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Trust Deed Investments

One of the options for lending to people involved in real estate rentals or flipping is trust deed investing. Individuals or groups privately loan their money to people who have a plan to buy property that they will turn around and sell for a higher cost or make money from renting it out. Lending from private parties for this is usually easier to get than bank lending because of the different way it works. The property being purchased with these funds typically acts as the collateral.

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If you prefer to email us, fill out the form below and an associate will contact you to review the loan scenario and provide a quote.

What You Can Expect from Trust Deed Investments

Before you decide to go ahead with this type of investment, you should really understand what a trust deed loan will look like. When a private investor decides to give you funding, you should know that you will likely pay interest rates of at least 9%. This rate is higher than the normal bank-funded mortgage rate. These loan terms are usually much shorter as well, lasting anywhere from 3 months to 3 years. Next, expect to borrow between 60 and 65% of the loan-to-value (LTV) ratio, amounts usually between $50,000 and $2,000,000, based on the property you are considering and its current value. These loans are prepared by underwriters and you can expect them to come with a lot of the same legal obligations a normal mortgage would.

HMLCA
Contact Hard Money Lenders California anytime, to speak with one of our very helpful and highly knowledgeable loan specialists about your property investment funding in California
Hard Money Lenders California
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Rachelle ReedRachelle Reed
05:05 21 Jun 23
I wasn’t expecting the response time and level of professionalism / service provided. Will being using again them on my next deal.
Grace PerezGrace Perez
03:02 20 Jun 23
Nothing but positive things to say about this team. They are efficient, fast, and provide great service. Look forward to working with them again!
Mark DodgeMark Dodge
18:08 10 Mar 23
They took the time to explain to me the different options that I had. I appreciate all the help and tips they offered me!
Jerry WilsonJerry Wilson
21:15 01 Feb 23
Very impressed with the service speed, professionalism, and attention to detail when working with Hard Money Lenders Ca!
Christina NguyenChristina Nguyen
01:48 31 Jan 23
Great team, very responsive, professional, and will get everything you need done in a timely fashion. Highly recommend
Stefanie DufresneStefanie Dufresne
17:57 29 Jan 23
Seriously fast response service and amazing follow through. I never had to chase. They were so helpful with my fix and flip and i have done dozens. Really are quality people and business they operate.
Jody VelasquezJody Velasquez
16:29 27 Jan 23
Exceeded my expectations with terms and timing and that’s super critical of a lender, seems to be a great company.
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Filling out Your Investment Application

You’ll need to fill out an investment application for consideration just like you would with any other mortgage-type loan. Despite the fact that trust deed investments do not have the same exact expectations as a traditional bank loan, you still need to give several pieces of basic information. This includes your contact information, investment objectives and investment background among other things. You’ll also need to give specifics on properties you are considering including the types and sizes and how much money you are expecting to obtain from this of financing. When your request is approved, you lender will ask you to give additional information about the details of the specific property or properties you are interested in.

Why Choose Hard Money Lenders CA?

As you can tell, trust deed investing is different than other types of lending. It is up to an individual private lender to decide to lend out the money or deny the application. Therefore, they could deny the funding due to other factors besides whether or not they think the developer will be able to repay them. The lender could look think that the property in question isn’t worth the risk of investing. On the other side of the coin, however, individuals wanting to renovate property to sell for a higher cost have a better chance of getting this funding to complete the project. This saves the headaches involved with qualifying for a bank loan.