Trust deeds - California

4 Replies

Hi, I am new to US/ California real estate investment scene. As a resident of California, I am looking to potentially invest in trust deeds. I would really appreciate if someone could shed light on the following:

  1. Does California law stipulate an investor to be an "accredited investors" to be able to invest in any trust deeds and crowdfunding investments
  2. Does a residents of California need to be accredited investors for "out of state" trust deed investments and crowdfunding investments opportunities?
  3. Are there any legal regulations in California on the maximum interest that can be earned by private money lenders (referencing to usury laws in California)?

Thanks in advance.

I will try and answer to the best of knowledge. I do t believe you have to be accredited. 

If investing out of state but California resident you can invest however certain liscense is required for the company investing for you. Keep in mind PPM are all different.

Yes usuary  if you doing the investment on your own. 

You are welcome to pm me and we speak further. Good questions but there are nuisances 

@Vani Sood , Certain trust deed holders or crowdfunding platforms may require that you be an accredited investor to invest in their product.

@Vani Sood , Reading between the lines, I'm thinking you're a non-accredited investor trying to invest in trust deeds. If so, you may have some difficulty finding avenues to invest because most of them are for accredited investors. However, there are a few crowdfunding platforms that take nonaccredited investors. Realtymogul has a debt fund for nonaccredited investors and Ground-Floor is opening up this month nationally to offer individual debt deals to nonaccredited investors.

@Vani Sood  You can invest in 506(b) investment funds without having to be an accredited investor.

Or find a California Licensed Real Estate Broker who can originate One-on-one trust deeds.

It is illegal to lend above 10% without a Broker.

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