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Trust Deed Investments

Trust Deeds

Through our private money loan programs, Sunset Mortgage has created a niche out of lending to professional real estate individuals who buy property through distress sales and remarket them at a profit. These loans are made available to investors wishing to own a real estate secured investment earning a higher than bank Certificate of Deposit returns.
Of course all investments have risks associated with them, the same is true with Deeds of Trust. However, a nice feature of investing in Deeds of Trust is that most of the risk is compensated for by the security/collateral. Below are a few steps taken to insure a safer investment.

Lien Positions

Each Deed of Trust is title insured by an California title company. The title company insures that the Deed of Trust is recorded into the represented (1st or 2nd) lien position.

Fire Insurance

If the Loan is on an improved property, the borrower is required to keep fire insurance in an amount to cover the replacement of the improvements.

Loan Value

Each Deed of Trust is secured by a parcel of real estate. This real estate has value to it, an independent appraisal has been obtained for each parcel of real estate. A copy of the appraisal is included for review in your trust deed information package. The amount Sunset Mortgage lends to a borrower against a parcel of real estate is dependent upon several factors, such as borrower strength, property type and location.

Other Benefits

Additionally, Investment in Deeds of Trust offers these benefits.

  • Higher than normal returns (8 - 11%)
  • Secured by collateral worth more than the investment
  • Title insurance provided to insure your Lien Position
  • Trust Deeds offer a shorter foreclosure time than most mortgages, making Trust Deeds more Investor friendly

 

Recent Investments

San Pedro, California

A hard money loan recently closed on an apartment building in San Pedro, CA. The trust deed investment is at 12.5% and here are the details:

Loan amount: $120,000
Appraised Value: $195,000
Loan to Value: 61.53%
Term of loan: 1 year Details: Duplex

Long Beach, California

A hard money loan recently closed on a home in Long Beach, CA. The trust deed investment is at 11% and here are the details:

Loan amount: $120,000
Appraised Value: $195,000
Loan to Value: 61.53%
Term of loan: 1 year
Details: home built in the 1980's, 4 bedroom, 2 bath