TRUST DEED INVESTING
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 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.
Benefits:
- •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.
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.
LOAN GOAT'S ROLE IN
TRUST DEED INVESTING
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.
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.
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
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.
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.
PUT YOUR MONEY TO WORK
READY TO START INVESTING?
Join investors earning secured returns with trust deed investing.