WHAT IS A TRUST DEED INVESTMENT

A Trust Deed is a Security Instrument recorded with a County Recorder, creating a lien against Real Property (Real Estate).

Trust Deeds come in different lien positions, such as first trust deeds and second trust deeds. This has to do with the priority of recording of the trust deed against the property.

A Trust Deed Investment is the making of a loan to a borrower who executes a Promissory Note and Deed of Trust secured by their Real Property. If the borrower fails to pay the loan as promised, the Deed of Trust allows the lender to take possession of the property through a foreclosure procedure and, ultimately, resell the property to recapture invested capital.

California Western Financial Investments, Inc. raises funds for Trust Deeds from private sources such as individuals, pension funds, and IRAs, as opposed to institutional sources, such as Banks, Savings & Loans.

EVALUATION AND DUE DILIGENCE FOR A TRUST DEED INVESTMENT

THE PROPERTY (Asset Based Lending)

Equity is King - Liens vs. Value

We will inspect the subject property upon initial loan request (prior to ordering an appraisal and presenting to an Investor)

Location - as it relates to the opportunity - employment / economy / rental market

Appraisal - Full independent, licensedappraiser

Fund Control for ground-up construction and remodel / rehab

TITLE

Property Tax Service (monitor status of property taxes on longer term loans)
Title Insurance (ensures your lien position)

THE BORROWER

Use of Funds (Business Purpose)
Exit Strategy - Is it realistic?
Tri-Bureau Credit History (verify income and ability to make payment - Credit, if it relates to an Exit Strategy)
Loan Committee (Key Staff Members meet weekly to make sure that all the T’s are crossed and all the I's are dotted. We look at the Asset and Exit Srategy from all angles.)

Real Estate Broker - CA Dept. of Real Estate - License #00658654