Trust Deed Investment
Trust Deed Investment
Q: What type of investments does Cal Pac Capital offer?
A: Cal Pac Capital offers trust deed investments that are all secured by a recorded deed of trust on non-owner occupied commercial or residential property.
As a trust deed investor, you effectively act as a mortgage lender for a borrower. Cal Pac Capital underwrites and brokers a loan to a real estate professional. You provide all or a portion of the loan proceeds. The borrower signs a promissory note at a stated interest rate. A trust deed against the property, typically in first position, is recorded naming you as beneficiary, which provides collateral to secure the borrower’s obligation under the promissory note. You receive monthly payments at the agreed upon interest rate. When the borrower pays off the loan or the loan term expires, you receive payment for your principal investment and any remaining interest owed.
All investments are property specific and not pooled with other investments. Therefore, before deciding to invest in a specific deal, you will be able to review pertinent documents such as the appraisal report, title report and borrower application.
To view some of our recently closed transactions, go to our Recent Loans page.
Q: Who can invest in trust deeds?
A: Qualified individuals, IRA accounts (self-directed), Company pension plans, Corporations, Partnerships, Trusts or Estates.
Q: How much do I need to invest in trust deeds?
A: Cal Pac Capital currently does not service individual investments under $25,000.
Q: When will I receive my principal amount back?
A: Typical loan terms are between 6 months to 3 years.*
Q: How are my investment returns paid?
A: Typically you will receive a monthly payment representing your portion of the interest rate on the loan. When the borrower pays off the loan amount, you will receive payment for your principal investment amount plus any remaining interest owed.* Payments are processed by a trusted third-party independent loan processing company who can arrange to have your payments deposited directly into your bank account.
*Notwithstanding Cal Pac Capital’s experience and rigorous underwriting standards, investments in trust deeds secured by one or more interests in real property are subject to risk of loss. Past performance is no guarantee of future performance. There is no guarantee that the returns described above will be realized. This is not an offer to sell or a solicitation of any offer to buy any securities. Offers are made only by prospectus or other offering materials. To obtain further information, you must complete our investor questionnaire and meet the suitability standards required by law.