Our Role

Welcome! Since 1978 we’ve arranged thousands of short-term trust deed loans secured by California real estate, funded almost entirely by private-party investors or qualified plans seeking a well secured, high yielding, monthly cash-flow vehicle for their investment capital. Whether you’re a seasoned trust deed investor seeking to diversify your portfolio, or a first-time investor thinking about getting your feet wet in a carefully arranged trust deed investment, here are a few details to consider:

  • EQUITY AND ITS IMPACT: While creditworthiness and determining a borrower’s ability to repay are both significant considerations in any loan decision we make, they are secondary to the primary ingredient — determining how much protective equity remains after the loan is consummated. Generally speaking, the greater ‘the margin of equity’, the greater the degree of safety. Expressed as a percentage of market value (as determined by independent appraisal), we typically won’t arrange a loan or loans that exceed 60% of value; therefore, there’s usually protective equity of 40% or so….often more, and in some cases, a lot more!
  • Due Diligence: As one of our trust deed investors, you essentially become the bank, receiving a true ‘retail’ return on your invested capital. We take care of the details! Each carefully selected investment opportunity we offer undergoes many highly detailed phases of analysis and consideration before it is offered to you for investment. Starting with a basic loan application along with a thorough review of supporting documents (including a title search and escrow) — plus (and very importantly) an independent appraisal of the applicant’s home or other real estate, each and every detail of the application and documentation is closely scrutinized to insure compliance with our strict underwriting guidelines, as well as both State and Federal regulations and requirements.
  • WHY US? WHY TRUST DEEDS? We’re quite proud of the fact that many of our current investors have been with us for 10, 20 and (in a couple of cases) 40 years or more. In fact, we still have on board the very first investor who funded the first loan we arranged back in 1978! Yes, experience counts! We do it right. That’s especially important today as the regulatory and compliance environment has become increasingly more complicated. That said, what takes place after any new loan closes is as critical as what took place during its origination. Professional, state-of-the-art loan servicing is essential. As you may know, on January 1, 2021, we exited the loan servicing arena and transferred our entire servicing portfolio to PLM Lender, Services, Inc., San Jose, California, https://plmweb.com/default.htm. Since that change, PLM has been nothing short of outstanding! Our investors have unanimously expressed tremendous satisfaction with the change and we couldn’t be happier. We continue to be a servicing party-in-interest and will work together to insure your interests are priority one. Be sure and visit PLM’s website for details on their amazing array of services. We ask you to consider the following:
    1. Each loan we arrange is secured by a recorded Deed of Trust bearing the investor’s name and vesting, along with the Promissory Note as well.
    2. We obtain a full ALTA Policy of Title Insurance on the investor’s behalf. This is not a limited coverage policy, but one that fully insures the investor’s recorded interest in the property.
    3. Trust deeds are very high yielding and generally provide for monthly cash flows. As such, they’re ideal for the individual, pension, profit sharing or IRA accounts.
    4. While not immediately liquid, investors can vary maturities, diversify and ladder their investments with us. That said, history has shown the average loan pays off in under 3 years…regardless of the originally stated maturity date. Seldom do our notes go to term.
    5. There’s hazard insurance on each and every transaction. Throughout the servicing process, we constantly monitor coverage to insure there are no lapses in coverage.
    6. Trust deeds are a hands-on investment, not some amorphous security on Wall Street the investor knows little or nothing about. Despite being independently appraised, many of our investors still opt to drive by the property to see it personally. Investors are encouraged to find their own comfort level and set their own parameters. Ultimately, it’s the investor that makes the decision on which trust deeds they find most suitable.

Sound interesting?

Simply give us a call at (714)245-7550. Be sure and ask for Don Lyons, our President. He’ll be glad to answer your questions; learn about your goals and objectives, and discuss current offerings.

Alternatively, to join our mailing list or to receive further information, please feel free to complete and email the “Investment Opportunity E-card” below.

DRE Publication

It’s free and easy to download the Department of Real Estate publication
“Trust Deed Investments; What You Should Know”.

Investment Opportunity E-Card