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Trust Deed Investments
Trust Deeds... How to Safely Earn Double-Digit Returns in Real Estate.
Biggest Advantages of Trust Deeds
Fixed Returns
Secured by Real Estate
Secured by Real Estate
Fixed returns mean that you know what your annual return on investment is going to be. If you choose a trust deed that earns an 11% rate of return, then you will earn 11% on your principal balance each year, until the loan pays off.
Secured by Real Estate
Secured by Real Estate
Secured by Real Estate
Unlike 90% of other investments, a "trust deed" literally means a mortgage, which is a lien recorded against real estate. If the borrower doesn't pay, then we start foreclosure proceedings. But 98% of all borrowers don't go into default, and the ones that do, usually come out of default.
You are in Control
Secured by Real Estate
You are in Control
That's what we like the most about trust deed investing. It's not a black hole. Our investors can do their own investigation, and if you understand real estate, you understand trust deeds. Nothing is hidden from the investor.
How to Begin a Trust Deed Investment
Visit the Property
Back before Zillow, we had to go look at properties and research them on the Assessors website and the Recorders Page.
Figure out how much to Lend
We knew the sales price, so how much would we lend? If the purchase price was $200k, did we feel comfortable lending $100k? If yes, and if the borrower could prove their income, we made the loan.
Investigate the Borrower
Pull credit, get 12 months of bank statements, two years of tax returns, business documents, background checks. This is what the broker does, but the investor has the right to see everything.
Get a Title Policy
Open escrow and request a title insurance policy. Find out who the owner of the property is. View the purchase contract, review the escrow documents, and get a CPL.
Sign the Investor Loan Documents
Investors have to sign their own set of documents, as well as review the borrower's loan documents.
Wire the Money
If you are making a loan, you have to wire the loan amount to escrow, so escrow can close the deal. Once the loan closes, you start collecting interest from day 1.
