If you were like many people across the country, you probably watched or read about the new products Apple introduced recently.
The majority was interested in the gadgets themselves. We can now order either a grande or venti iPhone, if I can borrow Starbuck’s sizing system for a moment. However, some people were watching the product announcement and the days leading up to it from a different perspective. We’ll call this group “investors.”
Great products, Apple stock down
An interesting thing happened to the price of Apple stock – it rose prior to the day of the product announcements and fell when Apple CEO Tim Cook actually presented all the great new devices to the public.
If you aren’t a big stock market investor, that may seem odd, especially since people seemed to be pretty enthusiastic about the new iPhones and the Apple watch. However, seasoned investors recognize this phenomena as “buy the rumor, sell the news.”
This happens often in the stock market when investors sell stock in a company even when the news is good. Why? Because they ran the price up during the rumor period with the intention of selling and making a quick little profit. If the news bad, then the price plummets even more.
Value is fundamental
For those of us in the 1st Trust Deed investment world, this sounds a little crazy because investors are buying without knowledge and then when they have the facts, they’re selling. Investing in 1st Trust Deeds is all about “knowing.”
What gives investing in mortgages its safety is knowing the real value of the property being purchased or refinanced. If 1st Trust Deed investors were to speculate on the true value of a property, they would be out of the game pretty quickly.
That’s why Evoque Lending works with the most professional appraisers in our area. Further, with more than 15 years of experience in hard money lending throughout California – and especially in Los Angeles, Orange County and San Francisco – we’re a team or professionals that really understands the real estate we write loans on.
And by understanding the true value of property, we’re able to factor in 40 percent protective equity to give our investors the margin of safety and peace of mind they need.
Of course, in addition to the safety that we engineer into all the 1st Trust Deeds that we write, our investors are able to make a solid double-digit return on their money. When you work with us, you’ll know immediately that our investors are the first priority at Evoque Lending.
Further, we understand that at different times in their lives, our investors are looking for different terms for their investments. We typically offer loans that range from three to 84 months, so if you anticipate needing your capital fairly soon or later down the line, we can get you into a situation that will meet your requirements.
We work with a wide range of investors, including trusts. To determine if investing in 1st Trust Deeds will meet your investment portfolio goals, call us so we can give you more details. We always enjoy introducing people to our business.