Trust Deed Investments typically yield between 10% and 14% annually. Trust Deed Investing “TDI” offers a creative alternative to managing a real estate portfolio to clients looking to investment in CA Real Estate. Whether you want to BOOST your savings or are exploring options for earning retirement income, investing in trust deeds is a great way to earn double digit returns on your investments. If you are new to investing in trust deeds, let the experts at NorthStar introduce you to TDI. This is the easiest way of investing in real estate without the problems associated of owning a real estate portfolio and having to deal with finding the right deal, then management issues like tenants, vacancies and repairs.
NorthStar originates and underwrites through our lending channel VestCap. We lend conservatively only up to 65% LTV or up to 65% of the After Rehabilitation Value “ARV”of the property. We feel this conservative lending approach allows us to Hedge current market conditions.
All properties are secured by a Note, a Deed of Trust, Title Insurance, Homeowners Insurance and for added protection we use third party Appraisals and Escrow.
2. Investment secured by California real estate.
3. Provides monthly interest income.
4. Short terms typically less than 2 years.
5. Provides a passive way to invest in Real Estate.
6. We only lend on Non Owner Occupied properties maximizing your ROI and simplifying the Foreclosure process.
7. All loans require a 35% Equity position Hedging any market declination.
8. Locally underwritten and serviced by seasoned mortgage professionals.
Types of Trust Deed Investments
Offer investors the opportunity to purchase 100 percent of a single trust deed, giving them full ownership of the note. The lender receives a promissory note and insurance documents recorded in their name. Investors interested in purchasing whole trust deeds must have enough capital to finance the entire loan amount.
Multiple investors contribute funds to purchase undivided interests in the trust deed. Since a single investor does not need to put down the entire sum, this method may be preferable for those with less money to invest. But complications could arise in the event that the borrower defaults if there is disagreement on how to proceed. It is also possible that investors in fractionalized trust deeds may not have possession of original documents, which could present problems down the line. Fractionalized trust deed investments are typically limited to 10 or fewer lenders.
Syndicated mortgage pools are similar in function to mutual funds, except that they hold trust deeds instead of stocks and bonds. Investors are limited partners in the pool and investments are diversified over multiple trust deeds, which helps decrease financial risk.
To learn more about this opportunity visit VestCap and be sure to download your free eBook below.
“Trust Deed Investments What You Should Know”
Compliments of NorthStar and the California Department of Real Estate.
Trust deed investments are not insured by the FDIC or any other government agency, and difficulties such as economic conditions, declining markets and borrower default may cause some or all of the investment to be lost. If a borrower files for bankruptcy, it could affect the foreclosure process and cost investors large amounts of money in legal fees.
