Discussing the Deed of Trust and how Equity Investment Capital, LLC "EIC" relates to it will gain substance if we first take a brief look at what it is. The Trust Deed is a security instrument that collateralizes the equity in real property to a financial obligation. In essence, it is a pledge by the owner (Trustor) of a property to relinquish ownership to the beneficiary (Lender) if he should not abide by the terms of the loan (Note). More specifically, by signing the Deed of Trust the Trustor transfers title of the property to the Trustee (Title Company).

The Trustee by law now holds, with a "Power of Sale," the title in trust for the beneficiary. If the borrower defaults on the terms of the note, such as failing to make payments on the first or second loan, pay taxes, provide fire insurance, or compromises the value of the property, then the Trustee may exercise the Power of Sale on behalf of the beneficiary. The Lender subsequently executes a Notice of Default – a form provided and recorded by the Trustee.

At this point, the Trustor has 90 days to cure the default in whatever manner required. If the borrower does not cure, the lender has the option to demand full payment of his loan. If this repayment is not impending, the beneficiary can order the Trustee to hold a public Trustee Sale for the property in 28 days. The property is sold and the beneficiary recovers the money lent plus interest and all fees associated with the Trustee Sale. If the buyer does not default on the loan, but adheres to the full terms of the note, the beneficiary must sign an authorization of full reconveyance, which removes the Deed of Trust as a lien on the property.

With this recognition of the nature and function of the Trust Deed, we can now discuss EIC's interaction with such documentation, and how we treat Trust Deeds as investments. At the core of what we do is the purchase of short-term Deeds of Trust from beneficiaries motivated to sell before the note is due and payable.

The ability to acquire such Deeds at a discount is what allows us to create the sizable returns for our investors. Having perfected the process of identifying which notes on the secondary market are ideal for purchase, we are able to carefully select the safest ones for our investors.

We also have bulk REO's available.