top of page

Investor Resources

View Current Investments

  1. Market value, equity in property, and marketability of the collateral

  2. Borrower’s financial standing and creditworthiness

  3. Knowledge, experience, integrity of Mortgage Loan Officer

  4. Escrow process- funding/ loan closing/ recording deed of trust

  5. Docs/ instruments describing/ evidencing/ servicing the loan

  6. Loan servicing provisions, authority, and compensation

  7. Recovering your investment when the borrower fails to pay

7 Elements to Understand about Trust Deed Investing

Appraisal: An estimate of the value of property resulting from an analysis of facts about the property. An opinion of value

 

Bridge Loan: A loan intended to be used for a short period of time between the initial requirement for funds and a permanent, usually less costly, financial solution

Closing Costs: The expenses which borrowers incur to complete the loan transaction. These costs may include title searches, title insurance, closing fees, recording fees, processing fees, & other charges

 

Deed of Trust: A three party security instrument conveying the legal title to real property as security for the repayment of a loan. The three parties included in a deed of trust are the borrower, lender, and trustee

 

Escrow: The deposit of instruments and/or funds with instructions for a third neutral party to carry out the provisions of an agreement or contract

 

Fractionalize: To divide the ownership of the trust deed amongst multiple investors

 

Interest-only: A straight, non-amortizing loan in which the lender receives only interest during the term of the loan and principal is repaid in a lump sum at maturity

Interest Rate: The percentage of a sum of money charged for its use. Rent or charge paid for use of money, expressed as a percentage per month or year of the sum borrowed

 

Lien: The claims of debt, judgment, mortgage or taxes brought against a property. Examples of types of liens would include judgments, mortgages, and unpaid taxes

LTV (Loan to Value): The ratio of the requested loan amount against the market value of the property being used as collateral. A property valued at $400,000 with a loan request against the property asset of $200,000 would have a loan-to-value ratio of 50%

Market Value: The highest price in terms of money which a property will bring in a competitive and open market and under all conditions required for a fair sale, i.e. the buyer and seller acting prudently, knowledgeably and neither affected by undue pressures

Maturity date: The date by which a loan is to be paid in full

 

Notice of Default: A notice sent to the wrongful party as recognition of a default made. This is the first phase of the two step foreclosure process in California

Note: A signed written instrument acknowledging a debt and promising payment, according to the specified terms and conditions-- a promissory note

Points: A fee paid upfront on a loan that is incurred at the time of the loan. A point is equal to 1% of the amount of the mortgage

Prepayment Penalty: The charge payable to a lender by a borrower under the terms of the loan agreement if the borrower pays off the outstanding principal balance of the loan prior to its maturity

Principal: The loan amount borrowed or loan amount remaining unpaid. The part of the monthly payment that reduces the remaining balance of a mortgage

Trustor: One who borrows money from a trust deed lender, then deeds the real property securing the loan to a trustee to be held as security until trustor has performed the obligation to the lender under terms of a deed of trust

Trustee: One who holds property in trust for another to secure the performance of an obligation. Third party under a deed of trust 


Underwriting: The process that lenders go through to evaluate the risks posed by a particular borrower and to set appropriate conditions for the loan. This is based on the criteria of assets, credit, income, employment, real estate equity, etc.

Key Real Estate Terms

Please complete the following information and one of our investor

relations representatives will contact you to share our available investments.

Success! Message received.

bottom of page