 There are numerous
differences between a "Loan Trust Deed" and the way the Equity Rescue Program uses a "Performance Trust Deed ". Below we've summarized and compared some of the
important use differences. This comparison illustrates how the "Trust Deed Pledge Plan " can be used to produce a more attractive, secure and rewarding investment.
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Loan Trust Deed
Results vary as loans can earn single digit returns and double digit
returns. Loans can also suffer very large loses when a borrower defaults.
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vs |
Trust Deed Pledge Plan
Offers a pre-agreed, fixed bonus reward of 42.5% of the amount invested. The investor's bonus reward payment is secured at the start of the investment.
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| Collateral Difference |
Loan Trust Deed
Only one property equity protects the funds. If the owner does not pay the monthly payments the property equity can diminish in value. |
vs |
Trust Deed Pledge Plan
Property title
and a substantial cash reserve are used as collateral to protect the
invested funds. The collateral cannot dimish. Acquisition of additional properties increases the amount of collateral. Together they exceed, by far, the amount of security
that a typical trust deed loan offers. |
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Investment Time Difference |
Loan Trust Deed
The average length of an equity loan, trust deed investment is three (3) to five (5) years. |
vs |
Trust Deed Pledge Plan
For each investment the time frame is approximately one (1) year or less. The timing can shortened even further with the use of the accelerated investment program. |
| Monthly Loan Payment Difference |
Loan Trust Deed
The borrower is responsible for the loan payment and can become unreliable
or even default when additional debt is incurred. |
vs |
Trust Deed Pledge Plan
The Equity Rescue Program has a large, preplanned cash reserve fund available which, if needed, can be used to make the loan payments and keep the loan current. |
| Reserve Difference |
Loan Trust Deed
To guard against the loan security from being "wiped-out", a
prudent lender is required to keep a large cash reserve fund. |
vs |
Trust Deed Pledge Plan
There is no requirement to maintain a cash reserve. Beyond the original investment no
additional cash is needed. The investor holds a legal position that prevents an additional cash request. |
| Finding The Opportunity Difference |
Loan Trust Deed
It takes the investors personal time to locate, research and contract with each borrower, thus the
funds are often idle and earn less. |
vs |
Trust Deed Pledge Plan
The funds can be contracted for reinvestment into additional Equity Rescue opportunities. No personal time is required to participate in the acceleration of bonus earnings and capital growth. |
| Foreclosure/Bankruptcy Difference |
Loan Trust Deed
Nonpayment can create legal problems such as foreclosure
or bankruptcy which are very costly, time consuming and can severely diminish the lender's bottom line. |
vs |
Trust Deed Pledge Plan
The legal position held by the investor prevents a foreclosure or bankruptcy from affecting the investor. |
Capital Requirement Difference
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Loan Trust Deed
Time is money and it requires the investor's personal time to locate, research and contract with each borrower. The investor must then supply all the funds. |
vs |
Trust Deed Pledge Plan
No time requirements. Participation requires $60,000 however the investor can join an investment club and participate with smaller amounts. |
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