We offer our investors California Trust Deed investments on 2-4 unit residential and commercial income properties ONLY. We have found these to be some of the safest possible trust deed investments available in a the current California real estate market. Note: We do not offer rehab / construction / land-only, or 2nd trust deeds to our investors.
We are not currently offering Trust Deed Investments to new investors. To be added to our database for upcoming investment opportunities, please complete our Investor Inquiry Form online.
The size of a loan may vary, but generally our investor should have $150,000 minimum to invest per-deed, and meet "qualified investor" status.
The TDIs we offer our limited pool of investors are secured by a 1st lien deed and note on the following properties:
- 2 - 4 unit residential income properties (non-owner-occupied)
- 5+ unit apartments
- Select multi-unit retail
- Select multi-unit office / medical office buildings
- Select multi-unit commercial properties
- Select income-producing industrial properties
The collateral must meet the following general criteria in order for us to offer it to our investors:
- Property located in California only
- Maximum 55% Loan-to-Value
- Demonstrate positive cash-flow of at least 1:0 DSCR based on current rents verified with ratified leases and supported by appraisal
- Minimum 6-month occupancy history of 50% or more, or pending leases in effect at closing, OR document other income to service the debt
- Well-maintained condition as verified by an on-site inspection and appraisal by a certified residential appraiser or MAI-certified commercial appraiser. Deferred maintenance issues addressed and satisfied.
- Free of all environmental hazards as applicable -- clean Phase I or II as necessary
- Minimum acceptable credit standards for the borrower (no current bankruptcy, no open tax liens or judgements, etc)
- Owner - borrower must demonstrate a history of property management or employ an independent property management firm
- Document a minimum 4-6 months operating reserves at closing
- Notes at typical yields of 7.99% - 9.99%
- Minimum 12 months of interest return to the investor
- We charge reasonable points and a processing fee on all investments
- We may structure a sub-servicing yield to us in lieu of points charged to the borrower in some cases
- Interest-only Balloon terms from 14 months to 10 years or more, depending on the parties
Trust Deed Amounts
Our notes range generally vary in amount from $150,000 - $1.5 million per investment.
We Are Not A Fund
We are a licensed California broker. We are not a fund.
Qualified Investors Only
Only Qualified Investors are allowed. Investors must meet minimum standards for income and net worth.
We do not offer fractional trust deeds (also known as "participation").
We do not service trust deed investments. We can refer you to servicing companies to handle this for you. Note: For loans that we originate using a yield spread compensation model, we require a specific servicing company handle the servicing of the loan due to their experience with sub-servicing.