Trust Deed Investments

Yes, by the time we present the property for funding, we have already had an independent appraisal done on the property. We will send a copy of that appraisal along with the address for you to view the property.

Torrey Highlands Investments does require fire insurance on a property. In addition, we require the investor inform the insurance company that the property is vacant. We require coverage in the amount of the loan or replacement guarantee.

Corporations, private individuals, pension plans, custodianships, 401Ks, LLCs, retirement funds, IRAs, Roth IRAs, Self-Directed IRAs, Charitable Remainder Trusts (CRTs), endowments, Foundations, family trusts, family members, and SEP accounts.

Some retirement accounts have limits so please check with your custodian or agent to find out that information. The Bureau of Real Estate simply requires that no single trust deed can be more than 10% of your (or an entity’s) net worth.

The California Department of Real Estate (DRE) has been renamed the California Bureau of Real Estate and they have an entire document that you can read on the topic of Trust Deeds.

Loan Servicing includes the back-office tasks of collecting payments from borrowers, disbursing payments to the investor, mailing required notices and statements, year-end tax documents for the IRS and franchise tax board, coordinating foreclosure proceedings if necessary (rare), and maintaining adequate borrower insurance coverage.

Points are simply just fees paid by the borrower to Torrey Highlands Investments for acting as a broker in a hard money loan transaction.

Torrey Highlands Investments loans up to 60-70% of the After Repair Value (ARV) of the property. If the property is considered a long-term rental, it is already repaired so we view the loan-to-value instead, but that also still falls within the range of 60-70% LTV.

When choosing how much to lend, Torrey Highlands Investments considers property type, property location, repairs needed, and investor experience.

Every investment has a certain level of risk, however, unlike many other types of investment programs, trust deed investing ensures you own a first trust on a specific Southern California property. Meaning that you have ultimate control and a physical asset that can be rented or sold.

The annualized yield for a Trust Deed will depend on the length of the single investment and the availability of a property for rollover. This is due to some investments lasting three months, while others spanning a few years depending on the program you choose.

For our Trust Deed program, Investors will likely see a 6% return annually on their initial investment because of the three-year term on the loan and the one-year prepay typically ensures the investment stays in place for a longer duration of time. Most investors with the desire of consistent cash-flow with less in-and-out often invest with this program.

Pertaining to Fix and Flip projects and new construction programs, there is no prepayment penalty and loan lengths vary and annualized rate of return will depend on how quickly the loan pays off. As well as, whether there is another investment available for a similar amount immediately after the close of the first.

Yes, at Torrey Highlands Investments we place funds from IRAs, Self-firected IRAs, Roth IRAs and several other retirement accounts. Utilizing Trust deeds is a great way to diversify your retirement portfolio and to leverage these types of accounts. Please note that you should contact your plan representative to confirm as well, since all IRAs have different rules and regulations.

Torrey Highlands Investments lends on non-owner occupied homes in California, focusing on single family homes and smaller units. As well as, we offer everything from Fix and Flip to long-term holds to new construction projects.

The California Bureau of Real Estate (formerly the Department of Real Estate) released new guidelines in 2013 via SB978 that simplified the process of qualifying for trust deed investing. In which it states that no one trust deed can be more than 10% of one’s net worth, however its important to note that this does not mean one cannot have more than 10% of his or her net worth invested in trust deeds.

To further clarify this point an example would include, if Torrey Highlands Investments has a $100,000 trust deed available, a prospective trust deed investor should have a net worth of at least $1,000,000. That same investor still has the right to then come back  and invest in another trust deed investment that meets the same 10% criteria.

In addition, the California Bureau of Real Estate (CBE) requires brokers like Torrey Highlands Investments to have potential investors fill out an Investor Questionnaire (Real Estate form 870 of re870). This form was created to ensure each investment is satisfactory for the investor.

The questionnaire is fairly elementary and inquires about one’s information like name, contact information, education, income, net worth, liquid capital, and goals for the investment. You can download this form on our website and email it back to us to be added to our Premier Client Index to view available upcoming trust deeds.

Trust Deed Investing is investing in collateral-backed property loans, which are secured by Real Estate, with most being short term loans made to professional real estate investors (Under five years, with most two years or less). Unlike private individuals who are generally subject to usury laws limiting interest rates on loans, Trust deed Investment Companies can legally lend to property owners at rates determined by market demand. Since Trust Deed Investment companies usually lend to borrowers with needs banks cannot accommodate, market rates for trust deed investments are usually significantly higher than bank mortgage rates.

Trust Deed Investment Companies originate, underwrite, fund, and service the loans for individuals and/or group investors. Trust deed investors receive regular interest payments throughout the loan term and principal is repaid when the loan matures.