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Frequently Asked Questions

 

Frequently Asked Questions


Why should I invest with Good Deed Investments (“GDI”)?
Today and in the future, local economists agree that real estate in Southern California, Nevada and Arizona continues to be a good place to invest. Many investors are looking to diversify their portfolios and include up to 20% of their portfolio in real estate. GDI has several investors that invest 100% of their portfolio in real estate. Based on GDI’s investment philosophy of loaning at low LTVs of their portfolio (i.e. 70% or lower), short term (i.e. typically 12 - 18 months) and on commercial real estate the firm has been able to offer double digit return which are secured with real estate at excellent LTVs. In fact, one local real estate economist has verified that never in the history of Southern California has real estate fallen greater than 30% in any two year period. Our responsiveness, disciplined underwriting approach, knowledge of Southern California, Nevada and Arizona real estate, extensive partners and affiliates equals an unbeatable combination.

How does Good Deed Investments (“GDI”) get paid?
GDI charges loan and processing fees which are paid by the borrower. Investors are not charged fees to complete the loan.

What information do investors see prior to making a funding decision?
Investors will be contacted about deals that they have expressed interest in. One of our principal brokers will explain the deal overview. The investor can then decide if they would like to see a deal overview package. GDI’s investment package typically requires the following documentation; Preliminary title report, purchase/option agreement, borrower documentation, opinion of value or appraisal if available, designs and construction breakdown if applicable, copies of deeds and notes and pictures of the property.

What is Good Deed Investments (“GDI”) track record?
GDI funds millions of dollars of loans each year and has never lost a penny of investing principal or interest.

Who does the loan servicing, fund control, etc.?
GDI will perform the loan servicing on behalf of the investor for a 1.5% fee of the loan amount/year. However, most of GDI’s investors feel comfortable doing their own loan servicing. GDI has partnership with several companies whose business is loan servicing, fund control, foreclosure,etc. GDI will make introductions to our partners as desired.

What happens if I have to foreclose?
If in the unlikely scenario that a foreclosure is required, GDI has a partnership with one of the premier foreclosure firms in California. GDI stays with our investors through any and all issues that may arise from the loan. Typically, GDI will find new money or negotiate an extension which earns additional fees for investors or GDI will implement any one of a number of potential options to service and stand by our investor.

How much does each investor have to invest?
We require a minimum of $500,000. We rarely see investment opportunities below $500,000. Most deals are in the $500,000 to $3 million range. We regularly have investment opportunities over $10 million.

What are Good Deed Investments (“GDI”) loan guidelines?
Here are GDI’s loan guidelines:

  • Loan to Values (LTV’s). Capped at 50% for land, up to 65% for Development, Vertical Construction up to 70% and Bridge up to 70%. Some investors who have a keen interest in the property or borrower from time to time will loan at higher LTVs.
  • Terms. Most loans are made for a 12-18 month term.
  • Loans fees. Paid by the borrower.
  • Geographic focus. Primarily Southern California. However, GDI does complete transactions in Nevada and Arizona.
  • Size. Typical loan size is $500,000 to $3 million. We regularly see investment opportunities over $10 million.
  • Interest Rates. Typically 10-15%

What do I need to do if I want to become an investor?
At GDI, we want to personally meet with each investor to understand their profile so that we can properly funnel relevant deals to them. For example, we have developed a proprietary “AAA” (i.e. Appetite, Affinity and Action) evaluation process for each new investor. One of our principal brokers meets with each prospective investor to understand their:

Appetite. How much does each investor have to invest? We require a minimum of $500,000. We rarely see investment opportunities below $500,000. Most deals are in the $500,000 to $3 million range. We regularly have investment opportunities over $10 million.

Affinity. In what types of loans do you like to invest? Do you like to loan on income-producing properties, land or other types. This is important for us to know so that we can funnel the right deals to you quickly.

Action. Can you have funds available within less that 10 business days of making a commitment to fund? This is important because the right deals go quickly and the borrowers require funds quickly.

Feel free to complete the investor form or email Mike Flood at mjflood@gooddeedinvestments.com.