© LEND TRUST DEEDS · CALIFORNIA
TRUST DEED INVESTING IN CALIFORNIA
Ready to fund Hard Money Loans?
If you are a seasoned investor, you have probably heard about hard money loans and trust deed investing. Maybe you have friends who have diversified their investment portfolio by loaning money out to real estate investors on a project. Or, maybe you personally have borrowed from a hard money lender on one of your real estate projects and "being the bank" caught your attention, so here you are wanting to learn more about how you can do the same thing with your capital.
© TRUST DEED INVESTING HIS OWN WORDS
1 TRUST DEED BASICS
TRUST DEED BASICS
Trust Deed investing involves lending money to borrowers that is secured by real estate. It's a powerful way to generate high yields, secure returns, and diversify your portfolio.
- Higher returns: Typically better than bank yields.
- Secured by real estate: Your investment is backed by the property's equity.
- Passive income: Receive monthly payments deposited directly to you.
2 INVESTMENT CRITERIA
HIGHLIGHTS
- Minimum Capital: California law limits investment in a single deed to 10% of your net worth.
- Property Types We Fund: Non-owner-occupied California properties.
- LTV: Lend up to 70% of a property's appraised value to ensure strong security.
- Who Can Invest: Individuals, corporations, IRAs, pension plans, LLCs, trusts, and more. (Check with your custodian for retirement account rules.)
- Investment Transparency: Before you invest, Loan Goat underwrites the borrower and property, providing you the full property profile, appraisal, borrower credit score, assets and debt.
© START INVESTING WITH US THREE STEPS
START INVESTING WITH US
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GET STARTED
Read how trust deeds work in California and tell us how you want to invest. The Department of Real Estate publishes the rules for investors; the two documents below are the ones to read first.
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GET MATCHED
Loan Goat underwrites the borrower and the property first, then sends you the file: property profile, appraisal, borrower credit score, assets and debt. You fund only a loan you have seen in full.
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GET PAID MONTHLY
Loan documents go to you for approval, then to escrow for signing. Payments are collected by the servicer and deposited directly to you each month for the life of the note.
© THE BROKER'S ROLE FIVE DUTIES
LOAN GOAT'S ROLE IN TRUST DEED INVESTING
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LICENSING
Mortgage brokers need to be licensed in some states, but not all, to originate business purpose loans. Each state has specific laws that mortgage brokers and lenders must comply with.
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GENERATING NEW LOAN OPPORTUNITIES
The mortgage broker generates new funding opportunities for trust deed investors. Loan Goat has generated inbound business through content marketing, SEO, a monthly email newsletter, previous relationships with borrowers and industry sources like real estate agents, mortgage lenders, accountants, and attorneys.
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UNDERWRITING & DUE DILIGENCE
Even on asset-based or equity-based hard money loans, mortgage brokers perform significant due diligence with new potential borrowers, including:
- Credit Report
- Background Check
- Financial Statements
- Real Estate Portfolio Verification
- Previous Project History
- Title Report with Lien Search
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GENERATE LOAN DOCUMENTS
Loan Goat uses The Weiss Group a law firm that specializes in private and commercial loans to generate loan docs for any situation in any state. When I say any situation, I'm talking about:
- Multi-Lender Loans
- Cross-Collateral Blanket Loans
- Different Vesting for Each Property
- First, Second, Third, & Fourth Lien Position
- Lender's Instructions
- State Specific Disclosures
- Title Coverage Requirements
When loan docs are ready, Loan Goat sends to the trust deed investor for approval and then onto escrow to schedule signing. Loan Goat uses Deltoro Loan Servicing to service hard money loans funded by trust deed investors.
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COMPETITIVE ADVANTAGE
Here's how Loan Goat has a competitive advantage against any other hard money lender in the nation. One of the most important questions that an investor would ask before funding a hard money loan is "what's the exit?"
Hard money loans are short term loans with a balloon payment at the end. Loan Goat specializes not only in hard money loans, but in non-traditional financing (non-QM).
Why is this important to you? If for whatever reason the borrower is not able to sell the property before the note is due or pay off the loan, then Loan Goat would refinance the hard money loan into a non-QM loan, securing their investors' investment which is a win/win for all parties involved.
Most hard money lenders are not licensed and cannot provide alternative financing. Loan Goat's CEO, Milad Shamoun, is licensed by the DRE and NMLS. He and his staff are subject matter experts not only on hard money loans but also on non-QM and business loans.
Part of our underwriting process is ensuring this hard money loan can be refinanced into a 30-year non-QM loan in the event the borrower matures on the loan. Loan Goat offers investors security and peace of mind.
© RESPONSIBLE TRUST DEED INVESTMENTS SERVICING
RESPONSIBLE TRUST DEED INVESTMENTS
Loan Goat uses Deltoro Loan Servicing to service hard money loans funded by trust deed investors.
© CAPITAL PARTNERS SPEED. PRECISION. EXECUTION.
BECOME A LOAN GOAT CAPITAL PARTNER
Unlock unparalleled access to exclusive deal flow, backed by the industry's most creative and reliable financing.
WHY PARTNER WITH US?
We're not just a source of capital; we're a strategic partner in your success.
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EXCLUSIVE DEAL FLOW
Access a curated pipeline of high-quality, pre-vetted investment opportunities you won't find anywhere else.
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IRONCLAD SECURITY
Your investment is our priority. We structure every deal with rigorous due diligence and capital preservation at its core.
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SHARED SUCCESS
We win when you win. Our model is built on aligned interests, creating mutually beneficial outcomes for long-term growth.
© PREMIER LENDING, PREMIER RESULTS
WE CLOSE DEALS OTHERS WON'T EVEN
JOIN A SELECT GROUP OF CAPITAL PARTNERS FUNDING THE FUTURE OF REAL ESTATE.
© PREMIER LENDING, PREMIER RESULTS CAPITAL PARTNERS
READY TO START BUILDING?
JOIN A SELECT GROUP OF CAPITAL PARTNERS FUNDING THE FUTURE OF REAL ESTATE.
© INVESTOR QUESTIONS SIX OF TWELVE
INVESTOR QUESTIONS
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Trust deed investing is lending your capital to a real estate borrower with the loan secured by the property and recorded against title as a deed of trust. The borrower pays interest monthly; if they do not, the property is the security. Loan Goat originates, underwrites, documents and services the loan; the investor funds it. In Loan Goat's own words, it is a powerful way to generate high yields, secure returns, and diversify your portfolio.
Trust deed investing with Loan Goat Also answered under Investor FAQ
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The risk is real and it is managed the same way on every loan: the note is secured by the property, leverage is capped (Loan Goat lends up to 70% of a property's appraised value), the borrower and the property are underwritten before you fund, and the exit is planned. The main risks are a borrower who stops paying and a market that falls; equity and underwriting are the cushion against both. Ask how a specific loan is structured before you fund it.
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Each investment is secured by a recorded deed of trust on non-owner-occupied California property, and Loan Goat lends up to 70% of the property's appraised value so there is equity beneath the loan. Before you fund, you receive the full property profile, appraisal, borrower credit score, assets and debt. Lien position and structure are set per loan.
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Trust deed yields are typically better than bank yields, because you are being paid to provide short-term, property-secured capital that banks will not. The rate on any specific note depends on the loan's leverage, term and risk, and it is stated on the loan documents before you fund. We do not publish a blanket figure; ask about the loans currently available.
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Monthly. Payments are deposited directly to you as passive income. Loans funded by trust deed investors are serviced by Deltoro Loan Servicing, which collects from the borrower and remits to the investor.
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Yes. Loan Goat Inc. is licensed with NMLS (Company NMLS 1416824, Branch NMLS 2554618), and its CEO, Milad Shamoun, is licensed by the DRE (DRE# 02099815) and NMLS. Licence records are public on NMLS Consumer Access.
© GET STARTED TRUST DEED INVESTOR · CAPITAL PARTNER
START INVESTING
Tell us whether you want to fund trust deeds or partner on capital, and a member of the team will reach out. Or just give us a call now: (619) 617-2797.