INVESTORS

Frequently Asked Questions

Here are the most frequently asked questions aimed at us and our services by investors.

• How much money do you need to start? What is the minimum investment? LBC Capital Fixed Income Fund is presently seeking private money sources with $25,000 as a minimum to begin. You must be an accredited investor.

• How often do you make distributions? Dividends are distributed monthly.

• Do you offer distribution reinvestment? Yes.

• Are IRA funds allowed? Yes, IRA funds are allowed. LBC Capital Fixed Income Fund actively places funds from Self-Directed IRA accounts and funds of other private retirement funds. Nevertheless, you should contact your plan representative, because many IRAs use different rules and policies.

• What is the annual yield for investments? Our fund offers a preferred Rate of Return of 8% per year. It is not uncommon for the actual return to be higher.

• How safe is it to invest with you? It's important to take note that all investments are inherently risky. Nevertheless, unlike other investment options, trust deed investing is a unique program that allows the private lender to own a real estate via a first trust deed, which in turn ensures safe investment secured by real estate. As an investor in the fund, you will personally own a fraction of every deal the fund invests in. All the deals will be secured by at least 40% equity stake in a particular property.

• Are all investors' money pooled together? Yes. This is done for diversification purposes. It is much more prudent to pool the money together from different investors and to invest in variety of projects, rather than one investor to invest in one project. We don't pool private money to fund any fractionalized loans or residential properties without the investor's consent. We offer more control and security for the average trust deed investor.

• Who are trust deed investors? Any investor who seeks competitive rates of return from their investment is considered a trust deed investor. Simply put, the act of trust deed investing is whenever a person lends money to borrowers via the assistance of a broker. The money source can come from retirement accounts, savings, or credit lines.
  
  It's the broker who searches for potential borrowers, while the funding is provided by the private party with the money. It's also the broker who's responsible for getting the borrower to sign paperwork that serves as proof that he or she agrees to borrow money according to the terms specified in the contract.
  
  
• Are there any 2nd trust deeds offered by LBC Capital Fixed Income Fund? It is possible, but the great majority of the loans will be 1st trust deeds. However, there might be loan requests that are in the second position that we simply can’t pass on. We currently funded a $150,000 second TD behind a $240,000 1st on a property that is worth $1.4 million. We will take advantage of those opportunities.