Why Trust Deeds?

Trust Deeds offer an excellent option for investors seeking consistent monthly income, security of real estate as collateral, and the ability to invest locally.

A Trust Deed investment is simply a loan provided by a lender to a property owner (borrower). The loan is secured by real estate with a recorded instrument called a trust deed. Trust deeds normally pay between 8% to 12% annually based upon the risk, such as property type, borrower financial history, and the loan to value. Investors are typically paid monthly payments by the borrower with principal being returned upon the payoff of the loan.

Consistent Income: 

Investors in many parts of California find it difficult to locate real estate investment opportunities that offer attractive cash flow on assets in strong primary residential markets. With cap rates on multifamily properties trading below 6%, many investors have turned to trust deeds to obtain higher yields. Further, investors are enjoying these yields without the hassles of owning / managing income property such as property maintenance, tenant turnover, and poor property managers.

Security:

Trust Deeds offer the security of real estate as collateral. Sophisticated trust deed investors typically limit their loans to 65% of the property value (known as Loan to Value or LTV). By limiting the loan amount to 65% LTV, trust deed investors protect themselves in the unfortunate circumstance that the borrower stops making their payment and the investor is required to foreclosure. In this scenario, the proceeds from the foreclosure sale should return the investor their original principal, outstanding interest, and legal fees.

Investing Locally: 

Almost every investor at one time or another has made the mistake of investing in an unfamiliar market. Trust Deeds offer investors the ability to invest in their local market. By investing locally, investors can reduce their risk by making a visual inspection of the property they intend to use as collateral and continue to inspect that property through the duration of the loan.  Further, many investors can utilize the network of specialists in their local market to better understand the risks of their potential trust deed investment.

Trust Deed investments can offer investors an alternative real estate investment option that provides attractive yields / consistent monthly income, collateral, and the ability to invest locally. Investing in conservative trust deeds, investors can earn long term cash flow while reducing risk to their principal, and most importantly, their time.

For more information on Trust Deed investing or current investment opportunities, visit www.talimarfinancial.com or contact Brock VandenBerg at (858) 613-0111 x1.