January 2009

Dear Investors

A few months ago we wrote our clients about our safe and secured Trust Deed Investment program. Recent events on Wall Street have now made our program look better than ever. We anticipated many of these catastrophic events years ago when we designed our program for your security and peace of mind. Some people think our returns are too good to be true, even though we have a proven 10 year track record. Others are sure they can earn much higher returns without taking on greater risk, which can not be done. The plain truth remains: NO OTHER INVESTMENT VEHICLE CAN OFFER THE SAFETY, SECURITY, AND RETURNS OF TRUST DEED INVESTMENTS DONE RIGHT. Consider this:

• You (or your entity) hold recorded title to the trust deed investment directly in your name, or in some cases along with several other investors.

• The note and deed of trust are insured by a reputable, nationwide title company.

• Monthly payments to you (or your entity) are handled by an independent, bonded servicer.

• Each underlying asset (real estate) securing your trust deed investment has been appraised by a qualified licensed appraiser, in addition to being inspected/ reviewed by us or a licensed RE Broker, as needed.

• The process is transparent, that means you can see the investment, feel it, touch it-it’s real!

• We do not buy any real estate, only lend against it. This way every loan has two sets of borrowers guaranteeing the loan. One set is the individual(s) that signs the loan documents and the other is the underlying property itself.

• A full copy of the loan file is available for your review at any time.

What’s the key to the success of our program? We don’t understand esoteric “algorithmic stock trading models”. We don’t use “smoke and mirrors”. We don’t “know someone who knows someone who’s in the know”. We don’t expect to “time markets”.

What we do is old fashioned conservative due diligence, research, and inspection. Our trained staff spends many hours researching and verifying each loan file. In the end we only approve about 20% of the loans submitted to us. And if something doesn’t make sense we’ll decline the file, up to the day of funding.

Let’s be clear: Every investment carries with it some level of risk. Our job is to minimize that risk to a comfortable level, where your principal remains safe, and we can all sleep at night. No investor has ever lost money with us. Many of our investors, including our own retirement plans, have been with us for years, enjoying typical annual returns of 10-12%. At those rates money will double in 6-7 years.

So what are you waiting for? Call us for a frank, straightforward discussion to see if trust deed investments are right for you. We stand ready to work with you, committed to the highest standards of integrity, safety, and security.

Wishing you a healthy, happy prosperous 2009…

Sincerely,

Ilan Awerbuch
Vice President
858-404-7300 ext 121