Why would a borrower seek a loan at 14% per year unless they are poor credits risks?
Many institutional and government loan programs are just too slow or unavailable for even the best qualified of these wholesale borrowers. What this has meant for Trust Deed investors is that very good 1st Trust Deeds are being sought by these borrowers who need fast, easy, short-term private financing in order to close deals. They are willing to pay lenders higher interest rates so they can obtain the funds fast and without the run around often experienced from institutional lenders.
