Office Information

ScottWay Capital - Phone: (619) 209-3544
Broker Of Record - Morgan A. Scott
California BRE #01777939
1106 2nd Street Suite 823 Encinitas, CA 92024

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.

Call (619) 209-3544 or Invest In California Trust Deeds

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.

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