Trust Deed Capital, Inc. offers Trust Deed investments to private individuals, corporations, pension plans, and self-directed IRAs.
Basically, when you invest in trust deeds you are becoming the lender. That is to say, you are making money the same way banks make money. They take your money and give you 0% to 2% on your deposits and then lend it out at a 6% to 10% rate giving them a hefty profit even after covering operating costs. And, of course, these loans are collateralized by a promissory note secured by a recorded Deed of Trust. There is certainly a reason why banks make their money lending against collateralized property and not by investing in the stock market. And, the reason is the safety in having a secured investment.
We believe that investing in well underwritten 1st trust deeds always makes sense. However, the current market place makes this investment even more attractive. Restricted lending by banks is creating greater access to high quality borrowers. Our collateral has already been through historic declines and we are only lending at 60% of today’s value. And, the interest rates available today are far better than what the banks are offering.
At Trust Deed Capital, Inc. we find and meet with borrowers, originate, underwrite, document, fund, and set-up the servicing of the loans. Additionally, we continue to monitor the performance of the loans and provide guidance to our investors throughout the life of the loan.
All loans are appraised by an independent OREA licensed appraisal company. We personally sight inspect every property to assess not only the property but also the neighborhood and community. Our primary concern is to evaluate the marketability of the property.
Each loan is covered by a full extended ALTA lenders title policy to insure that the title holder/owner has a valid title to the property, is in 1st lien position and protected against any other title defects. A copy of the preliminary title report will be provided for your records.
Borrowers are required to maintain homeowners insurance in an amount to cover the loan and replacement cost of the improvements. You, the lender, are always listed as the loss payee on the insurance policy.
All transactions are funded directly to a licensed, bonded and insured title/escrow company and your vesting is on each promissory note, personal guarantee, recorded Deed of Trust, or assignment.
All loan payments are made directly to a nationally recognized, insured, bonded, and licensed loan servicing company. Your payments can be automatically deposited into your account and you will receive monthly statements.