Trust Deeds - good/bad/ugly..??

[Andrew Angell]

I'm researching a company that is a private lender.  They pool investor funds to lend.  You can choose the specific deals you loan into.

They are the first lien position on a Deed of Trust filed with the county, and included on that document is an "Exhibit A" listing all of the individual investors that are part of that lien.

The loans are typically to builders developing land, and they drip out chunks of the cash to the builders as they reach each stage of development.

They pay 10% monthly interest distributions.  9 month term with a 9 month extension option, so would expect it to run 18 months but it could be shorter.

They have been lending since 2011 and do ~70 loans per year.  In that time they have a record of of 39 defaults, so if my math is corret that's ~ a 5% default rate.

Of those 39 defaults they still came out even or ahead on 20 of them. 

Does this sound legit?  Any thoughts or general feedback on this would be greatly apprecaited.  Thanks!