Learn more about Trust Deeds
Are There Minimum Capital Requirements?
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.
What Types of Properties Does SCL Lend On?
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.
Are Deeds of Trust Safe Investments?
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.
What LTV Rates Does SCL Work With?
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.
Who Can Invest In Trust Deeds?
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.
Will I Be Given a Complete Profile of the Property?
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!