Investor Frequently Asked Questions

Q: Who are the borrowers?

Q: Why does a borrower come to Trust Deed Capital instead of a bank?

Q: Where are the properties located?

Q: What types of investment products can an investor purchase?

Q: What is the minimum investment for an investor?

Q: What rate of return does Trust Deed Capital offer?

Q: What LTV (loan-to-value) ratio are the loans offered by Trust Deed Capital?

Q: Who collects and distributes the borrowers’ monthly payments?

Q: Will I have access to my investment if I need to make a withdrawal?

Q: Can I invest using my IRA or pension plan?

Q: How do I get started?

Q: How is Trust Deed Capital Licensed?


Q: Who are the borrowers?

A: The borrowers are experienced businesses or business people that purchase fixer uppers (rehab properties) well below market value from banks, trustee sales, short sales, etc. for the express purpose of reselling for a profit or to hold as a rental. They buy these houses at a substantial discount, fix them up in a timely fashion and have an excellent marketing program for resale – usually in a time frame of 6 to 8 months. Most of our borrowers use loans on a repeated basis – using Trust Deed Capital as their primary source for real estate related acquisition financing.

[back to top]

Q: Why does a borrower come to Trust Deed Capital instead of a bank?

A: Trust Deed Capital reacts quickly to loan requests and can underwrite and process a loan in a matter of days unlike a bank that often takes between 45–90 days. In addition, the borrower may not be able to obtain a non-owner occupied property loan due to ever tightening bank lending policies.

[back to top]

Q: Where are the properties located?

A: The properties that secure the investments are located primarily in Southern California. At Trust Deed Capital we prefer to lend in Orange County, coastal San Diego and Los Angeles counties.

[back to top]

Q: What types of investment products can an investor purchase?

A: At Trust Deed Capital we only offer whole loan trust deeds and partial interest trust deeds (also known as fractionalized interest). We do not offer mortgage pool shares (LLC Funds). Each trust deed is recorded in your name.

[back to top]

Q: What is the minimum investment for an investor?

A: For whole loans, the minimum investment is the dollar amount of the actual loan. For a fractionalized interest the minimum investment would be $50,000.

[back to top]

Q: What rate of return does Trust Deed Capital offer?

A: Currently, our trust deed loan purchases generate investor yields (less loan servicing fees) that range from 8.99% to 10.99%.

[back to top]

Q: What LTV (loan-to-value) ratio are the loans offered by Trust Deed Capital?

A: Trust Deed Capital loans do not exceed 60% LTV of the value of the property securing the loan. Frequently, loans are available with loan-to-values of 55% or less.

[back to top]

Q: Who collects and distributes the borrowers’ monthly payments?

A: Your loan will be serviced by an independent Orange County based nationally recognized, Licensed, insured, and bonded loan servicing company. They will collect the borrower payments and make automatic monthly deposit into your account.

[back to top]

Q: Will I have access to my investment if I need to make a withdrawal?

A: No, your money has been loaned out for the term of the note. However, there is an active market for these notes that may allow you to sale your note in the event that you need your investment back.

[back to top]

Q: Can I invest using my IRA or pension plan?

A: Yes, you can use a self-directed IRA to invest in Trust Deeds.

[back to top]

Q: How do I get started?

A: Our process for getting started is mapped out for you under the investment tab on this site or simply call our investor relations department at (949) 481-3266.

[back to top]

Q: How is Trust Deed Capital Licensed?

A: We are licensed by the California Department of Real Estate, a real estate broker #1805798 and the National Mortgage Licensing System #296507

[back to top]