What Is A Trust Deed Investment Firm?
Banks make real estate loans and earn interest on the money they lend out, but it isn’t only banks that can do that. Hard money lenders (also known as private money lenders) also make real estate loans. Most bank type lenders get their money from a line of credit or deposits from customers. However, private money lenders offer their loans to their private investors. Those investors pick the loans they like and they wire their money into the title company. The mortgage company (like Capella Mortgage) manage the entire process, underwrite the loan, complete their due diligence, arrange the funding with the private investor, close out the loan, set up the servicing, and manage any problems or questions that come up during the life of the loan.
Licensed Since 2002
Capella Mortgage has been in business since February 8, 2002. We offer trust deeds and fund investments on a variety of properties. Our average loan size is $500k. Investors can invest in deals together, and investors can park their payoffs into one of our funds until they find a trust deed they like. We can make loans in 35 states, but we typically only lend in Nevada, Arizona, Texas, Colorado, and Idaho.
If you would like to sign up as an investor with Capella Mortgage Corp, click the button below and fill out the form. We will contact you and discuss your investing experience. Whether you are a newbie, or have been doing it for 25 years, we will answer all of your questions and get you set up quickly on our portal.
Sophisticated Investor Portal
Capella Mortgage developed its first investor portal in 2010 so that investors could review all of the documents in the loan file without having to come into the office. Since that time, Capella Mortgage has given investors access to more data, more photos, and more technology than any of the other trust deed investment firms in the country. Investors can review available loans, reserved loans, and chosen loans, as well as track their investments in the Capella funds, view the loans in the funds, and download their K1’s and other loan related documents.
how are we different?
24 Years In Business
We’ve loaned over $1B since February 2002. We have a team of staff that have been with us on average 9 years. We are family owned, and we take care of our investors. There are no guarantees in investing. But investing in trust deeds – (also called hard money lending) – is extremely rewarding and still one of the best kept investment secrets in the world. We can show you how to profit from it….even if you are new to the game.
We Get the Financials
Strangely enough, most hard money lenders do not complete financial due diligence. In Nevada, it is the law, but it still doesn’t get done. We are not an “asset based lender” that looks only at the value of the real estate. We get all types of financial documents from the borrowers, and we examine them. Then we ask…Does the property have equity or equity after it is fixed up? Does the borrower have experience? Does the borrower have character? Does the collateral have issues that are too risky? Does the borrower have that “don’t quit”attitude?
How Much Money Do I Need to Start?
In Nevada, you must have a net worth of $250k, NOT INCLUDING YOUR PERSONAL RESIDENCE, in order to invest in trust deeds. If you have an IRA, then you yourself must meet the net worth requirements. If you want to invest in the open-end funds, then you must have a net worth of at least $1M without counting the value of your personal residence.
How Much Can I Make at Capella?
Trust deed investments typically offer a fixed interest rate—usually between 9% and 13%—and, like any investment, they come with both advantages and risks. If you’re new to this type of investing, don’t worry—we’ll guide you through it.
Nevada state regulations limit how much you can invest based on your net worth, and they also cap the amount you can place into a single trust deed. Additionally, if you’re investing in funds—whether a closed-end (fractional trust deed) or an open-end fund (backed by multiple properties)—you must meet certain federal net worth requirements.
We’re not being nosy—we’re just following the rules!
THE OWNERS OF CAPELLA MORTGAGE
Matthew Dale
Matthew Dale began working at Capella Mortgage as a teenager in 2011, initially helping out in the office at the request of his mother, Corinne Cordon. Unenthused by filing paperwork, Matthew took the initiative in 2013 to assume the role of Investor Relations Manager, feeling the position was not being effectively handled at the time. Today, he is the broker and 50% owner of Capella Mortgage. He oversees the firm’s highly conservative investment vehicle, Capella Fund I, manages legal and default processes, supervises draw processes for construction loans, and leads all loan originations.
Corinne Cordon
Corinne Cordon comes from a technology background and made her first trust deed investment in 1997—a nerve-wracking experience that ultimately proved successful. After nine payments over nine months, she received her principal back and was hooked. Over the next few years, she gained firsthand experience in the industry and quickly recognized a troubling pattern: many brokers and borrowers were not acting in good faith. Determined to create a safer, more transparent investment environment, Corinne founded her own company focused on secure trust deed investments. Unlike many brokers who enter the industry by learning from others and then poaching their investors, Corinne built her business with integrity from the ground up by leveraging the internet. In addition to running the company, she has developed three origination systems, the most recent of which is built on the Salesforce platform and gives investors a 360 view into their investments.
FREQUENTLY ASKED QUESTIONS
How soon can I get a trust deed?
The answer is....it depends on how much you have to invest. Smaller amounts take longer to place unless you go into a fractionalized trust deed.
What is a "fractionalized trust deed"?
Fractionalized means that you do not own the whole trust deed to yourself. For 20 years, 95% of all Capella trust deeds were single investor trust deeds. But there are not very many little loans available any more. Homes and real estate are expensive, and borrowers have less down payment to put down. Therefore, there is a good chance that you may decide to invest with other investors into a trust deed. If that is the case, Capella Mortgage will still manage the entire process. You will probably never even meet the other investors.
What are the rules if I want to park my money into a Capella Fund?
To invest in the Capella Open End Fund, we are required to have a relationship with you. This means we must understand your financial situation and risk tolerance before moving forward. While we believe funds are generally safer and more convenient than individual trust deeds, they still carry risk—and we want to ensure that you're an experienced investor who understands those risks.
cAPELLA MORTGAGE
helpful hints
Lending on commercial real estate in many states does not require a license. However, Nevada and Arizona do require a license, whether for residential or commercial real estate loans. If you are going to lend money on a property in those states, make sure you verify that the broker is licensed in that state and don’t believe them when they say it isn’t necessary.
basics TO SAFE INVESTING
- Always wire to the title company!
- Always get a title policy!
- Never ever give your money to a broker!
- Always review the due diligence that the broker has collected!
- Always make sure your name is listed as loss payee on the insurance policy dec page