Never let someone else define your role in the lending process. With Secured Capital Lending trust deed investment assistance, you can become a vital source of private money for regular borrowers and high-flying investors alike.
Our trust deed investing expertise ensures you can make loans effectively and lucratively. By guiding you through the nuances of funding other people’s real estate dreams, we help you tap into a high-interest source of viable investment income that gives you the power to do more with your property equity. At SCL, we will help you understand the following:
A deed of trust is a form of secured transaction common to the world of real estate in which
investors serve as lenders. By originating real estate loans using their private funds, these parties may be able to realize lucrative returns.
A trust deed investor is a person seeking a competitive rate of return by loaning private funds on real estate. In short, you’re the bank. The loans are secured by real estate. A trust deed investor makes a higher interest yield than would typically be obtained by a regular bank and is secured by the borrower’s equity in the real estate transaction.
Deed of trust investors may profit because they can demand higher interest yield than a financial institution would. In this case, a third-party trustee assumes control of the borrower’s interest in the property. If the borrower defaults, the trustee can remedy the situation on the lender’s behalf.
Secured Capital Lending funds private loans for real estate professionals and makes them available to you as fractional notes. These notes allow you to buy into a portion of the mortgage. We also offer the option of manually choosing notes based on risk and return factors or opting for AutoInvest to do the work for you with selections of conservative, aggressive, or all-notes strategies. Start with as little as $200,000.
Borrowers repay the loans you have invested in monthly, of which a portion of each loan you are invested in will be sent directly to you. We offer a state-of-the-art investor dashboard that is accessible 24/7 to allow you to view statistics and other factors in your portfolio in real-time.
With SCL, your loan will be paid back within 24 months or less. In the unfortunate event of something going wrong, Secured Capital Lending will handle any and all servicing needs and, if needed, foreclosure to allow our investors the peace of mind they seek. Remember, all of your investments are backed by a real asset.
Once the loan has been repaid, all funds will be returned directly to your online account, where they will be available to withdraw or reinvest to keep earning returns!
In California, would-be deed of trust investors must follow the 2013 SB978 laws enacted by the state’s Bureau of Real Estate. This rule blocks you from investing more than 10% of your total net worth in a single deed of trust. You may, however, invest greater fractions of your net worth in multiple deeds at your discretion.
Not all forms of real estate equity represent equally viable sources of lending security. We choose assets that maximize our client’s chances of generating positive returns and minimize their risks.
Secured Capital Lending currently restricts its trust deed lending to non-owner-occupied homes in California. Although this encompasses a range of individual properties, we concentrate the bulk of our activities on units with less than four habitations and single-family homes, including new construction, long-term hold, and fix-and-flip residences. We reserve the right to change our strategies to accommodate market conditions and provide superior service.
No investment is without risk. That being said, deeds of trust feature more security than most. Working with Secured Capital Lending gives you a trust deed for a real-world asset in California, where you retain the power to take profitable actions, like renting out or selling the property.
We are proud to loan as much as 60% to 65% of a property’s appraised value. We also maintain a long-term rental program with already-repaired properties, and we’re willing to offer similar loan-to-value terms for these assets. Our lending specialists may consider factors like a property’s type and location, your experience as an investor, and the nature of any necessary repairs when determining appropriate rates.
Private individuals, corporations, pension plans, 401Ks, custodianships, LLCs, retirement funds, IRAs, Roth IRAs, Self-Directed IRAs, Charitable Remainder Trusts (CRTs), Foundations, endowments, family trusts, family members, and SEP accounts can all invest in Trust Deeds.
However, some retirement accounts have limits, so please check with your custodian or agent. The Bureau of Real Estate simply requires that no single trust deed can be more than 10% of your (or an entity’s) net worth.
We take pride in the properties we present for funding. This means that before any property is offered as an option for you to invest in, it has already been appraised by one of our independent appraisal agents.
When considering a property, you will be sent a copy of the said appraisal, along with the address, for you to view the property at your leisure.
We understand that choosing to invest can be a confusing and often worrying decision. To learn more or to speak with one of our experts about why trust deed investing may be the right addition to your portfolio, visit our contact page and fill out our contact form to get in touch today!