TRUST DEED INVESTORS
Our Trust Deed Investors are Currently earning 7% to 12% Annually
We are happy to have the opportunity to bring the world of trust deed investing to you. Many investors have found that investing in trust deeds provides them dependable monthly income, secures their investments and gives them peace of mind.
Now is a good time to invest in trust deeds since the big banks and large institutional lenders are not making loans to many good quality borrowers. This has opened up a big opportunity where quality borrowers who have good credit and income are in the market to finance with private money. This current situation has led to a better quality of borrowers available to our investors. This leads to lower risk while providing a higher rate of return when compared to other investment opportunities.
We arrange trust deed investment for private individuals, family trusts, pension plans, self-directed IRAs and to corporations.
While all investments do involve some level of risk, trust deed investments have a long history of providing investors great returns with a low level of acceptable risk.
Equity is king and Loan to Value (LTV) establishes the equity protection. We are very conservative in our loan underwriting and approval process and typically won’t arrange any loan that exceeds 65% LTV of the property’s market value. In some rare circumstances we will look at a transaction that is at 70% LTV but there must be many mitigating circumstances that provide an acceptable level of risk to our investors.
We have been assisting trust deed investors with their investments for over twenty years. Our company has been involved with originating and placed many millions of dollars in trust deed investments with investors throughout California. While trust deed investing can be very beneficial it’s not for everyone. Investors need to know that trust deed investments are not considered liquid investments as opposed to stock investments that can be sold at a moment’s notice. Trust deed investments can be sold but can involve a lengthy process and often involve selling at a discount. So any Trust Deed investment needs to be considered a long term investment that provides investors an ongoing monthly payment.
Trust deed investments can be structured as either:
- First Trust Deeds: recorded in first position and is only subject to County property taxes in order of priority.
- Second Trust Deeds: recorded in second position and is subject to property taxes in addition to being subordinate to the first trust deed in order of priority.
Our investment terms can range from less than 1 year to 10 years or more.
The form of monthly payment our investors receive can be structured as follows:
Interest only: This investment option is where our investor receives a monthly interest only payment. This form of trust deed investment will have a balloon payment of the original principal balance due to the investor at the completion of the loan term.
Partially amortized: This investment option is where our investor receives a monthly payment that contains both principal and interest. This payment option allows for a partial reduction in the outstanding principal balance which leads to a reduced balloon payment at the completion of the loan term.
Fully Amortized: This is where a fixed monthly payment is paid to our investor that contains both interest and principal that pays down the outstanding principal balance so at the end of the investment term our Investor is paid back in full.
All loans are originated by experienced and licensed loan officers that possess an active Real Estate license issued by the California Department of Real Estate (DRE) or possess a license issued with the National Mortgage Licensing System (NMLS).