California Trust Deed Investing

Anyone that has property with enough lendable equity to use as collateral and a strong financial business plan can be eligible for a bridge loan. This makes it an option for investors seeking the ease of a transaction or fast funding. However, the borrower must still prove that they can repay the loan, and the collateral’s value should have a good equity cushion.

Bridge loan interest rates may range from 8% to 15%, depending on the level of risk, loan size, overall scenario, and property location. Borrowers pay for the loan costs and closing costs.

A trust deed is a legal document that puts a lien on a property to secure a loan. It involves three parties: the property owner (trustor), the lender (beneficiary), and a third party (trustee) who holds the title.

In trust deed investing, you invest in short-term loans that are backed by real estate. Your returns come from the loan interest payments, and the property is security for your investment. The safety of the investment depends on the loan-to-value (LTV) ratio and other factors.

The LTV ratio compares the loan amount to the value of the property. A lower LTV typically means a safer loan. RTI Properties, Inc. typically keeps the LTV under 75%, often much less.

Minimums usually start at $50,000. Larger amounts provide more investment opportunities.

Returns generally range between 8-11% on 1st Trust Deeds, depending on the loan details. 2nd Trust Deeds offer higher returns between 12-13% + compared to 1st trust deeds because they carry more risk.

We lend on all property types, from residential investment properties to commercial investment properties. As an investor, you’ll be able to review details of the property before deciding if it’s right for your investment

Even if the property value decreases, the borrower still owes the full loan amount. A conservative LTV and financially stable borrower helps to protect you from losing money in a down market.

If the borrower defaults, you can foreclose on the property to recover your money. A lower LTV helps to sell the property at a discounted price and still recoup your investment or even make a profit. RTI can handle this process.

Yes, fractionalized trust deeds involve multiple lenders sharing a loan. If the borrower defaults, the lenders can decide whether to foreclose.

A trust deed fund pools money from many investors which is managed by a fund manager. You get diversification but no control over which loans are funded. With individual trust deeds, you choose the specific loans you want to invest in and are directly on the title.

Yes, you can utilize a self-directed IRA to invest in trust deeds. It’s a tax-friendly option because you can defer taxes on the income from these investments.

For new loans, your name should appear on the note, deed of trust, escrow instructions, and title policy.

Start by working with a reputable bridge loan lender or broker, such as RTI Properties, Inc. Contact Tom Gans, Principal of RTI Properties, Inc. 562-857-22850. He will present investment opportunities that match your criteria and guide you through the process.