Investor Programs
Anchor Loans, Inc. ("Anchor") is a licensed mortgage broker with the California Department of Real Estate and a licensed California Finance Lender (CFL) through the California Department of Corporations. Anchor, through its long-standing relationships with its borrowers, coordinates the lending of money for the purchase of real estate. Anchor specializes in lending to experienced borrowers who make a business of finding properties to purchase at a discount, improving (where needed) these properties and selling them at a profit. Anchor underwrites each and every loan to a set of standards designed to ensure there is sufficient equity in the property to protect the loan. Anchor offers these loans (in the form of a Trust Deed investment) to investors for their portfolio while handling the servicing of the loan on behalf of the investor. The Trust Deed investment involves an investor purchasing the Note and Deed of Trust securing the note by the borrower's real property. Anchor's Trust Deeds are funded from private sources such as individuals, entities (such as LLCs and corporations), pension funds and IRAs. If you are a private investor, a representative of a pension plan or an institutional investor, Anchor has two different investment methods, subject to availability, that may be suitable for you or your client. These are listed below.
1. Whole Loan Investing
With this option, a qualified investor would fund or purchase the entire value of the Note. Anchor usually has various loans available for purchase at all times. Documents will be produced so that the investor is the lender on the loan and the investor's name is recorded with the County Recorder as the beneficiary. For example, an investor would purchase a loan that has an amount of $250,000 for $250,000. The duration of your investment is the term of the loan. The interest and principal paid by the Borrower on a monthly basis is collected by Anchor and returned to the investor, less any applicable loan servicing fees. Investments in Trust Deeds investments involve risk. Investors should review the materials entitled "Trust Deed Investments; What You Should Know" and "Summary of Risk Factors Related to Trust Deed Investments" provided in the Investor Tools Document Library prior to investing.
2. Anchor Fund, LLC
Anchor Fund, LLC, a California Limited Liability Company (the "Fund") is a mortgage pool that has been operating since 2003. The Fund invests directly in Trust Deeds that earn interest paid by the Borrowers. The Trust Deeds generate interest income that is payable to the Fund. Investors who meet the suitability standards may purchase shares in the Fund (similar to purchasing shares in a mutual fund) and participate in the profit generated by the portfolio of Trust Deed investments held by the Fund. The income earned by your capital investment can be paid to you as a monthly distribution or can remain in the Fund to compound and grow. Investments in the Fund are subject to certain risks which are outlined in the Fund's Offering Circular. Potential investors should read the Offering Circular in its entirety prior to investing.