Private Mortgage Lending 1-888-PFS-0005 ext. 2
Investing with Portland Financial
Portland Financial’s experienced team of industry professionals is dedicated to providing our
investors with consistent high-yield returns. We achieve this by educating our investors of the
investment process.
The Investment Process
There are several steps involved in how Portland Financial locates a potential investment and
securitizes it for our investors. The flow chart below presents a simple summary of how we do
so.
Underwriting the Investment
As with any investment, there are risks. At Portland Financial, we seek to minimize the risks
through our underwriting. Some techniques we apply in underwriting a potential investment
include:
Portland Financial’s experienced team of industry professionals is dedicated to providing our
investors with consistent high-yield returns. We achieve this by educating our investors of the
investment process.
The Investment Process
There are several steps involved in how Portland Financial locates a potential investment and
securitizes it for our investors. The flow chart below presents a simple summary of how we do
so.
- Qualified investors complete an Investor Worksheet and W-9 form.
- The wholesale lending division ascertains a trust deed investment opportunity and
underwrites it to meet a high standard of quality. - Portland Financial then pairs the trust deed investment opportunity with a qualified
investor. - Portland Financial securitizes the trust deed investment for the investor through
legal recording. - The investor transfers funds to escrow agent for Portland Financial.
- Portland Financial then assigns the trust deed to the investor for a fee of 3-5% of the
principal amount to be funded. - The escrow agent disperses funds to the borrower minus fees collected.
- The investor receives monthly interest payments for the principal amount invested
to acquire the trust deed.
Underwriting the Investment
As with any investment, there are risks. At Portland Financial, we seek to minimize the risks
through our underwriting. Some techniques we apply in underwriting a potential investment
include:
- Evaluating a borrower’s ability to repay debt.
- Verifying a borrower’s income status.
- Requiring a Broker Price Opinion (“BPO”), a conservative determination of property
value, and sometimes property appraisal report. - Maintaining minimum equity requirements in a property.
- Controlling the title and escrow process.
- Ensuring certain judgments, liens and other debts are paid off in full prior to the
recording of an investment. - Forcing hazard insurance on all properties.
- Preferring trust deeds secured by entry level and middle-market properties in stable
or growing markets.
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