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