What I need to know about investing in Trust Deeds with Computer Mortgage
How much can I earn on my Trust Deed Investment?
The investors yields may vary but are based on the terms of the note and Trust Deed selected by the investor. Depending on these factors, a trust deed investment yield will vary from 7% to 11% per year right now. Of course, this is based on what current trust deeds are available. Each individual investor may have different investment criteria. We will discuss the various details to make sure a specific investment is appropriate given your investment goals.
Please call us so that we may find an investment to suit your investment goal. Call 1-800-993-4199 and ask for Marc!
Computer Mortgage evaluates (The underwriting Process) each investment before determining if it meets our loan criteria. It needs to satisfy the basics, similar to the criteria used for Government backed loans, except we put ultimate faith in the property, that’s why this is called hard money (because it’s based on real estate, not because the loan is hard to get or hard on the borrower).
When underwriting a new loan applicant, we review the following items looking for negative indicators as well as the positive indicators. We use our own guidelines but also refer to published guidelines by the State of California. (See Trust Deed Investments, “What you need to Know” a publication from the California Board of Real Estate, RE35.)
Some of the documents we require and review are the following:
- Preliminary Title Report
- Loan application
- Credit Report
- Tax Returns
- Bank Statements
- Pay Stubs
- Other documentation that supports the application
Computer Mortgage provides complete servicing of the Trust Deed Investments we create for our investors. The servicing process is an integral part of the process that we provide, so all you need do is cash your check. We even direct deposit to your bank or investment account (See Direct Deposit).
Servicing is the process that needs to happen to make sure the asset underlying the Trust Deed is kept safe like making sure the fire insurance is up to date or that the property taxes are paid every year and of course collecting the payments every month and remitting earned interest and principal if any to the investor.
The Servicing Agreement discusses the scope of services and fees between the investor and Computer Mortgage. For a detailed discussion of this, please call us at 1-800-993-4199
Direct Deposit to your account
An investor can have the earnings on their Trust Deed Investment either sent in the form of a check or deposited directly into any account that will accept a direct deposit. This information is in the last page of the Servicing Agreement Form that the investor completes.
Demands and Collections
See servicing section
Our investors can review their Trust Deed Investments and payment history by logging on to their account here at Computer Mortgage.
Trust Deed investments are not for everybody. You should be a somewhat sophisticated financial investor who has sufficient assets and income so that this investment will not compromise your financial wellbeing.
The State of California Board of Real Estate requires that every Licensed Real Estate Broker use their best judgment to evaluate the advisability of the investor investing in Trust Deeds. (See Trust Deed Investments, “What you need to Know” a publication from the California Board of Real Estate, RE35.) Please see the form Investor Questionnaire RE 870.
Who can invest in Trust Deeds?
Trust Deeds are suitable for many types of investors. The following are eligible:
- Married Couples
- Retirement Plans
- Self-Directed Pension Plans
- Corporate Pension and or Profit Sharing Plans
- Corporations, Partnerships and LLCs.
For a detailed discussion of this, please call us at 1-800-993-4199