Our Underwriting Philosophy
Our primary objective is to protect our clients’ investment dollars. That is why we feel that we would rather lower our rate to capture a high quality loan rather than fund a lower quality loan just to capture a higher yield.
We always ask ourselves the following questions when underwriting a loan:
- Does the borrower have a reasonable plan to make a profit, make the payments, and to pay off the loan?
- What is the borrowers experience with what he/she is trying to do?
- What will be the borrowers’ sources for repayment?
- Does the borrower show a positive history of stability and creditworthiness?
- And this is the big one, if they don’t pay, are we okay? This is why we generally do not lend over a 60% LTV and why we personally visit every property. Additionally, we require an Alta title insurance policy on every loan.
We have carefully selected third party service companies that will give our investors the ultimate in service and protection. Your funds and the borrower’s payments are ALWAYS handled by a licensed, bonded, and insured company. We cannot overstate the importance of this process when it comes to the safety of your investments.
We, the principals, of Trust Deed Capital, Inc. invest our own money in 1st trust deeds. (See the Presidents/CEO profile page). We feel this is the ultimate testimonial. However, also important is the fact that we have decades of experience in all facets of mortgage lending. And, have also purchased distressed properties through short sales, trustee sales, REOs, and the open market. We have rehabbed and flipped properties and we currently hold and manage rental properties. This helps us to evaluate the borrowers experience and it allows us to serve as a resource to help ensure our borrowers success.