The Investment Process
Before You Invest
Whether you are a seasoned trust deed investor or you are considering your first trust deed investment, there are critical considerations to make in ascertaining that the investment is right for you, such as:
There are seven essential elements to understand regarding trust deed investments:
- Market value, equity in the property, and the marketability of the collateral.
- Borrower’s financial standing and creditworthiness.
- Knowledge, experience and integrity of the Mortgage Loan Broker through whom the transaction is conducted.
- Escrow process involving the funding of the loan or the purchase of the note.
- Documents and instruments describing, evidencing, and securing the loan.
- Loan servicing provisions, authority and compensation.
- Recovering your investment when the borrower fails to pay.
The Steps:
- Familiarize yourself with trust deed investing. (Click here for a copy of “Trust Deed Investing-What you need to know)
- Review Trust Deed Capital available notes and select properties and locations you are comfortable with.
- Read, sign, and return required investor forms and agreement.
- Request a complete due diligence package which will include a certified appraisal and other documents that will allow you to better evaluate your trust deed investment.
- Signed forms and wired funds are sent to escrow.
- Investor receives closed loan package and interest begins to accrue.
- Loan servicing account is set up and the investor can go online to monitor all payments and will also receive monthly statements.
(Click here to see available Trust Deeds)