Trust Deed Investments
Investing in Trust Deeds
While we offer a variety of financing programs for Borrowers, CSI Mortgage also assists Lenders with their real estate investing needs. Our team helps investors find trust deeds that meet their specific lending guidelines on many different types of properties in Arizona. Lenders do not need to reside in Arizona.
Benefits to Trust Deed Investing
Aside from diversifying your investment portfolio, trust deeds can bring higher returns than traditional stocks, mutual funds, or certificates of deposit. Your investment is also well secured by real estate. Typically, investors will lend up to a maximum of 70% loan to value which provides 30% equity in the property, and are in First Lien Position. The property valuations are determined by comparable property sales or appraisals.
The transaction is managed by an independent title company that records the trust deed and issues an ALTA insured title policy. An independent servicing company will then maintain monthly servicing of the Trust Deed and the lender receives 100% of the payments. Properties are also protected by hazard insurance.
Our lenders are the sole beneficiary of the Deed of Trust. Lenders can go and physically see the property they are lending on. A complete loan package is provided to the lender which includes a summary of the Deed of Trust, a copy of all executed loan documents including the Promissory Note and recorded Deed of Trust, as well as supporting details on the subject property and the borrower. All transaction fees are paid by the borrower.