A trust deed, or deed of trust, is a security instrument for real estate loans. The details of the loan are spelled out in a separate promissory note, and the trust deed is recorded at the County Recorder's Office. The trust deed serves legal notice to the world that the subject property is pledged to secure a loan. It also provides for a rapid method of foreclosure should a borrower default on a loan.
Can anyone invest in trust deeds?
Everyone can participate in investing in trust deeds. Private individuals, corporations, pension plans, 401Ks, custodianships, LLC's, retirement funds, IRAs, Roth IRAs, Self-Directed IRAs, and SEP accounts.
What are the risks with trust deed investments?
All investment carry a risk to a certain degree. With trust deed investments you get a deed of trust and a promissory note against a physical real estate property that can be sold or rented. Your maximum risk on any investment is 70% Loan-to-value at the time of funding.
Do you group my my money with other investors?
You can select either option. You can fractionalize your investment over multiple deals to diversify your risk or you can be the only investor
which gives you more control over the investment. The choice is yours when you sit down with one of our Investor Executives.
How much money do I need to start investing with MOR?
As little as $25,000. Trust deed investments can be fraternized in as little as a $25,000 increments and you can make it grow from there. After 30 years, it will be $499,813 @ 10.5%.
What is the cost?
There are no costs to you for being an lender on real estate properties. We charge our clients directly when the transaction closes directly from escrow. As a broker, we charge points directly to the person requesting the loan.
What are points?
Points are fees that MOR will charge the person requesting the loan.
What kind of properties will you lend on?
MOR will lend on non-owner residential properties and commercial properties located in the State of California.
What is the max loan-to-value (LTV) you will lend on?
The max loan to value we will lend on is typically 65%. This will allow for plenty of leverage in case of a default.
Question? 1.866.937.6676
Can I use my IRA and What are self-directed IRAs?
Yes, you can use your IRA. You can use various retirement account to fund deeds of trust. It is a great way to earn steady, high yields over a long period of time. Remember, diversification is key to a successful portfolio.
Self-directed IRAs are simply a checkbook that allows you to invest your IRA that way you think is best. You can use it to fund trust deed investments. Please consult with your financial advisor and tax advisor for further information.
How many transactions do you do?
We receive on average $30 to $40 Million in loan requests per month. We can assure you that we can find a fit for the criteria you set.
How come my rate of return varies?
Your rate of return will vary due to the criteria you set with your Investment Executive. The less risky the investment the lower the rate of return and visa versa. We will work with you to achieve your goals while staying within your parameters.
What is servicing and what is my cost?
Servicing is making sure that the payments arrive on time and payments are disbursed accordantly to the investors. We watch over every loan we fund and follow foreclosure proceedings if necessary.
There is no cost to you, MOR implements a margin between your rate of return and the nominal interest rate charged to the borrower. We cover the charge of servicing within each loan.
How am I covered in case of fire?
MOR requires fire insurance on every transaction and you would be named as the loss payee in case of any damage.
Do I really need a broker to invest in trust deeds?
It is highly recommended that you use an established broker to help you coordinate the transaction. There are many pit falls if are not an experienced investor and you must also take in consideration the State of California usury laws.
How do I Start?
You can call us at 1.866.937.6676 or email us with any questions. We pride ourselves on a close relationship with our investors. We start by meeting you in person and shaking your hands. We plan out your goals and create a criteria so we can match your parameters with the loan requests.
What are trust deed offerings (TDO)?
We will provide you with a TDO to review once we matched you with the right investment. It will include the description of the property. It will highlight strengths and weakness with the loan.
