There are several reasons why this makes sense for our company.

1. Typically, PPA’s financing on our properties consists of both a bank loan (at a low rate) and an investor loan at a higher rate (10%-12%). Consequently, the overall interest rate is likely to be in the 7.0% to 9.0% range, which is very reasonable for investment properties undergoing rehab and repositioning.
2. Unlike a bank we only accept money from investors when we have a place to effectively utilize those funds. Consequently, we are getting some immediate value from the funds.
3. Compared with using institutional equity money (typically 10% to 15% annual interest) PLUS a significant portion of the profits, our payments to investors are very reasonable.
   
   

The interest rate will vary according to the specific investment offering. Typically, our investment opportunities offer a fixed 12% rate (12.68% A.P.R.) for the accrued interest option, or a fixed 10% rate for the monthly interest payment option.

1. Monthly Interest Payments: PPA sends you a check on the 1st of each month.
OR
2. Accrued Interest: Your interest will accrue until the date of repayment to the investors. Upon repayment, PPA will pay your entire principal and unpaid, compounded interest.

1. On a $10,000 investment, for a 3-year term at the 10% rate, the total interest paid would equal $3,000 over 3 years (36 payments of $83.33).
2. For a 3-year term at the accrued, 12% rate, the total compounded interest would equal about $4,307, or about $1,307 more.

We encourage our investors to choose the option that works best for their investment portfolio.

Yes. This reporting occurs annually in January and reflects interest payments the investor actually received from PPA during the previous year.

1. Monthly Payment Investors receive a 1099-INT form in January, for the total of all monthly payment checks received in the prior calendar year. The IRS would also receive this information at the same time.
2. Accrual Investors do not receive a 1099-INT form, nor does PPA report any interest income to the IRS, until the January following the year in which an investment is actually paid off. The value of this tax deferral will vary depending on individual circumstances.

No. Although it is common for real estate investment companies to charge management and service fees, PPA does not charge fees of any kind to its investors.

The term will vary, according to the specific investment offering, but the term is usually between 2 and 3 years.

The investment is not liquid, like a bank deposit or the stock market. You must plan on having your funds remain in the investment for the term. Some investors intentionally invest in a variety of PPA offerings with differing maturities to create planned liquidity. However, if you need total liquidity in your investments, this investment is probably not for you.

Your security is assured in two ways:
1. Pacific Property Assets pledges its actual title to a specific, income-producing apartment building.
2.Pacific Property Assets has a perfect track record of on-time payments on over 125 previous investment offerings. During PPA’s entire history, it has never missed a payment or even incurred a late payment to any investor.

We usually record a lien on the property; investors receive a recorded Deed of Trust, together with the Promissory Note and Policy of Title Insurance.

Usually the property retains about 20% equity, even after the investor’s lien is recorded.

You have a second Deed of Trust, junior to the primary loan, which belongs to a commercial lender.

The Deed of Trust names all investors on that specific property; this type of Trust Deed is called a "fractionalized" Trust Deed. The individual investor’s interests are recorded as a percentage of the total investment amount.

Yes.

Unfortunately, no. Tax laws do not allow our investors to invest with PPA as a 1031 exchange. However, many investors have found they may be better served (both short and long-term) by paying the taxes due on an investment real estate sale and then earning a higher percent return with PPA.

Your first step would be to become a Qualified Investor. You can do this by completing a simple form called a Confidential Questionnaire, and returning it to PPA. This form is available at this web site as both a printable document that you can mail in, or one you can choose to complete on-line. To get started, visit Get Started: Become an Investor

The Confidential Questionnaire is a simple form that allows you to qualify yourself as an investor with PPA and is required by most companies like PPA in one form or another. It does not obligate you in any respect to invest. Most California investors easily qualify. Of course, all information is strictly confidential. You can get started right now by visiting become an investor. There you may choose download a printable version or complete the Confidential Questionnaire on-line.

At your request, we will send you an Offering, also referred to as an Private Placement Memorandum (PPM). The Offering describes all details of the investment. It does not obligate you in any respect to invest. You can get started right now by visiting become an investor. There you may choose download a printable version or complete the Confidential Questionnaire on-line.

Once you receive the Offering, please feel free to call us with any questions that you may have about it. When you decide to invest, just sign the appropriate page on the Offering, and return it to PPA along with your 10% deposit. Should you decide not to invest, you are always welcome to call us in the future and ask about new investments. You can get started right now by visiting become an investor. There you may choose to download a printable version or complete the Confidential Questionnaire on-line.