Trust Deed Investment Disclosure
Trust Deed Investment Disclosure
Equity Coalition Loans takes careful measure in order to ascertain the suitability of all loan applications. Our success depends on our ability and track record of placing investors in trust deed-secured loans that perform as promised. Our care and concern notwithstanding, it’s imperative that you understand and acknowledge the role and relationship between you, the investor, and us, the broker.
Please read all of the following sections. If you understand each section in its entirety and agree to the terms, conditions, and disclosures set forth in it, please initial where indicated. Primary and secondary account holders must initial. If for any reason any part of this agreement is unclear, please consult with an attorney before proceeding.
1. Equity Cioalition Loans (hereafter “Broker”) will provide information to you regarding specific Trust Deed investments. We encourage you to review all the information that you receive from Broker including, but not limited to, the subject property appraisal, property condition, borrower’s financial statement, borrower’s credit worthiness and borrower’s past project successes. You are responsible for requesting all information about any specific Trust Deed investment. You are aware that information provided by borrowers, third party brokers, or other parties to Broker generally cannot be authenticated by Broker.
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2. Trust Deed investments may not be suitable for all investors. By acknowledging this disclosure and agreement, you hereby declare that you and/or your investment entity is of suitable and substantial means to invest in Trust Deed investments and that a total or partial loss of investment capital, interest income, and/or a temporary or permanent cessation of interest payments will not create a financial hardship for you or your investment entity.
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3. Trust Deed Investments inherently have a number of risks. Any number of these risks may cause a loss of some or all of the principal investment and interest, and/or the temporary or permanent cessation of all interest payments. Broker does not guarantee nor secure any investment. Trust Deed investments are not insured by the FDIC or any other government agency.
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4. Broker and its affiliates stand to have a significant monetary gain in funding Trust Deeds through private investors. Broker will not make any investment decisions on behalf of its investors nor will it offer investment advice, especially with regard to any offering presented to its investors. Each investor is required to perform his/her own due diligence in regard to a Trust Deed investment offering. Each investor is responsible for determining the suitability and quality of each investment in his/her portfolio on its own merits and apply his/her own opinions, research, and/or advice from other investment professionals not related to Broker and its affiliates. By signing below you hereby agree that all investments made through Broker are at your own discretion and that you understand the inherent risks involved in all Trust Deed investments. You hereby agree to address any and all concerns you may have regarding any issues pertaining to any and all Trust Deed investment offerings with an attorney or financial advisor.
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5. By acknowledging this statement you agree that you have not been coerced, forced, or guaranteed results in order to invest in Trust Deeds. Other than for willful misconduct or gross negligence, you hereby hold Broker and its affiliates harmless of all responsibility and liability regarding the performance and quality of all Trust Deed investments you decide to make.
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6. I understand that there are certain costs associated with the process of loan origination, loan servicing and default proceedings. I understand that Broker will charge a fee to originate the loan. I understand that the fees associated with loan origination will be paid by the borrower.
I further understand that Broker will be the sole recipient of any and all administrative and inspection fees for a loan as stated within the respective promissory note. More specifically, Broker shall, as part of its compensation, receive all ancillary income such as payoff fees, substitution fees and reinstatement fees. Unless otherwise stated herein, investor(s) is not entitled to receive any share of any commitment fees, application fees, underwriting fees, extension fees, service fees, administrative fees, exit fees, or other fees or commissions payable to Broker in connection with the Loan and any such fees received by Broker shall be retained for its own account. In addition, and more specifically, Broker shall be entitled to receive the mortgage origination points listed on the HUD-1 Settlement Statement.
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7. I understand that in order to comply with California state regulations, Broker will enlist the services of a third party loan servicing company for purposes including the billing and collection of monthly interest payments, holding and disbursement of any loan holdbacks, issuing Form 1098 tax statements and, if necessary, collection and foreclosure services. The Loan Servicing Company’s fees are paid by the borrower and will not reduce the rate of return initially promised to me. I agree to give the Loan Servicing Company the exclusive right to handle any foreclosure activities. A majority comprising of those who hold more than 50% interest of a loan have the right to appoint a servicing company of their own choosing.
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8. I understand that Broker may collect a fee from the yield of the promissory note. This fee is charged to the borrower above the yield promised to me. The yield initially disclosed to me by Broker WILL NOT change. This fee shall be collected from each and all of the monthly payments required under the Note until the entire balance of the loan is paid off in full.
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By signing below I acknowledge that I fully understand and agree with the terms, conditions, and disclosures herein.
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Primary Investor’s Printed Name Primary Investor’s Signature Date
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Title (If signing for a legal entity) Entity’s Legal Name
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Secondary Investor’s Printed Name Secondary Investor’s Signature Date
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Title (If signing for a legal entity) Entity’s Legal Name
Equity Coalition, LLC, 900 Mission, Street Suit B, San Rafael, CA 94901
(415)-680-3454