We have multiple reasons in case you wonder why Capella? Is it for me? Can I trust you?
We never touch your money. Your money goes straight into the title company. Your monthly payments go straight to an independent, licensed loan servicing company and from there, direct deposited into your account within 24 hours.
We are passionate about this, and there is not a single argument in the world that could convince me – or any accountant – that there is a reason to have the loan serviced in house. Take a look at the trust deed brokers that got into trouble over the past decade. What is the one thing they did every time? They co-mingled funds.
That means they used their investor’s funds when it was time to pay payroll, or they said they invested the funds, and then went on a cruise. We do every bit of service any other broker can, and still use an independent, third party loan servicing company – that is – I repeat – not OWNED by Capella or any affiliates. Look into the ownership – follow the trail of LLC’s and corporations – and make sure that a disinterested third party – who is regularly audited – is the one touching the money.
We show you everything in the file. You sign in to the portal and you look at everything we look at. Moreover, you are always welcome to come into the office where we’ll show you everything in the file and explain what we look for and why we decide on one borrower and not the other. Why? It’s not like you are an underwriter…right? (or maybe you are!) But how are you going to learn how to spot a good loan if you don’t learn how to read a credit report? There is quite a bit of security around the cloud, but there are some things you cannot look at until you are the registered, confirmed investor for that particular deal (like the credit report, because our contract with the credit agencies do not allow us to distribute the credit report in any manner, so you must come into the office to get a copy). You’ve got to look at what you are investing your money in and we will teach you how to read the documents so that you can understand why the borrower needs your money.
If a payment is missed, we don’t wait around trying to figure out what to do or try to protect the borrower. Unless there is a really good reason for the late payment, we start foreclosure within 30 days on investment properties and 90 days on owner occupied properties (federal law). Nevada is a non-judicial foreclosure state. That means no court involvement. Nevada is also a “landlord friendly” state, unlike our big neighbor to the West. If you knew that you would be able to live “rent free” for 2-3 years before you were evicted from your home, what would you do? Exactly! That’s why our borrowers are told that we will begin foreclosure on the first possible day; raise the interest rate to 24% on day 20 and charge a hefty late fee on day 6 (investment properties only, can’t do that on owner occupied properties). Not to punish, but to prevent. If something happened, and there is a good reason for the late payment, then you and I will talk about it, and decide whether or not to waive the fees – one time only.
Frankly, we would not trust any trust deed broker that didn’t do it this way. There are lots of laws on the books regarding these investments. The laws only work if they are followed. And first those laws must be read and understood. Why Capella? Our commitment to you is that all of us at Capella Mortgage care enough to read the laws, stay up to date on the laws, understand the laws, discuss the laws, investigate the changes that are going to be made in the law, and follow the laws to the highest degree possible. We are constantly teaching our staff the laws and the reasons why we have to do things the way we do them.
Trust deed lending is an excellent investment for your portfolio or retirement account. We place trust deeds on many beautiful properties with well qualified borrowers. Many investors have asked why borrowers will pay 9-12% for a loan in the current climate of low interest rates? The reasons vary, but generally we fund excellent opportunities that have to close fast and borrowers want to take advantage of a great deal. The higher interest rate they pay pales when compared to the investment opportunity they realize by the purchase. These are investments that pay a 12% interest rate fixed over the life of the investment – they are not variable. They require no ongoing analysis, no moving funds every month and no watching the market.
As of 2009, ONLY licensed brokers can make hard money loans on residential real estate (whether owner occupied or investment), and that is because the brokers must be able to follow RESPA, TILA, MIDA, SAFE ACT, HOEPA, DODD-FRANK ACT, AND SECTION 32. We are licensed with the state and federal government, compliant with all laws, and fast, fair and friendly to all. Our level of professionalism, customer service and ethical and honorable actions will be just what you’ve been looking for, and your return on investment will be just what you expect. This investment can be done with funds from your Roth IRA, self-directed IRA, 401K, checking or savings accounts, stock accounts, or any other accounts that have funds available. Our investors all say that this best kept investment secret of the century, and we think they are right. We have studied every single other investment option out there, and if you want one where you do not have to roll the dice, then trust deed lending is for you. Once you get a few under your belt, you won’t be able to stop!
Maybe the best thing of all……… there are no fees involved in this investment – unless you have to foreclose, and then yes, there are fees to pay before you can get the property back.