INVESTOR FAQ

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

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.

More investor questions

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.

Investment criteria

Hard money loans are short-term with a balloon payment, so the exit is the first question we ask. Loan Goat specializes in non-QM financing as well as hard money, so if a borrower cannot sell or pay off before the note is due, the loan can be refinanced into a 30-year non-QM loan, which secures the investor's position. If a borrower defaults, the deed of trust gives the lender the remedies of foreclosure under California law.

How Loan Goat protects the exit

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 We do not publish a blanket figure; ask about the loans currently available.

Start investing

California law limits investment in a single deed to 10% of your net worth, which sets the ceiling per loan. The minimum depends on the loan being funded, and Loan Goat states the amount for each opportunity. Individuals, corporations, IRAs, pension plans, LLCs and trusts can all invest.

Investment criteria

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.

How servicing works

Yes: individuals, corporations, IRAs, pension plans, LLCs, trusts, and more can invest in trust deeds. For a retirement account, check with your custodian for its rules on real estate secured notes before you commit. Vesting is set on the loan documents.

Who can invest

Accreditation requirements depend on how an investment is structured. Individual trust deeds in California are regulated by the California Department of Real Estate, whose Trust Deed Investments guide explains the rules for investors, including the 10% of net worth limit per deed. Whether a given Loan Goat opportunity requires accredited status is confirmed when you enquire.

Ask about investing

Before you invest, Loan Goat underwrites the borrower and property and provides the full property profile, appraisal, borrower credit score, assets and debt. Due diligence includes a credit report, background check, financial statements, real estate portfolio verification, previous project history and a title report with lien search. You fund with the file in hand.

Underwriting and due diligence

Loan Goat uses The Weiss Group, a law firm that specializes in private and commercial loans, to generate loan documents for any situation in any state: multi-lender loans, cross-collateral blanket loans, different vesting for each property, first, second, third and fourth lien position, lender's instructions, state specific disclosures and title coverage requirements. Documents go to the investor for approval, then to escrow for signing.

Loan documents

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.

Licensing and disclosures