Trust Deed Investments

Why TaliMar Financial?

TaliMar Financial is the leading California Trust Deed investment advisor. Since 2008, we have funded over 550 trust deeds totaling over $200 million. Our focus is to provide high yield trust deeds while minimizing risk to investor principal. 

As a full service trust deed investment advisor, TaliMar Financial manages the underwriting, closing, and servicing of our trust deed offerings. We specialize in working with new and seasoned trust deed investors. Our platform ensures a smooth, transparent investment process.

Contact a Lender Account Specialist today at (858) 613-0111 to learn more about our trust deed investments. 

 

$180+ Million

IN SUCCESSFUL TRUST DEEDS

TaliMar Financial is one of the leading trust deed brokers in California. Our lending platform was developed to maximize yield and minimize risk. 

9.25%

AVERAGE ANNUAL YIELD

TaliMar Financial focuses on offering high yield trust deeds. Over 10 years, TaliMar Financial has averaged an annual yield of 9.25% secured on property at 61.37% of value. 

$40+ Million

ACTIVELY SERVICED TRUST DEEDS

Loan servicing is a critical component of a trust deed investment. TaliMar Financial currently services a portfolio of over $40 million in active trust deeds and prides itself on providing a full service investment platform.

What Is A Trust Deed Investment?

A trust deed investment is a Loan made by an investor (commonly referred to as the Lender) to a Borrower using real estate as collateral. The Borrower makes payments to the Lender per the terms of the Promissory Note. The term trust deed investment refers to the document or “Deed of Trust” that is used to secure the Loan to the property.

Investing in Trust Deeds can be an excellent alternative for investors seeking long term cash flow with the security of real estate. Trust Deeds traditionally offer higher yields when compared with other income generating investments. Unlike a mortgage fund or many crowdfunding platforms, investors are secured directly on the property with a Deed of Trust or Assignment.

WHAT IS THE AVERAGE RETURN OF A TRUST DEED INVESTMENT?

Trust deed investments yield returns of 8% to 12%+ annually. The yield will vary based upon the level of risk associated with the trust deed. These risks may include loan position (1st, 2nd, 3rd position), property type and condition, loan-to-value ratio, and financial strength of the Borrower. Payments are typically made on a monthly basis with loan terms ranging from 12 to 60 months.

WHO COLLECTS THE PAYMENTS?

Payments can be collected directly by the Lender or a third party Loan Servicer. The responsibility of the Loan Servicer is to issue monthly statements to the Borrower, collect and process payments, and submit the payoff demand once the Borrower is ready to pay off the loan. Most Servicers also offer foreclosure services. The cost of using a Loan Servicer is minimal and highly recommended.

WHAT IS A FRACTIONAL TRUST DEED?

A fractional trust deed, also known as a multi-lender loan, is a trust deed owned by more than one Lender. Let’s use a scenario in which three separate Lenders pool their money to finance a single trust deed. In this scenario, each Lender owns a 33.33% interest in the trust deed and thus each would earn a 33.33% of each payment. If the Borrower defaults on the loan and a decision to foreclose was required, that decision would have to be need to be approved by the majority interest holder in the trust deed or the aggregation of Lenders that make up the majority interest. In this scenario, 2 of the 3 Lenders would need to approve the foreclosure. Many states require that a fractionalized trust deed be serviced by a third party Loan Servicer.

WHAT IF THE BORROWER STOPS MAKING PAYMENTS?

One of the most common risks associated with a trust deed investment is late or non payment. If the Borrower does not or becomes unable to make the payment per the terms of the Promissory Note, the loan is considered to be in default and the Lender has the right to commence a foreclosure action (note, this is specific to trust deed states). Should the Borrower be unable to bring the loan current, the property is sold at a foreclosure sale. The proceeds from the sale will be applied to the unpaid principal, interest, and fees associated with the foreclosure action.

HOW DO I FIND A TRUST DEED INVESTMENT?

The most common ways of locating trust deed investment opportunities is to attend a local real estate investor networking event, post advertisements on real estate websites, or work with a real estate broker that specializes in trust deed investments. We highly recommend that new investors work with an experienced broker that is local to their market and has a strong understanding of state lending regulations.

WHAT ARE COMMON MISTAKES MADE BY TRUST DEED INVESTORS?

The most common mistake made by trust deed investors is funding a high yield trust deed without understanding the risk. We recommend new investors focus on trust deeds secured in 1st position on a single family or multi-family property at 65% to 70% of current value. Lenders in 1st position will get paid first when the property is sold or refinanced. Focusing on trust deeds secured at 65% to 70% of current value will lessen the risk of principal loss if the value of the property declines or a foreclosure action is required. Lastly, single family and multi-family properties are often much more liquid than other asset classes such as industrial properties or land, and therefore may retain their value better through a market slowdown.

INVESTING IN COMMUNITIES

RECENTLY FUNDED TRUST DEEDS

GET STARTED TODAY

TALIMAR LENDER PORTAL

TaliMar Financial has developed a proprietary online Lender Portal that allows Trust Deed investors to review and subscribe to our trust deed offerings. The Lender Portal is “real time” so investors can quickly review their current account balances, view recently posted trust deed offerings, and quickly subscribe to trust deeds that meet their specific criteria.

The Lender Portal does not replace the assistance of our Lender Account Specialists who are available to answer questions regarding new offerings or active trust deeds. 

Contact a Lender Account Specialist today at (858) 613-0111 to obtain access to our Trust Deed Lender Portal.

Trust Deeds = Cash Flow

Generate Strong Cash Flow. Trust Deed investing is an excellent option for investors seeking consistent monthly cash flow. As a trust deed investor, you receive payments monthly from the Borrower until the loan is paid off. Your principal investment is returned once the borrower repays the loan.

Offer High Yields. Trust deeds generally yield returns of 8% to 12%+ annually. The yield is based upon the risk of the trust deed which may include the loan position, property type / condition, borrower financial strength, and the term of the loan.

Limited Management. Unlike owning rental property, trust deeds do not require property or tenant management. A third party loan servicer collects the monthly payment from the borrower and disburses the funds to you. No need to draft monthly statements, manage payoffs, or issue year-end tax statements.