Be the Bank ~ Fund Private Mortgages
Earn 11% Annual Yield on SoCal Property
Welcome to "Be the Bank", a Private Loan Placement Program offering Private Mortgage Trust Deed Investment Opportunities, secured by attractive real estate in Southern California.
Our executive team brings excellent experience to real estate investments and private lending. They have acquired, managed, developed and sold almost $2 Billion in residential and commercial assets, including over 18,000 apartment and student housing units, 25 shopping centers and over 100 residential properties ("fix & flip" and ground up spec). They resourced and managed over $800M in equity and debt placements and hundreds of notes.
Robert Robotti (San Diego) and Janice Jay Holland (Los Angeles), as agents of BluEleven Capital Mortgage Capital, serve as Private Investor Placement Managers, meticulously selecting and reviewing each transaction. Ashley Robotti is an Associate Director. Rick Smith leads the Nevada platform for Investor Relations.
BluEleven Morrtgage Capital, CEO, Michael Ahmari (Irvine, CA) and his strongly experienced and dedicated loan origination and operations team handle all aspects of loan origination, processing, documentation, and servicing for all types of Alternative Real Estate Financing.
High-Yield Returns
We provide investors with secure, high-yield investment options: 11% average annual yield.
Short-Term Loans
We prefer short-term loans designed for safety, avoiding long term market variances (one year loans).
Real Property Backed
All investments are secured by real property assets and personal guarantee of borrower.
Strong Equity Cushion
Risk mitigation is enhanced by a substantial equity cushion, a minimum of 35% of market value in equity on every loan, based on maximum loan to value (LTV) of 65%.
Understanding Bridge Lending
Bridge lending provides short-term loans secured by real estate, emphasizing property value and the borrower's financial strategy over traditional banking criteria.
These versatile loans support real estate investors in various ventures, including fix-and-flip projects, property renovations, refinancing existing debts, expediting property acquisitions, and leveraging equity for business needs.
Most properties in our portfolio are in the $1,000,000 to $2,500,000 value range. A 65% loan to value leaves a residual Equity position between $350,000 to $875,000, in this price range. Our record proves that this can be considered as a very safe equity cushion.
This is the Key to become your own Private Banker:
Private Lending is based on a age old, proven underwriting philosophy: to only invest in mortgages that offer a low Loan to Value Ratio (LTV) of 55% to 65% of market value, over a short term (under 18 months).
Unlike conventional bank loans, our lending approach focuses on strong residual equity after upon loan placement and allows flexibility and fast funding for borrowers: the key to safety, higher interest rates and short terms.
Our approval process evaluates the borrower's financial plan and their capacity for repayment by the typical 12-month maturity date.
This is another reason why the 65% maximum LTV is so important. It leaves an opportunity for another lender to step in and offer a refinance of our loan.
In about a third of our loans, the borrowers prepay 4 months in interest to lenders.
Important Notes:
Many of our loans are funded by 2 to 8 private investors, with a $30,000 minimum investment per transaction (this allows investors to spread their portfolio over several properties and have payoffs on a regular basis).
We may allow extensions when the borrower is current with their payments (typically 6-12 month extensions).
Trust Deed Investing Fundamentals
A trust deed is a legal document that establishes a lien on a property to secure a loan. This arrangement involves three key parties: the property owner (trustor), the lender (beneficiary), and a neutral third party (trustee).
Trust deed investing enables private investors to fund short-term loans, generating returns through monthly interest payments from borrowers. All investments are robustly backed by real estate assets.
The inherent safety of trust deed investments hinges primarily on the loan-to-value (LTV) ratio and the borrower's repayment capacity. A lower LTV ratio, which compares the loan amount to the property's market value, generally signifies a more secure investment.
We rigorously maintain conservative LTV ratios of 65% or less, ensuring a substantial equity cushion of 35% or more. This strategy creates a significant safety margin, ranging from $350,000 to over $1,000,000 depending on the loan size, which helps protect private lenders even in fluctuating markets. For context, most U.S. Banks typically offer 80-85% LTV.
Our platform facilitates investments in loans secured by diverse property types, including both residential and commercial investment properties. Each prospective investor/lender is provided with comprehensive property details for review, allowing them to thoroughly assess if a particular investment aligns with their individual goals and risk tolerance.
Important: This is not a fund. Private investors retain full autonomy to make individual decisions on each loan presentation. Our team, Robotti and Holland, conducts thorough due diligence on every submission, which is then presented to each investor in a detailed Loan Summary. This summary includes vital information such as property sales comparables, a property profile with photos, and references to online sites for estimated property values.
Additionally, most of our loans include personal recourse guarantees from the property owner to the lender group, adding another layer of security.
Risk Management and
Investor Protection
We implement multiple safeguards to protect an investment. In the unlikely event of borrower default, we can initiate foreclosure proceedings to recover your investment. Our conservative LTV approach would allow a sale of the property at a discounted price while still recouping your investment, a recovery of any late payments and penalties and potentially generating a profit for you. Our team handles the entire foreclosure process, potentially resulting in you acquiring a real estate asset at a significantly discounted price (based on your pro rata share of the loan funded).
Even if property values decrease, borrowers remain obligated to repay the full loan amount, and significant penalty fees, if late. Our short term note (one year) and our typical LTV ratio of 65% or less provides a 12 month deadline and a substantial equity cushion that helps shield investors from market fluctuations. This conservative approach, combined with a rigorous Servicing platform (RTI) and screening process, creates multiple layers of protection for your investment.
Secured Investments
All loans are secured by real estate assets with conservative LTV ratios and are publicly recorded through Title Companies.
Personal Guarantees
Borrowers provide personal guarantees on every loan. In about 20% of cases, we require a second piece of collateral to reduce risk further.
Property Insurance
Mandatory property insurance protects against physical damage.
Professional Management
A highly experienced staff offers individual Portfolio reports monthly and are at your service on call.
Investment Structure and Transparency
Our platform emphasizes transparency and direct investor control. Each investment opportunity is presented as a "one-off" deal, meaning you're never committed to a pooled investment or fund. You evaluate and choose each specific investment opportunity individually, maintaining complete control over your investment decisions.
The investment structure ensures your funds are handled securely. When investing, your wires go directly to the Title Insurance company based on verified wire instructions. We provide all borrower-signed loan documents for your review before requesting any wire transfers. Your loan vesting (your name, or your company name) appears directly on the property title, not through a fund or any related entity.
For ongoing management, we do not touch any funds, at any time. Your initial investment is sent directly to the Title company and then to an independent Escrow. Th borrowers then make monthly payments which flow through a CPA-audited, Trust Account of the Servicing company, directly to you. This Trust Account requires detailed California Department of Real Estate reporting quarterly, adding another layer of oversight and security to your investment.
Document Review
You, the Investor review all deal details before committing.
Direct Funding
Your Funds wired directly to Title Insurance company (we do not touch your investment funds).
Secured Vesting
Your Investor name or your private entity appears directly on the recorded property Title Report.
Monthly Returns
Interest payments are sent directly to you by the Servicing Company, on a monthly basis. Payoffs are sent to you in full plus the first month arrears payments.
Investment Highlights and Opportunities
Our lending platform specializes in loans ranging from $200,000 to $1,000,000+, all secured by real estate assets. You have the flexibility to invest in a portion of a loan as part of a syndicated investment ("fractionalized note") with others in our investor network. This allows smaller investments for diversity (minimum $30,000 per investor, per loan). This is very common. For these investments, the Servicer acts on behalf of all investors through a mutually signed agreement, so there are no disputes among the private investor group. Regardless of investment size, your name or entity will appear on the recorded Title with Title Insurance protection.
Before committing to any investment, you'll receive comprehensive information about each opportunity, allowing you to evaluate the viability based on hard facts and details. Our coordinated team action handles the entire process, from sourcing, underwriting, and due diligence to documentation and loan servicing, providing a turnkey investment experience.
Our platform offers net returns, to each lender, on second trust deeds of 11% or higher (after loan servicing costs and based on market rates), all secured by real estate. This risk-reward profile makes trust deed investing one of the most attractive options in today's real estate market, especially for investors seeking passive income with strong collateral backing.
First Trust Deeds
Loan sizes ranging from $500,000 to $1,000,000.
Primary position on property title.
Low risk profile with low, LTV Interest rates currently at 9-10%, case by case basis.
Second Trust Deeds
Loan sizes ranging from $200,000 to $1,000,000.
Secondary position behind first mortgage.
Higher yields (11%+) compensating for junior lien position, but still cumulative LTV below 65%.
Track Record
Over $100,000,000 in total loans funded.
More than 300 loans closed to date.
Over 200 loans successfully paid off.
Problem loan rate less than 2%.
The Investment Process
Our streamlined investment process is designed for clarity and efficiency, ensuring you have all necessary information before making investment decisions. The process begins with our internal team consolidating and analyzing all data from loan submissions to present comprehensive investment opportunities to potential investors.
Deal Analysis and Presentation
Our internal team consolidates and analyzes all data from loan submissions to present comprehensive investment opportunities. We conduct thorough due diligence on the property, borrower, and market conditions to ensure the investment meets our strict criteria. Speed is a key objective for most borrowers and for many, especially with business purposes, this is the main reason they pay higher interest rates.
Investor Review and Approval
You'll review all details of the deal thoroughly before providing your approval. This includes property information, borrower financials, loan terms, and risk assessment. We encourage investors to ask questions and perform their own due diligence during this phase. Online valuations, like Zillow and Trulia, are getting more and more accurate, especially showing recent, nearby comparable property sales activity.
Loan Processing and Documentation
Once terms are finalized, our network of service providers handle the entire loan process, including title search, escrow setup, loan document preparation, and other administrative tasks, ensuring all legal requirements are met and your interests are protected.
Funding and Closing
After reviewing all documentation, you'll wire funds directly to the Title company as the final step before closing. The Title company verifies all conditions have been met before disbursing funds to the borrower and recording the trust deed.
Ongoing Management and Reporting
Throughout the loan term, you'll receive monthly interest payments and detailed portfolio reports from the Servicing company and our staff. The loan servicing team monitors borrower compliance and addresses any issues promptly to protect your investment.
Getting Started with Trust Deed Investing
Beginning your journey with trust deed investing through our platform is straightforward. Our team, brings years of real estate experience to guide you through the process.
To explore current investment opportunities, you can contact Robert Robotti directly at 310-429-6800 or Janice Jay Holland at 310 864-1445. We'll provide information about available trust deed investments that match your investment criteria and risk tolerance. Each opportunity comes with comprehensive documentation and analysis to help you make informed decisions.
Trust deed investing offers a compelling alternative to traditional investment vehicles, providing secured returns backed by real estate. With our combined platform with RTI's servicing and operations team we offer transparency, professional management, and strong track record in funding, you can confidently diversify your investment portfolio while generating attractive passive income.
11%+
Net Returns
Typical yield on second trust deed investments after servicing costs
65%
Maximum LTV
Conservative loan-to-value ratio providing substantial equity cushion
$100M+
Recent Funding
Cumulative loan volume demonstrating extensive market experience
By partnering with our platform, you gain access to a proven investment strategy that combines attractive yields with the security of real estate collateral. Our full-service approach handles all aspects of the investment process, from sourcing and underwriting to servicing and, if necessary, recovery, allowing you to "Be the Bank" without the operational complexities.