Common Questions: Questions & Answers

Q: What is the benefit of investing in trust deeds?
A: Diversification and monthly income are two key benefits of trust deed investing. Stocks, bonds and even direct real estate ownership has been challenging for investors in recent years. Diversification into a real estate secured asset, such as a loan secured by a deed of trust with a low loan-to-value ratio, can give you a more secure and consistent monthly income. Wilshire’s investors typically enjoy annualized returns of between 8-10%.

Q: Do I have to pay a load or commission when I invest?
A: There are NO commissions or up-front fees associated with purchasing trust deeds through Wilshire. If you would like Wilshire’s third party servicer to service the loan, there is a 1.40% annualized servicing fee on fixed rate loans. For example, if the fixed rate on the note is 12% and the loan is serviced on your behalf, the annualized interest paid to you would be 10.60%.

Q: Can I withdraw my investment?
A: The maturity date of the promissory note will determine the timing of your withdraw of funds. However, Wilshire can assist in liquidation (i.e. sale) of your note prior to maturity. Wilshire cannot guarantee that it will be able to sell your note or that the amount paid by a third party will be for the face amount of the note.

Q: How do I know how much money I’ve made?
A: As an investor who uses Wilshire’s third party servicer to service your loan you will receive a monthly check along with a detailed statement from the servicer. You may also log into the secure investor section of the servicer's website to review your account.

Q: Is Wilshire Finance Partners regulated?
A: Wilshire Finance Partners, Inc. is a California corporation and is licensed and regulated by the California Department of Real Estate. The license number of Wilshire Finance Partners, Inc. with the California Department of Real Estate is 01523207. You may check the status of our license with the California Department of Real Estate on their website at www.dre.ca.gov or by calling (877) 373-4542.

Q: What kind of return should I realistically expect?
A: Although the fixed interest rate may differ under each promissory note purchased by an investor, Wilshire investors typically enjoy an annualized return ranging from 8-10%.

Q: What information is provided for tax reporting?
A: As an investor who uses Wilshire’s third party servicer to service your loan you will receive a statement detailing all interest payments on your loans for tax reporting purposes.

Q: With Mortgage rates lower, how are you getting so much higher rates for your loans?
A: It is important to remember that Wilshire’s loans are not made to individuals secured by their personal residences. The loans Wilshire makes are to real estate investors on investment properties. Those borrowers use Wilshire’s loans for the following primary reasons:

1. Greater Profits. By using Wilshire’s loans, real estate investors are able to leverage their own capital to purchase additional investment properties. This translates into a greater return on investment and greater profits for such investors.
2. Speed. Because good properties will have multiple interested parties, opportunities can go quickly. Borrowers obtaining loans from Wilshire typically require a loan close more quickly than a traditional bank can fund.

Q: What if a borrower stops paying?
A: If a loan becomes delinquent, the Trustee, on your behalf, will commence foreclosure by filing a Notice of Default (NOD)... and, if the loan is not brought current, you can demand that the Trustee continue to foreclose on the property so that you may be repaid. Repayment can come from the sale of the property to a third party at the trustee's sale or by your obtaining title and possession of the property. Wilshire Finance Partners helps you through the entire process.

Q: Who are your borrowers?
A: Wilshire’s borrowers are typically real estate investors who recognize the benefits of speed, flexibility and leverage in their real estate investments, whether they are buying, rehabilitating and selling properties or capitalizing on the ability to purchase real estate at discounted prices. They are investors who use leverage to capitalize on market opportunities and maximize their own returns.

Q: What are the benefits of using a third party servicing agent?
A: The primary benefit is to ensure that all interest and principal payments are timely collected in accordance with the loan documents and applicable law. Further, a third party servicing agent creates a "check and balance" system with additional protections to ensure that payments received from a borrower are placed in an independent trust account, properly accounted for, and timely remitted to you without involvement of any other party, including Wilshire Finance Partners. These third party servicing agents are required to be licensed with the State of California and their trust accounts are subject to audit and reporting requirements.

Wilshire Finance Partners is licensed to conduct business in California only.

Disclosure: Money invested through a mortgage broker is not guaranteed to earn any interest or return and is not insured. State law dictates that we acknowledge that interest and principal on trust deeds is not guaranteed. No investment is completely risk free and past performance is not a guarantee of future results. Before investing, investors must be provided applicable disclosure documents. Mortgage Broker fees will apply unless stated otherwise. California Department of Real Estate license number 01523207. Equal Housing Opportunity