California trust deed investing FAQs
Q: Is it safe to invest funds in California trust deeds and fiduciary mortgage properties?
A: Yes. While every investment contains some risk, First Probate Loans is a highly experienced trust deed investment company. We provide high-yield, income-producing, stable investing opportunities secured by real estate in California. These investments are reliable because the trust deed investment is secured by the property, whether the borrower pays on time or not. The investment is secured based on the equity in the asset and the low loan-to-value ratio.
Q: What are the advantages and disadvantages of investing in California probate real estate?
A: There are many advantages to probate real estate loan investing: low loan-to-value; representation of all borrowers by counsel; ordering of some loans by the Superior Court; and a huge pool of inventory. Disadvantages include probate court time constraints. Fortunately, the principals of First Probate Loans can help investors work through the time constraints and begin taking advantage of the opportunities – with minimal headache.
Q: How are trust deed investments structured?
A: Trust deed investments usually are structured as either first trust deeds or second trust deeds. First trust deeds are recorded in first position, subject only to county property taxes in order of priority. Second trust deeds are subject to property taxes, and also are subordinate to the first trust deed in order of priority. Investment terms can range from less than one year to 10 years or longer. Investors can choose whether to be the sole investor in a fiduciary mortgage or to be part of a group.
Q: How do California trust deed investors receive payment on their real estate loans?
A: Investors receive monthly payments. These payments can be structured in a few ways. One is partially amortized monthly payments containing interest and some principal; another is with a balloon payment balance delivered at the end of the loan term.
Q: Are there fees to invest in these real estate loans?
A: The fees to invest in the real estate loans that we manage are paid by the borrower or by our California trust deed investment company.
Q: How are California inheritance loan borrowers qualified?
A: Borrowers are qualified on loan purpose and stated prepayment, based primarily on property equity. Thanks to experience vetting borrowers and properties for trust deed investments in California, First Probate Loans can offer qualified investors a stable, fair and competitive rate of return.