What is a trust deed investment?

You fund a loan to a real estate borrower and receive a recorded deed of trust on the property as security. The borrower pays you interest, usually monthly, and repays the principal when the property sells or refinances. If the borrower does not pay, the trust deed gives you the right to foreclose and take the property.

How is the investor protected?

By equity. MyBridge Loans funds at 65% loan-to-value or less on 1st trust deeds and usually 60% combined on 2nds, so the property is worth substantially more than the loan. The investor also holds the recorded lien, is the insured on a lender's title policy, and is the loss payee on the hazard insurance.

The borrower stops paying and the investor has to foreclose, which takes time and money. The property is worth less than the appraisal. A senior lien forecloses ahead of a 2nd. Real estate is illiquid, so the investment cannot be sold on demand. Low loan-to-value reduces these risks but does not remove them.

Who can invest in trust deeds through MyBridge Loans?

Individuals, trusts, self-directed IRAs, and entities with capital to place for 12 to 36 months who understand that the investment is secured by real estate, not guaranteed. Call to discuss minimums and current opportunities.

Trust deed investing: private lending secured by real estate

Q: What return does a trust deed pay?

The interest rate on the loan, less servicing. MyBridge Loans prices 1st trust deeds at 9.5% to 10.99% and up and 2nd trust deeds at 11.99% to 12.99% and up. The investor's yield depends on the loan and the servicing arrangement, and is stated in writing before funding.

A trust deed investment is a loan you make to a real estate borrower, secured by a recorded deed of trust on the property. You earn the interest the borrower pays. MyBridge Loans originates, underwrites, and services these loans for private investors, funding at 65% loan-to-value or less so the property is worth substantially more than the loan behind it.

How it works

A borrower needs a bridge loan. They own or are buying real estate with equity and need money faster than a bank will move, or for a reason a bank will not fund. MyBridge Loans underwrites the property, the equity, and the exit.
An investor funds it. The investor wires funds to escrow. A promissory note and deed of trust are recorded in the investor's name. The investor is the insured on the lender's title policy and the loss payee on the hazard insurance.
The borrower pays interest. Interest-only payments, usually monthly, at the note rate.
The loan pays off. The borrower sells or refinances, typically within 12 to 36 months, and the principal returns to the investor. The reconveyance records and the lien is released.

What protects the investor

Equity. 65% loan-to-value or less on a 1st trust deed, usually 60% combined on a 2nd. On a $1,000,000 property the 1st is $650,000 or less, leaving $350,000 of borrower equity ahead of any loss to the investor.
The recorded lien. The deed of trust is a public record. If the borrower defaults, the investor has the right to foreclose and take the property.
Title and hazard insurance. A lender's title policy insures the investor's lien position, and the investor is the loss payee on the property's hazard insurance.
Underwriting on the asset, not the story. Value is confirmed by a third-party appraisal. The exit is identified before funding.
Servicing. Payments are collected and tracked, and the investor is kept current on the loan's status.

What the investor earns

The interest rate on the note, less servicing. MyBridge Loans prices 1st trust deeds at 9.5% to 10.99% and up and 2nd trust deeds at 11.99% to 12.99% and up. The investor's yield on any specific loan is stated in writing before funding and depends on the loan, the lien position, and the servicing arrangement. Points at origination are separate from the note rate.

The risks

A trust deed is secured, not guaranteed. The borrower can stop paying, and the investor then has to foreclose, which takes months and costs money. The property can be worth less than appraised. On a 2nd trust deed, a senior lien that forecloses can wipe out the junior position if there is not enough equity. The investment is illiquid: it pays off when the borrower pays off, not when the investor wants out. Low loan-to-value is the main defense against all of these, and it is why MyBridge Loans caps leverage where it does.

Who invests

Individuals with capital they want working at a secured yield instead of sitting in cash.
Self-directed IRAs and solo 401(k)s, which can hold trust deeds.
Family trusts and entities placing capital for 12 to 36 months.
Real estate investors who would rather be the bank on a deal than the buyer.

How to start

Call 949-463-9898 or email through the form and say you are interested in funding trust deeds. You will get a conversation about minimums, the kinds of loans currently in the pipeline, how servicing works, and what documents are involved. Nothing is committed until you have reviewed a specific loan and signed.

Trust deed investments are secured by real estate and are not insured, guaranteed, or liquid. Past loan performance does not predict future results. This page is general information, not an offer to sell securities or investment advice. Every loan is described in its own written documents, which govern.