If You’re Tired Of Rental Real Estate, But Still Love Real Estate, If
You’re Tired of the Ups and Downs of the Stock Market,

If you hate paying fees to your stock broker,

and you wonder, “Why isn’t there something better to invest in?”

Well, there is!

And the Return on Investment (ROI) is typically around 10-11%, although it varies depending on the type of deals you like to do.

THIS INVESTMENT IS CALLED “TRUST DEED LENDING”  WHICH IS A PART OF THE “ALTERNATIVE INVESTMENTS” INDUSTRY AND IT HAS BEEN AROUND SINCE THE BEGINNING OF TIME (ALTHOUGH “TRUST DEEDS” ARE A RELATIVELY NEW TYPE OF SECURITY INSTRUMENT THAT DOES NOT REQUIRE A COURT INVOLVEMENT IN ORDER TO FORECLOSE).

90% of savvy investors say that trust deeds are highly effective at raising the overall rate of return in their portfolio, and the other 10% might not know what a trust deed is! .  And if you have a self-directed IRA or you have money sitting in a CD or savings account making less than 1%, then trust deeds are a great place to start. You can find trust deeds in many states in the United States, but our trust deeds are secured by real estate in the western United States, and primarily in the entertainment capital of the world. We’ve been investing in trust deeds since 1997, and we’ve been offering them to investors since 2002.

We’re a bit different from a lot of the trust deed lenders you’ll find on the internet.

  1. We lend on all types of occupancy types (because we have found that owner occupied loans are usually safer than investment property loans and because we have the technology, experience, and licensing to do owner occupied loans and other brokers do not),
  2. We lend in multiple states,
  3. We cross collateralize (which means we put the loan against two or more properties),
  4. We lend on commercial real estate (office buildings, retail strip centers, industrial buildings), and
  5.  We lend on vacant land and we do development and construction loans.  Each of these items requires a strong skill set and extensive experience plus the use of “experts”, like attorneys, construction control, engineers, architects, builders, etc.

WE COULDN’T HAVE THE SUCCESS WE HAVE HAD WITHOUT THE USE OF TECHNOLOGY AND A STRONG SET OF ETHICS. 

IN 2009 WE DEVELOPED THE “CAPELLA METHODOLOGY OF TRUST DEED INVESTING” INCLUDING
OUR PROPRIETARY PORTAL AND PIPELINE SYSTEM SO YOU CAN SEE THE TRUST DEEDS IMMEDIATELY.  NOW MANY OF THE OTHER BROKERS HAVE A PORTAL ALSO.  BUT OUR INVESTORS SAY THAT NO ONE HAS AS ADVANCED OF A SYSTEM AS WE DO, NOR AS FUN OF A SYSTEM AS WE DO!

The “Capella Methodology” is our way of making trust deeds the safest we can make them without issuing a guarantee (which is illegal in EVERYWHERE). We’ve got decades of experience in real estate investment. We’ve completed deals on thousands of properties and have analyzed thousands more and we’ve had a system for years that allows the average investor to invest in solid and secure trust deeds without the need for years of personal education in the real estate investment field. Instead of spending hours and hours pouring over paperwork and visiting properties, investors can become members of our Trust Deed website, and have immediate access to our proprietary Pipeline Tracking System – a turnkey system for investing in trust deeds.
Capella Mortgage Corp.’s turnkey system takes the drudgery out of researching your investment, and it puts the control right back into your hands without hours of investigating and visiting brokerages.

Once you sign up, you’ll get a call from one of the owners or our Chief Investment Officer, and we will ask you some questions and find out if you are an “accredited” investor. The requirements are less stringent than they are for a stock market investor. So call us at 702-214-4700.

When you find a trust deed that you want to reserve, click on “Reserve a Trust Deed” which immediately puts in your reservation – date and time stamped – for that trust deed. It is a “first come, first served” reservation system, so check the website regularly. We place more trust deeds per month than most other trust deed companies, as we are licensed in multiple states. We’ve lived here in Las Vegas for more than 37 years and we’ve figured out how to make your investment the least stressful, most fun possible.
https://capellamortgagecorp.formstack.com/forms/new_investor

Click here to learn more about our code of ethics which can be used to easily analyze the mortgage brokers you speak to, so you can find the best ones to work with.

THE THING WE HEAR THE MOST FROM BRAND NEW INVESTORS IS….

Who on earth would borrow money at 8-14%…
they must be really desperate!
However, that is rarely the situation.
Usually it is because of speed or property type or property condition.
To a borrower is is “opportunity cost”.

EXAMPLE #1: FIX AND FLIP LOAN

For a real estate investor, who buys houses, fixes them up and sells them, the name of the game is short term profit. If he can make $30,000 in 3 months, and it only costs him $10000 to buy the property using private money, what do you think he is going to do? Better yet, on every INVESTMENT PROPERTY DEAL, our borrowers agree to pay you 3 months of interest, whether or not they use the money for that long.

EXAMPLE #2: OWNER OCCUPIED LOAN

Getting a private money loan is cheaper than renting, so families find that this is a practical way to buy a house. For example, let’s say they find a house for $200,000 – with 3 bedrooms, 2 bathrooms, and 2 car garage. Using private money, they will borrow $120,000 and put down $80,000 and their payment will be under $1400 per month (interest + taxes + insurance). They know they can pay back or refinance the $120,000 loan in under five years, because they already saved up $30,000 in one year. Fannie Mae, FHA, and Freddie Mac have so many rules and regulations that over 30% of eligible borrowers are turned down for traditional loans.  Now the AltQM and NonQM markets are becoming a big deal, but there are still a lot of owner occupants who do not qualify for those loans either.

FREQUENTLY ASKED QUESTIONS

Our trust deeds pay 8-15% and they are in first position on the property. The reason we are at 8-15% is because there is competition for private money loans and if we charge too high, the borrowers will go to our competition, and the second reason is because we want it to be affordable for the borrower. If it isn’t, he will not be able to pay back the money, and that isn’t the goal. We have found that when we charge too much interest – more than the norm – the borrower gets hurt, and we want our loans to be win/win/win for the borrower, the investor, and the broker. Our record is important to us and 9 foreclosures out of the last 3000 loans is something we are proud of.  We start more foreclosures than that, but they usually do not go back to the investor because the borrower pays off the loan before the foreclosure can go through.

The first thing is that there is a piece of paper called a “Trust Deed” or “Deed of Trust” that is signed by the borrower, and that gets recorded at the county recorder’s office, for all of the world to see. And that piece of paper says that the borrower owes you money. The borrower cannot sell the property without paying you back because every title company checks the county records to see if there are any “Trust Deeds” listed on the property. If there is, they will send us a “payoff demand” and we put down the balance that is owed to you, and we send it to you for signature, and when the house sells, you get paid back all of your principal, plus the last month of interest.
The second thing is the Promissory Note. This is a legal document that outlines all of the terms of the loan, including the interest rate, the late fees, the balloon payment, the default interest rate, and what happens in the event that the borrower stops paying, which is foreclosure. The Promissory Note and the Deed of Trust are returned to the borrower, stamped “Paid in Full” when all of your principal and interest has been paid, and not a minute before.

You only lend up to a certain percentage. It is called “loan to value”. If a house costs $100,000, you lend up to $60,000, but no more. And many borrowers only need $20,000, $30,000 or $40,000. They have most of the money to buy the property, but they need just a little bit more and they can’t take it out of their credit cards, because it will cost them 24%. So 12% is cheap.

If the payor defaults, we will do all of the work to foreclose for you and you will get the property for 40% less than what the payor paid for it. And at today’s low prices, that is a heck of a bargain. You can rent out the property and make 2 times what you were making on the trust deed, or we can sell the property for you, and you keep the profit. Meanwhile, all of your other trust deeds just keep on paying month after month, and you don’t have to do a thing. We’ve only had 4 foreclosures out of the last 735 loans, so don’t think that this happens very often. It is very, very rare. People treat private money loans much better than bank loans because they know that you will not let them go more than 30 days without a payment. When a borrower puts down 40% or more on a house, they take very good care of that asset.

The other part of being in “default” is that the interest rate changes to the default rate – which is as high as a credit card’s default rate. Why? Because at that point, we have to start doing a lot more work to help the borrower come out of default, and it is a deterrent to the borrower. Usually, the payment is still affordable, but can be more than double the normal payment, so borrowers do not want to be late on their payments.

The State of Nevada does have rules about who can invest. Unless you have a net worth of at least $250,000, (or you made more than $70,000 each of the past two years) you will not be able to invest in any trust deeds in Nevada. Our typical investor has a net worth of many millions, but don’t let that stop you. They started somewhere also. Most of my investors love this investment and the majority of their money is invested in trust deeds.

First of all, it’s the law. Federal law makes it a requirement that any private money loan on any 1-4 unit residential property be handled by a licensed mortgage broker. That’s because a broker will make sure the loan complies with RESPA, TILA, HOEPA, DODD-FRANK, SAFE-ACT and a host of other federal and state laws, and the broker will make sure that the borrower’s rights are explained clearly and completely and not unintentionally violated;

  • we make sure the borrower qualifies by underwriting his income, his employment, his credit;
  • We make sure that both the investor and the borrower sign all of the legally required paperwork;
  • We monitor the payments each month;
  • We notify the borrower when they are 60 days away from the balloon payment;
  • And we take care of everything else that needs taking care of.

P.S. Borrowers are allowed to pay you back on their own schedule. Many times you will receive $1000 extra per month, which increases your equity position (always a good thing).

Pretty much just sit back and receive payments deposited directly into your bank account by the 5th of every month. And if the payment is late, you get a $75 late fee added into your deposit!

ZERO. Zilch. Nothing. Nada. Unless you invest with a self-directed IRA and then you might have some fees that are charge by your custodian when money comes in and out of your account. The borrower pays all fees. You even get your wire transfer fee paid back. If you have to foreclose, you will have to front the money to start the foreclosure ($800-$2000). But if the borrower comes current, you get paid back everything you have paid to date. And if the borrower doesn’t come current, then you get paid back at the auction when someone buys the properties, plus you get the default interest and late fees. And if you don’t get paid back at the auction, you will get the property back and be able to sell it and you get paid back EVERYTHING first, and then you get paid back your portion of the profit.

If you are ready to hear from us, or ready for more information, sign up here and we will contact you discuss your options.

HOW MUCH CAN I MAKE WITH A TRUST DEED INVESTMENT?

Trust deeds pay anywhere from 8% to 15%. Our trust deeds pay 12-14% and they are in first position on the property. The reason we are at 12-14% is because there is competition for private money loans and if we charge too high, the borrowers will go to our competition, and the second reason is because we want it to be affordable for the borrower. If it isn’t, he will not be able to pay back the money, and that isn’t the goal. We have found that when we charge too much interest – more than the norm – the borrower gets hurt, and we want our loans to be win/win/win for the borrower, the investor, and the broker. Our record is important to us and 4 foreclosures out of the last 735 loans is something we are proud of.

WHAT MAKES IT A ”SECURED” INVESTMENT?

The first thing is that there is a piece of paper called a “Trust Deed” or “Deed of Trust” that is signed by the borrower, and that gets recorded at the county recorder’s office, for all of the world to see. And that piece of paper says that the borrower owes you money. The borrower cannot sell the property without paying you back because every title company checks the county records to see if there are any “Trust Deeds” listed on the property. If there is, they will send us a “payoff demand” and we put down the balance that is owed to you, and we send it to you for signature, and when the house sells, you get paid back all of your principal, plus the last month of interest.
The second thing is the Promissory Note. This is a legal document that outlines all of the terms of the loan, including the interest rate, the late fees, the balloon payment, the default interest rate, and what happens in the event that the borrower stops paying, which is foreclosure. The Promissory Note and the Deed of Trust are returned to the borrower, stamped “Paid in Full” when all of your principal and interest has been paid, and not a minute before.

WHAT MAKES IT SAFE?

You only lend up to a certain percentage. It is called “loan to value”. If a house costs $100,000, you lend up to $60,000, but no more. And many borrowers only need $20,000, $30,000 or $40,000. They have most of the money to buy the property, but they need just a little bit more and they can’t take it out of their credit cards, because it will cost them 24%. So 12% is cheap.

BUT WHAT HAPPENS IF MY TRUST DEED DOESN’T PAY?

If the payor defaults, we will do all of the work to foreclose for you and you will get the property for 40% less than what the payor paid for it. And at today’s low prices, that is a heck of a bargain. You can rent out the property and make 2 times what you were making on the trust deed, or we can sell the property for you, and you keep the profit. Meanwhile, all of your other trust deeds just keep on paying month after month, and you don’t have to do a thing. We’ve only had 4 foreclosures out of the last 735 loans, so don’t think that this happens very often. It is very, very rare. People treat private money loans much better than bank loans because they know that you will not let them go more than 30 days without a payment. When a borrower puts down 40% or more on a house, they take very good care of that asset.

The other part of being in “default” is that the interest rate changes to the default rate – which is as high as a credit card’s default rate. Why? Because at that point, we have to start doing a lot more work to help the borrower come out of default, and it is a deterrent to the borrower. Usually, the payment is still affordable, but can be more than double the normal payment, so borrowers do not want to be late on their payments.

WHO CAN INVEST IN TRUST DEEDS?

The State of Nevada does have rules about who can invest. Unless you have a net worth of at least $250,000, (or you made more than $70,000 each of the past two years) you will not be able to invest in any trust deeds in Nevada. Our typical investor has a net worth of many millions, but don’t let that stop you. They started somewhere also. Most of my investors love this investment and the majority of their money is invested in trust deeds.

WHY DO I NEED A BROKER?

First of all, it’s the law. Federal law makes it a requirement that any private money loan on any 1-4 unit residential property be handled by a licensed mortgage broker. That’s because a broker will make sure the loan complies with RESPA, TILA, HOEPA, DODD-FRANK, SAFE-ACT and a host of other federal and state laws, and the broker will make sure that the borrower’s rights are explained clearly and completely and not unintentionally violated;

  • we make sure the borrower qualifies by underwriting his income, his employment, his credit;
  • We make sure that both the investor and the borrower sign all of the legally required paperwork;
  • We monitor the payments each month;
  • We notify the borrower when they are 60 days away from the balloon payment;
  • And we take care of everything else that needs taking care of.

P.S. Borrowers are allowed to pay you back on their own schedule. Many times you will receive $1000 extra per month, which increases your equity position (always a good thing).

WHAT DO I DO?

Pretty much just sit back and receive payments deposited directly into your bank account by the 5th of every month. And if the payment is late, you get a $75 late fee added into your deposit!

HOW MUCH DOES IT COST ME?

ZERO. Zilch. Nothing. Nada. Unless you invest with a self-directed IRA and then you might have some fees that are charge by your custodian when money comes in and out of your account. The borrower pays all fees. You even get your wire transfer fee paid back. If you have to foreclose, you will have to front the money to start the foreclosure ($800-$2000). But if the borrower comes current, you get paid back everything you have paid to date. And if the borrower doesn’t come current, then you get paid back at the auction when someone buys the properties, plus you get the default interest and late fees. And if you don’t get paid back at the auction, you will get the property back and be able to sell it and you get paid back EVERYTHING first, and then you get paid back your portion of the profit.

If you are ready to hear from us, or ready for more information, sign up here and we will contact you discuss your options.

As of Today
In business since February 2002. Investing in trust deeds since 1997.

LOANS FUNDED

LOANS PAID OFF

LOAN LOSSES

OUR EXECUTIVE TEAM

Corinne Cordon - Owner and President

Corinne Cordon

I am the one that prices the loan with the customer.  I give them the rate, term and fees.  If I don’t like the borrower or the deal, I turn it down.  If I am satisfied, I put it on the website.

Matthew Dale - Investor Relations Manager

Matthew Dale

Our Investor Relations Manager – Matthew Dale. He will probably be the first person you speak to if you are an investor, as he will be calling to get your paperwork done.  He will help you to choose loans and he will make sure you get whatever paperwork  you need to make an informed decision.  There is paperwork before you become an investor, and paperwork for every deal.

OUR CLIENTS SAY

Dear Corinne: Thanks to you and your extraordinarily competent staff at Capella Mortgage.

Once the contract was signed, we applied for the reverse mortgage. We were continuously assured that we were qualified and that the mortgage was virtually “in the bag”. Then, two days before the closing date, we were told that because my wife was still working in San Jose, that she couldn’t meet the occupancy requirements specified in the underwriting regulations. In other words, she had to retire and we could have the mortgage approved, but that wasn’t something she could do just yet. She had worked for Toshiba for 24 years and 10 months, and she could not quit until she reached the 25 year mark.

You have helped my wife and me to secure a comfortable level of financial security during our retirement years and saved us from a possibly devastating situation. This is our story.

We (my wife and I) first met Corinne Cordon/ Capella Mortgage Corp. (A Hard Money Lender) in early 2011 to finance two high-rise condos we have in Vegas. She was very positive from the first that she would be able to help us, even though it is very difficult to finance high rises. We were impressed and decided to go with her.

 

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TRUST DEEDS?
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