CA Trust Deed Investment
California Trust Deed Investments is a term used to describe the process of funding
private loans secured by california deeds of trust. A deed of trust is a three
party legal instrument that conveys title of real property by the
borrower(trustor) to a trustee who holds it as security for the lender or
promissory note holder(the beneficiary) in case the borrower fails to make
repayment of the loan or defaults according to the terms set forth in the
promissory note. Simply put, a California deed of trust(also known as
California Trust Deed) is a security instrument used to pledge collateral to a
lender in exchange for the receipt of a loan by a borrower. This is typically
required by the lender in case a borrower fails to repay a loan according to
previously agreed upon terms.
In the market place, California Trust Deeds refer to the private funding of real
estate loans and the investment in individual promissory notes secured by deeds
of trust. The information below is intended for individuals or companies who
have experience in California Trust Deed Investments, or who are familiar with
real estate investing in general.
We are actively receiving requests for loans on a weekly basis. We seek experienced
investors who are comfortable with real estate. If you are interested in
funding individual loans secured by California Trust Deeds, please review the
information below or contact us directly.
Overview
The information contained within is meant to provide information regarding the
opportunity of funding loans secured by trust deeds. We have provided
information about ScottWay Capital and what we can offer to an investor. In
doing so you will find information about loan opportunities and subsequently
investment parameters. Furthermore, we will talk about the security measures
that are in place to help mitigate risk and the general funding process. For
specific inquiries please call (619) 209-3544 or click Invest In California
Trust Deeds
Who We Are
Thank you for choosing ScottWay Capital. ScottWay Capital is a private lender who
organizes and writes private money loans for California property owners. We
write both commercial and residential loans. The borrowers who we work with are
individuals and real estate investors who have a need to borrow money, but who
are unable to seek conventional financing. As a result, we seek out and work
with private investors and individual lenders to facilitate funding for
borrowers who are seeking california hard money real estate loans. We help our
borrowers organize real estate financing for their unique projects. In doing
so, we are frequently working with investors and lenders to fund loans and
subsequently invest in California Trust Deeds. We work with our clients and
lenders in a capacity that creates mutual benefits for all parties involved. At
ScottWay Capital it is our standard to be completely direct and operate in a
manner that serves everyone’s best interest. We are licensed with the
Department of Real Estate, license #01777939.
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California Trust Deed Investment Parameters
Below you will find information regarding the structure of our loans and subsequently
the terms of our notes. We have summarized information regarding yield/interest
rates, property types, loan amounts, ltv, client profile and important notes.
Yield
We have notes available that accrue interest at rates ranging anywhere from 9-15%
depending on property type, lien position, use, associated risk and market
boundaries.
Property Type
We lend on both residential and commercial properties. Because they are very different in
nature, we ask that you specify which type of properties you feel comfortable
funding loans for. As an equity based lender, we will substantiate value and
seek opportunities with low LTVs. We will review both property types in more
detail below.
Residential
ScottWay Capital makes loans for non-owner occupied property and will consider owner
occupied property in affluent jumbo markets. At all times, we obey federal and
state regulations regarding lending practices. When considering residential
real estate we look to identify the condition of the property and then seek
comparables in near proximity to substantiate value. Our lists of comparables
will contain recently sold, active and justified pending sales. From this
value, we will base lending decisions. Ultimately, we look to an independent
appraiser to determine value.
• Non-Owner
• Jumbo Owner Occupied
Commercial
When underwriting commercial loans we will evaluate a number of factors. We will
consider office, retail, multi-family, and special purpose properties. Along
with borrower information, ScottWay Capital requests financials for the
property so that adequate income and expenses can be determined. By evaluating
an accurate NOI, along with a comparable cap rate, we will determine market
value along with the suggested DSCR. After determining market value and
conducting basic underwriting, ScottWay Capital can make an informed loan
decision. With all our transactions, we will look to a qualified and
independent appraiser to determine
Value
• Office
• Retail
• Multi-Family
• Special Purpose Property
Loan Amounts
• Residential – $50,000 – $5,000,000
• Commercial – $250,000 – $100,000,000
LTV/CLTV
• Refinance/First Trust Deed – 65% LTV
• Purchase/First Trust Deed – 65% LTV
• Refinance/Second Trust Deed – 65% CLTV (70%, case by case)
• Purchase/Second Trust Deed – 65% CLTV (70%, case by case)
Our Clients
As mentioned previously, our clients are made up of individuals, residential and
commercial real estate investors. Typically, our clients seek us out when they
are unable to secure conventional financing. This could be for a number of
reasons. Equity based lending provides a valuable solution when the following
occurs; borrowers’ need a loan when limited time is a crucial factor, financial
distress due to life events, investors who seek to leverage capital for
additional investment, and restrictive lending policies of conventional
institutions in a market cycle downturn.
Important Notes On How We Operate
It is important to note that we do not pool funds. We match up a borrower to a single
investor so that there is complete clarity for the parties involved. As a
result, we do not fractionalize trust deeds and offer only whole trust deeds
for investment. When making decisions regarding your money and well being, we
urge you to contact your Accountant, Financial Advisor and/or Attorney. This is
why we seek relationships with existing California Trust Deed Investors and
more specifically, San Diego Trust Deed Investors, Los Angeles Trust Deed
Investors, Santa Barbara Trust Deed Investors, and San Francisco Trust Deed
Investors. However, we do welcome new investors who are familiar with real
estate and feel comfortable with the associated risks and practices.
Call (619) 209-3544 or Invest In California Trust Deeds
Security Measures
ScottWay Capital takes precaution in writing quality loans by establishing internal
policies and utilizing legal instruments to help insure a sound transaction
that is protective of everyone involved. Listed below are some the instruments
and policies that we use to help create a transparent transaction.
Escrow
ScottWay Capital uses a licensed escrow company to act as an independent neutral third
part to monitor and fulfill the terms of the loan transaction. Escrow companies
have stringent laws advocacy that they must abide by and as a result provide a
fiduciary responsibility to each party involved in the transaction.
Title Insurance
We use title insurance to insure each deed of trust. Title insurance insures that the
recording of the deed of trust is done so accurately. It will confirm, lien
position, borrowing entity and subsequent rights the borrower to ownership and
entitlement. Upon completion of the loan, a copy of the title report will be
provided for your records.
Hazard Insurance
Home Owner’s insurance is required to be maintained in the event that fire or storm
damage the property. The amount of insurance has to be sufficient to cover the
loan or replacement costs of improvements.
Appraisal
As a tool for evaluation, an appraisal is used to value the real property associated
with each transaction. ScottWay Capital uses an independent appraisal company
to value each property. After completion, a copy of the appraisal will be sent
to you for review.
Income Documentation
As a value based lender, the piece of property being used as collateral is analyzed
very closely. To further our understanding of the transaction and the borrower,
we review income documentation to establish the borrower’s ability to repay the
loan. As a result, the borrower’s information is reviewed in equal measure to
the underlying collateral.
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The Process
The process begins with your interest. After we have identified your investment
objectives and criteria, we will begin presenting trust deed opportunities to
you as we receive them. At the beginning of each transaction we will present to
you a a summary of the transaction. This will help determine your interest
level and identify any potential issues. Upon reaching a commitment level from
you, ScottWay Capital will send you an entire loan package that would consist
of the following:
• Loan Summary Worksheet
• Loan Application
• Credit Report
• Title Report
• Appraisal
• Disclosure Forms
• Income Documentation
• And any other pertinent information
After you have reviewed the information and completed your due diligence, we will
begin arrangements to finalize the transaction, notify escrow and request funds
be wired to escrow. Once escrow has completed the details of the transaction,
money will be released to the borrower and notice will be sent to you. You will
receive a copy of the entire package along with your legal documents. Generally
this would include:
• Original Promissory Note
• Certified copy of the recorded deed of trust
• Title Insurance Policy
• Fire Insurance Loss Payee
Call (619) 209-3544 or Invest In California Trust Deeds
Begin The Process Today
As you may already know California Trust Deeds are a wonderful opportunity to make
California real estate loans. Attractive yields ranging from 9-15% make trust
deeds a wonderful investment opportunity. Whether you are interested in
residential or commercial trust deeds, first or second lien positions, ScottWay
Capital is a valuable source for private trust deeds. We work with borrowers
and investors alike to meet objectives that are mutually beneficial. We are
very direct in our communication and believe that transparency is essential. If
you would like to begin investing in trust deeds today or you have questions,
please call (619) 209-3544 or Invest In California Trust Deeds
We welcome your inquiries.
