San Diego, CA · Member since 2008 · 29 posts · 9 votes
Hi, I have about 110K that I would like to invest in a 1st trust deed. I was looking at FMC Lending where they provide loans that need funding. I liked that I can just be a partial investor on a 1st trust deed. However, I have read some pretty negative reviews about their processes and personnel.
I am in California so I would be most comfortable investing in a loan for a California property for I know a lot of the areas and have friends in areas I don't know.
Do you have a reputable company who is looking for investors? I'd like to get 10-12% which is what FMC is offering.
110k doesn't go too far on a 1st position loan in SoCal, unless you invest in a mortgage pool or with other folks on what's called a fictionalized or multi-lender loan. Look for a lender that offers fictionalized trust deed investments.
I think the going rate in SoCal is 8-10% + a point or two for flippers, so you may have trouble getting 10-12% from a HML in SoCal. I also am sitting on some $$$ that I would like to put to work at 12%. I think HML rates are higher in other states, but I haven't started digging into it yet. I am following this thread, and hopefully some HMLs will chime in and help us out.
@Connie Stainbrook check out Talimar Financial out of San Diego. I'm not vouching for them but saw them present at a local REIA I went to. They seem to offer full notes or fractionalized interests in them as well. I'm still doing my diligence on them so, again, not recommending them at this point but they are San Diego based and tend to loan on San Diego residences.
No matter where you choose to invest, it is important to remember that who you invest with is of vital importance. I made mistakes early in my career investing in others who lacked experience and I paid the price. As a borrower myself here in Southern CA, I have done at least 40 fractionalized notes with lenders and navigating through this process as a lender without experience (not sure what your experience is since it was not mentioned) can also be dangerous without the proper guidance.
As David mentioned, $110k in CA is not likely enough to get you in first position without fractionalization.