PARTICIPATING DEEDS OF TRUST

AMAC offers investments in Participating Trust Deeds to qualified investors.

A Participating Trust Deed is an investment in a loan made to an affiliate of American Mortgage Acceptance Corporation and/or its officers and principals that is used in the development of real estate projects.

The investment is typically secured by a 1st Deed of Trust against the property, although in some cases the loan may be secured by a 2nd Deed of Trust depending upon the financial structure of the project. The property may already owned or is to be purchased by a single purpose entity formed for the purpose of acquiring and/or developing the property.

The development may be for new construction from the ground up or a rehabilitation of an existing property.

Investors funds are used for the purchase, construction and/or rehabbing of the project. Each investor receives a term sheet explaining the project, use of funds and all pertinent details of the investment.

In either case, if the property is to be new construction or rehabilitation of an existing property, the loan to value (LTV) will be based on an appraisal of the completed value of the project, including the use of projected income and expense figures, if applicable.

The investor typically receives a stated interest rate paid on a monthly basis, usually 10%-12% per annum. At the end of the term of the loan the investor receives an additional 3-5% per annum return on their investment at the time of their loan payoff.

Each project is different in its structure and term, but an average term of investment would be 3-5 years, with a final payout of approximately 15% to 18% per annum.

All property purchases, sales, property management and construction management is handled through our real estate affiliate, General American Properties, LLC (GAP) or one of its affiliates.

The principals of General American Properties, LLC have been involved in every phase of commercial and residential real estate investment since 1971.