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.
There aren't that many investment vehicles that will maximize your returns while minimizing your exposure. We do this by only lending on first trust deeds with a maximum loan to value of 65%. The average loan to value is currently at 55% ensuring the current market stability in the private lending industry. As many experts believe that the real estate bottom is here or at least near. Values will only be going north from here. We like to take the safe approach by limiting our max loan to value of our investor's money to reach 65% of the value of the property. This automatically gives the investor a minimum of 35% of protective equity in case of a default on the loan.
We also mostly focus on Southern California in both the residential and commercial sector. A majority of the residential lending that we do are short term for rehabbing properties and are purchase deals for investments only. We do not lend on owner occupied residential properties.
With an extensive knowledge of structuring trust deed investments, we have been able to secure these returns for our investors.If you have any questions, please free to shoot us an email .
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