INVEST TRUST DEEDS FAQ

COMMON QUESTIONS ABOUT CAPELLA AND TRUST DEED INVESTING

NEW INVESTORS HAVE QUESTIONS ABOUT TRUST DEEDS. HERE ARE SOME ANSWERS
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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.)

Investing in Trust Deeds means you invest in short-term loans which use real estate as collateral. Trust deeds offer high ROI with low risk as the investment is secured by the value of the property.
The returns on Trust Deed investments typically range from 8%-12% based on the parameters of the loan. Factors like term, property type, Borrower experience, etc. will determine the rate of return on the investment.
As mentioned, Trust Deeds are secured based on the current value of the collateral property instead of the projected future value. This more conservative approach to investing helps minimize risks to investors.
If a Borrower defaults, the Investor (Lender) can foreclose on the property. We set low Loan-to-Value (LTV) ratios so the Investor can sell the property quickly, if necessary, to recover their investment and maybe even realize a profit.
In the unlikely event a property loses value, the Borrower is still required to make payments and pay off the amount they initially borrowed. This is the reason we set low LTVs to help protect our Investors from losing money.
NV state law requires that you meet a minimum of either a) a net worth of $250,000 – not including the equity in the house you live in, or b) an income of at least $70,000 or more for each of the past two years.
We have Trust Deeds for Residential and Commercial properties alike. Our residential TD’s range from Condos to Single-Family Residences, and our commercial TD’s are on a wide variety of businesses and opportunities.
It’s easy to sign up as an Investor with Capella Mortgage! Simply visit our Investor Sign Up Page and complete the form found there. In a few minutes you’ll be on your way to becoming a Trust Deed investor.
Once you’ve been approved as an accredited investor you can start to explore the TDs we have available to invest in or purchase outright inside our private investor portal. This is where you will have full access to our inventory.

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.”

Once you have access to our Investor Portal, you can reserve any of the available TDs. This is done with a simple click of a button. Once reserved, we will contact you with further details of the loan.

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:

  1. Speak to other investors.
  2. Use our mobile app on your phone or tablet to make reservations
  3. Capella Mortgage handles much of the work for foreclosures, and modifications
  4. We’ve never lost our license or been suspended.
  5. 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.

LEARN HOW YOU CAN INVEST IN TRUST DEEDS WITH CAPELLA MORTGAGE
  • CALL US TODAY! (702) 214-4700
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CAPELLA MORTGAGE IS LICENSED IN:
NV, CA, AZ, NM, TX, CO, & WY