State of Portfolio
We currently have 66 loans in our portfolio with an average overall Loan to Value of 60%.
The total of the loans is $13,532,000.00 down slightly from last quarter. All except one loan paid on time but our call to the seller that carried back money from the sale caused him to promptly make payments to protect his equity of more than 30%. We have funded an additional $8 million dollars in loans, which paid timely and have since been paid off in full
Who Borrows our Investors’ Money
It is often assumed that all of our Private Equity (Hard Money) borrowers are individuals that have poor credit ratings or undocumented incomes. Although a few of our borrowers may fall into these categories many of them do not. For example, the investors have lent funds to more than one individual that regularly earn high 6 figure incomes per year. Many of our borrowers have very high FICO (credit) scores however, they do not qualify with conventional lenders because they own too many properties (one of our borrowers owns no less than 15 properties at a given time) or they have excellent credit with strong cash reserves but do not qualify for bank money as they have chosen to seek new employment (typical of high earners in Silicon Valley).
Some borrowers have found “good deals” such as short sales or pending foreclosures and need money to close quickly. Other borrowers simply do not want to be “bothered” with full disclosure required by banks and they are happy to meet our primary requirement of a minimum of 30% equity.
What is of the upmost importance to all of us here is that we do all we can to protect our investors’ (and all principals here at Medallion Gold, Inc are investors) principal.
About our Staff
Alicia Avila (Loan Processer and Office Manager, RE agent) is our most recent addition. She answers phones, prepares doc’s for title, deposits checks from borrowers and disburses funds to investors…be nice to her.
Brenda Diles (Portfolio Manager, RE agent) attends to all aspects of the office and portfolio. She oversees documents, coordinates with escrow and works with investors and borrowers.
Debbie Feole has retired from Chevron where she was a financial analyst and accounting supervisor. She helps with our accounting.
Bob Feole is the broker of record. His primary function is to work with investors and borrowers and to be sure we are compliant with Bureau of Real Estate guidelines.
Medallion Gold uses the legal services of Jim Kroetch, RE Attorney and Broker, to inspect and evaluate property values. He also reviews documents that go to title.
Hopefully you have visited our website at: medallionservicing.com If you have been given your PIN#, then you can access your accounts and check for balances, payoffs and payments. We will occasionally post news there too.
It has begun to pick up in terms of new loan requests, please watch your emails for new opportunities.
Investing in First Deeds of Trust has proven to be a hard investment to beat in terms of income. As you know, most of our loans obligate the borrower to pay 9.8% net to investors. That being said, it is always wise to be diversified and we encourage our investors to keep a balanced portfolio of investments.