquisition life cycle. Members can only be accepted in full compliance with subscription agreement associated with PPM and “we must have a pre-existing relationship”. See Fund Management Menu for more information.
In this program, we inform qualified, registered buyers of deeply discounted properties available for sale each day ($150,000 – $1 million). As the buyer, you pay for the asset in cash the day of purchase and you own and control the asset 100%. It’s a ‘do –it-yourself’ program choice. We charge a modest fee for our auction/bid services. tREO acts as a property provider for a fee and offers a menu of asset management services. tREO may participate as equity or debt provider.
You select the property acquisition guidelines. We acquire the targeted asset with tREO funds, and then assign it to you in exchange for your funds the next day. You own the property 100%. We do all of the work as agreed in a “turnkey” operating agreement, including the tenant negotiations, asset management, loan sourcing, and the resale process. In exchange for these services we charge modest fees and earn 20% share of the overall net profits. Upon resale, you receive your investment and an 80% profit share. Rollover investments average every 4 months.
Lender clients fund 1st trust deeds on auction purchases for 9%-10% fixed interest rates, depending on LTV (loan to value). Most loans offer LTV’s in the 60%-70% LTV range. Payments are made on monthly basis with a one year term. Loans vary in size between $200,000 to $400,000. Loan documents, escrow, title and servicing are provided by 3rd parties at lender’s option.
Mezzanine Loan/Profit Share Program (D’Equity)
You can choose to be a lender on the properties acquired in the above programs in a recorded (on title) 2nd Trust Deed position, at a maximum of 75% loan to appraised, market value ratio. The monthly, fixed interest rate is at 12% annualized plus you earn 20% of the net profits on the asset.
tREO places all the operating equity, for carry costs, rehab, etc. and tREO is in a First Loss position to reduce your risk further. Your investment is documented daily on QuickBooks Online, so you can watch the daily progress of your investment from acquisition to re-sale. Loan Servicing is provided by an independent, third party. Many investors start in this program and then become buyers of properties when they are comfortable with the performance of their lending/property experience.