In one simple sentence; DenSco will target the funding of Trust Deeds on Real Estate that is highly marketable, has sufficient equity, and the borrower is competent in fulfilling the obligation of the note; while providing investors a constant rate of return on their investment backed by a diversity of these properties with a strong loan-to-value ratio. Most of these loans will be to Residential and Commercial Foreclosure Specialists that will renovate and then flip the properties in a relatively short period of time. There will also be General Contractors, Residential and Commercial General Contractors in the form of construction loans.

   There are two parts to DenSco. The lending side and the investor side. The lending side is made up of Arizona builders and Foreclosure Specialists. We all have had dealings with banks and their slow, methodical process, endless forms, additional information requests, limits to the amount of money they'll lend, and then, in the end, a decision to decline the loan. Many builders have this same frustration. We provide a unique solution to their problems and provide a long term, flexible partnership.

The Lending side:

   Banks are the most recognized competition in Real Estate Lending. Their cost structure is typically based upon loan fees, inspection fees, appraisal fees, processing fees etc. and an interest rate tied to the prime rate. The prime rate has always been lower than that of DenSco. The total cost of the loan and APR may be higher than DenSco when the funds are needed for 6-8 months or shorter. The other primary considerations for using DenSco are the shorter time to get an approval, less paperwork in the application, value added by DenSco and its consultants, more convenient draw schedules, and the belief that a commitment from us is better than a commitment from most banks. The borrowers are very sophisticated borrowers and weigh all aspects in making their borrowing decisions.

The investor side:

   There are many different investment opportunities for an individual to consider in the finance world. In the stock market we have seen returns of 20% annually in the years 1995 through 1999. People believed this would continue. The year 2000 not only brought a new millennium but also reality to the market. The stock market has returned roughly 7% over the last 60 years. There will be up years and down years. It's a long-term view that makes it a good investment. Bonds have had their years of glory. Known for only providing a return slightly above T-Bills, in recent years, with the stock market swooning, they have provided double digit returns, sometimes as high as 20%. Home values in some parts of the country have seen a nice steady rise, while others have had swings as large as the stock market.

   DenSco is intended to provide an investment opportunity that helps balance these swings. Based on the length of time of your committed investment, you can expect up to 12% a year return on your money (1% a month times the amount you invest).

  Note Amount ($50,000 and up):

   6 months - 8%
   1 year - 10%
   2 to 5 years - 12%

   You can choose to have your interest paid to you monthly, quarterly, or compounded monthly, which ever meets your needs. Because of the nature of this investment there are some conditions that have to be met: minimum investment of $50,000; additional investments at $10,000 minimum. There are many requirements to meet to become an investor. Please see Investor Requirements for complete explanation.

   The amount to invest in DenSco, as part of your portfolio, is not a simple question. Everyone has different needs, portfolio values, tolerance of risk, and diversification of investments. My suggestion is to talk it over with whomever you trust for investment advice. I believe that DenSco can provide a valuable addition to any portfolio.

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