INVEST TRUST DEEDS FAQ
COMMON QUESTIONS ABOUT CAPELLA AND TRUST DEED INVESTING
NEW TRUST DEED INVESTORS HAVE MANY QUESTIONS. HERE ARE ANSWERS TO SOME OF THE MOST COMMON QUESTIONS.
A Trust Deed is a recorded document which places a lien against the subject property. The three parties to a trust deed are the trustor (Borrower), the beneficiary (Investor) and the trustee (usually a title company.)
Once you have been given access to our Investor Portal you will see the Trust Deeds available to invest in or purchase. When you have found a property you’re interested in, you place your “reservation.”
Investors are given the opportunity to invest in any trust deed they want. Therefore you choose the deal you like, and whatever rate is posted on the portal, that is the rate you get. Some of our investors only take low LTV loans, and they earn an average of about 8% per year, and other investors have a higher risk tolerance, taking higher loan amounts and higher LTV’s, and therefore, their average rate of retun is about 11% per year. A lot depends on how much you have to invest. And remember, it is against the law to “guarantee” a return or ROI.
AFTER you have reserved a TD, we will proceed to draw the loan documents. Once the borrower has signed the loan docs, you will receive wire instructions. On an individual trust deed, you will wire to the title company. If you invest in a fund, you will wire to the Fund account.
There are quite a few advantages to investing with us. Besides our track record of performance and quality loans, you can:
- Speak to other investors.
- Use our mobile app on your phone or tablet to make reservations
- Capella Mortgage handles much of the work for foreclosures, and modifications
- We’ve never lost our license or been suspended.
- Our investors love us!
Only if you have a net worth of $1M, not counting the equity in your home. Or you make $200k per year, or you make $300k between your spouse and yourself. Funds are a great way to diversify for the more experienced investors. Once you are accredited, and you are tired of reserving loans all the time, call us and we’ll explain the Funds.