Pacific Crest Management seeks double-digit yields secured by real estate. PCM invests in 1st lien residential notes, mortgages and trust deeds. We seek outsized returns and high margins of safety by acquiring deeply discounted notes. Although deep discounts can sometimes be found in performing loans, PCM specializes in non-performing loans that can be acquired for $.30-$.50 on the dollar from banks, private equity funds and individual lenders in distressed situations.
As a result of the 2008 financial crisis, millions of Americans found themselves underwater on their mortgages. Banks were overwhelmed with the sheer number of defaults and were unprepared to process the staggering number of requests for modifications, short sales or forbearances. Many requests could take months and even years to process. Unlike many banks with layers of bureaucracy, committees and strict guidelines, Pacific Crest Management has a small team of workout specialists providing personal attention to borrowers with a multitude of creative and flexible solutions.
If you’re looking for a safe investment for your hard-earned money but are unhappy with the poor returns that 401k, savings, CDs, bonds and money market accounts are earning you are not alone! Today’s stock and mutual fund markets are wildly unpredictable. While the potential for good returns exist in the market, it is not without substantial risk to both principal, as well as future earnings.
Investing in mortgage notes (sometimes referred to simply as “notes” or “paper”) is safer, more predictable, and yields much higher returns on average than any of the previously mentioned investment vehicles. They allow you to become a private lender with total control over your investment. It is secured by a 1st lien on the property, affording you numerous ways to exit safety and profitably, with returns on your capital investment typically ranging from 12-15% or higher.