1. What is a deed of trust or trust deed?
A deed of trust, once signed by the borrower, is recorded at the County Recorder’s office where the collateral is located. The recording of the trust deed “clouds” the title and lets the world know that the debt exists. When a title company researches a property, it is usually looking for trust deeds (or evidence of indebtedness). The recorded trust deed is also the trust deed investor’s security; it protects their principal.
A trust deed is insurance that you do not lose your principal. The property you are invested in can not be sold without satisfying the trust deed.
2. What a trust deed is not.
A trust deed does not insure you make money. Ampez has an investment agreement for this purpose. Through our relationship we build our trust and professionalism that we perform the way we say we are going to.
3. How much money do I need to start?
Ampez Investments is actively seeking private money sources with at least $10,000 to start.
4. Can I use IRA funds?
Yes. Ampez Investments actively places funds from IRAs, Self Directed IRAs, and Roth IRAs. However, please contact your plan representative as all IRAs have different rules and regulations. Read more.
5. What’s your typical property you invest in?
Ampez Rehab Investments only invests on vacant, non-owner occupied homes. We mainly focus on single family homes and units (1-4 only). Our main focus in this market is first time buyer inventory as it makes up the majority of the market. That being said most projects are sold between $150-250,000. Most projects have accepted offers in the first two weeks. Ampez holds to the strategy of fixing, repairing, and selling very quickly. We have never held on to properties. All of our projects have sold. This allows us to always adapt to current market conditions. Projects typically take 3-5 months from aquisition to sale date.
6. What is the yield?
Annualized yield is 11-14%.
7. Do you pool my money with other investors?
For smaller capital investments (less than $150,000) Ampez groups investor funds together to complete projects. Investor money is never divided or mingled with more than one project at a time. Investors always know exactly what they are invested in.
8. Once I’ve committed to be an investor, what should I expect?
Please see our process HERE.
9. Is it safe?
Every investment has risk. However, unlike many other investments, capital investing is unique in the investor owns a trust deed on a piece of real estate.
10. Capital investing seems too good to be true. What is the catch?
The risk adjusted returns of capital investments are very attractive. That being said, there is no such thing as a free lunch. First of all these investments are not liquid and therefore cannot be converted into cash quickly.
11. What is LTV? Why is it important?
LTV means loan-to-value. If a property is worth $400,000 and the loan amount is $240,000, then the LTV is the ratio of these two numbers (60%). The LTV is important because the margin of safety is directly related to the LTV. A low LTV means a higher margin of safety for the investor. An LTV of 60% or lower is generally a good signal.
12. Who in my network might be able to advise me on these types of investments outside of Ampez Rehab Investments?
Having an excellent team is always important and we suggest you check with your tax advisor, financial or retirement planner, accountant, and/or your attorney.
13. Who can invest in Ampez Investments?
Private individuals, corporations, pension plans, 401Ks, custodianships, LLCs, retirement funds, IRAs, Roth IRAs, Self-Directed IRAs, and SEP accounts. Some retirement amounts have limits so please check with your custodian or agent.
14. Do you require fire insurance on the property?
15. Do you guarantee work performed on properties?
All work is done by licensed contractors who are bonded and insured. In addition all work is guaranteed for one year minimum.
16. Will I be given a complete profile on the property?
Yes. Investors know the exact property they are invested in. Clients receive bi-monthly updates on the progress of the property. Investors my visit the project at anytime to personally view it if they so wish. Investors may request any and all documents at any time pertaining to a project.
17. If my money is not in a project will it be earning interest?
Yes. We refer to this as downtime. Once a project is sold it may be a couple of weeks to a month until your money is placed in another property. Your money still earns interest during this time and your dividend payments continue unbroken.