Our Real Estate Trust Investors Are Currently Earning 7% to 12% Annually
We are happy to have the opportunity to bring the world of trust deed investing to you. Many investors have found that trust deed investing provides them with dependable monthly income, investment security, and peace of mind.
Now is a good time to invest in real estate trust deeds since the big banks and large institutional lenders are not making loans to many good quality borrowers who have good credit and income. This better quality pool of borrowers leads to lower risk while providing a higher rate of return when compared to other investment opportunities.
We arrange trust deed investments for private individuals, family trusts, pension plans, self-directed IRAs, and corporations.
While all investments do involve some level of risk, investing in trust deeds have a long history of providing investors great returns with a low level of acceptable risk.
Equity is a primary factor in our decision-making process and Loan to Value (LTV) establishes the equity protection. We are very conservative in our loan underwriting and approval process and typically won’t arrange any loan that exceeds 65% LTV of the property’s market value. In some rare circumstances, we will look at a transaction that is at 70% LTV but there must be many mitigating circumstances that provide an acceptable level of risk to our investors.
We have been assisting trust deed investors with their investments for close to 40 years. We have originated many millions of dollars of loans on behalf of real estate trust investors in Los Angeles. While trust deed investing can be very beneficial, it’s not for everyone. Investors need to know that trust deed investments are not considered liquid investments as opposed to stock investments that can be sold at a moment’s notice. Trust deed investments can be sold but can involve a lengthy process and often involve selling at a discount. Therefore, trust deed investing needs to be considered a long-term investment that provides investors an ongoing monthly payment.
Trust deed investing structures
- First Trust Deeds: recorded in first position and are only subject to county property taxes in order of priority
- Second Trust Deeds: recorded in second position and are subject to property taxes in addition to being subordinate to the first trust deed in order of priority
Our investment terms can range from less than 1 year to 10 years or more.
The form of monthly payment our real estate trust investors receive can be structured as follows:
Interest-only: This investment option is where our investor receives a monthly interest-only payment. This form of trust deed investing will have a balloon payment of the original principal balance due to the investor at the completion of the loan term
Partially amortized: This investment option is where the trust deed investor receives a monthly payment that contains both principal and interest. This payment option allows for a partial reduction in the outstanding principal balance which leads to a reduced balloon payment at the completion of the loan term
Fully Amortized: This is where a fixed monthly payment is paid to our trust deed investor that contains both interest and principal that pays down the outstanding principal balance so that, at the end of the investment term, the investor is paid back in full.
All loans are originated by experienced and licensed loan officers that possess an active real estate license issued by the California Department of Real Estate (DRE) or a license issued with the National Mortgage Licensing System (NMLS).
Short & Simple Investor Request Form
We are required to confirm that each of our trust deed investors meet certain government requirements. There are various ways to qualify. One of our investment counselors can assist with all necessary qualifying requirements.
If you would like to receive additional information about trust deed investing in Los Angeles or the state of California, please complete the Short and Simple Investor Form. We will get right back to you to further discuss the required steps and how trust deed investing can help you achieve your investing goals.
What to Know About Investing in Trust Deeds with Westar
Our management team oversees all aspect of the origination and investment process. Each Westar trust deed investor is entitled to the following:
- Conservative underwriting policies
- Extensive due diligence
- Fully disclosed loan terms to the Borrower
- Deed of Trust recorded against the subject property
- Promissory Note signed by the borrower
- Professionally prepared appraisal
- Title insurance for all trust deed investments
- Monthly loan servicing available
- Interest rates from 7% to 12%
Loan amounts range from $25,000.00 to over $1,000,000.00. We can structure a single trust deed investment or a multi-lender loan known as a fractionalized mortgage transaction.
We can offer our investors short-term or longer-term investments for those who are not looking to be active.
If you are a seasoned trust deed investor or looking to make your first trust deed investment we will patiently work with you in determining the type, interest rate, and term that best suit your needs. We are currently offering our investors first and second deeds of trusts secured by residential and commercial properties.
We personally meet with each borrower for every trust deed investment our company originates. We put each borrower through an extensive qualifying and underwriting process and we always comply with all required Department of Homeland Security requirements in confirming our borrowers’ identity.
Following are some of the main functions we perform for each loan submitted to our company for funding:
Appraisal of the subject property
Every property that will be the security for our investor’s investment is professionally appraised and evaluated by an experienced and trained appraiser licensed by the California OREA.
In addition, we inspect each property to verify all reports prepared by the appraiser and to perform an evaluation of the neighborhood and surrounding area. A determination as to the marketability of the property is calculated to confirm repayment to our investors.
Lender’s title insurance on the property
Every hard money loan our company funds on behalf of our investors is insured by an approved title insurance company. A full extended ALTA (American Land Title Association) policy is arranged for each deed of trust that we originate which ensures that the borrower is the legal owner and that the lien position is insured. Following the closing of the loan, each investor receives an original title insurance policy.
Hazard insurance for the property
All borrowers are required to carry a hazard insurance policy providing fire and liability insurance for the subject property. Each investor is added as an additionally insured party on each policy of hazard insurance.
Loan escrow services
All transaction are handled by either our in-house DRE licensed escrow or by an outside licensed escrow settlement company. The escrow will confirm that all documents and requirements have been satisfied prior to scheduling the closing of the transaction. After the closing, all authorized loan and settlement costs and any directed payments are paid by the escrow agent. Any net proceeds due the borrower are paid by the escrow agent. Prior to closing, the escrow is balanced and reviewed to verify that all expense and payment categories are correct prior to any disbursements.
Loan servicing for our investors
Our company works with a licensed, insured and bonded loan servicing company that can provide monthly loan servicing and property tax and hazard insurance monitoring.
Following the closing of the trust deed investment attention needs to be directed to the trust deed investment monitor. There are many other actions that must be performed monthly for each trust deed investment. They are:
- Collecting the monthly mortgage payments
- Monitoring the status of the first trust deed in the case of 2nd trust deed
- Confirming that property taxes are paid to the county tax collector
- Confirming that adequate hazard insurance is in place and payments are being made
- Overseeing the physical condition of the property
- The minimum investment that we will invest on behalf of our trust deed investors is $25,000.00. We structure individual and fractionalized trust deed investments
What others say about us…
Love these guys! I have been in the business for 10+ years and now I wont work with anyone else. Great people!
I am a paper person and I have never revived such organized & perfect paperwork in my life of investing in Trust Deeds. Beyond attention to detail this company. Thank you.
I have funded a few loans working with this company. Great company! Thank you.
I have worked with many brokers in my time. Most don’t know what their doing and make the whole deal fall apart. I would HIGHLY recommend this company. Nice and friendly team. They really know what they are doing. Cant wait to fund again.
EQUAL HOUSING LENDER
Some products may not be available in all states. Restrictions apply. All rights reserved. Pre-qualification is neither pre-approval nor a commitment to lend; you must submit additional information for review and approval. Approval may be subject to rate increases, satisfactory title and appraisal review, and no change in financial condition.
*Refinancing or taking out a home equity loan or line of credit may increase the total number of monthly payments and the total amount paid when comparing to your current situation.