VestCap, a California Corporation Licensed by The Department of Real Estate, is a company developed by a group of real estate professionals with over 50 years of combined experience in real estate investments and wholesale mortgage. We have identified a demand for lending to local real estate investors.
VestCap helps them by funding their projects while obtaining solid investments, boasting 12% returns for our partners. We feel with the current market conditions (tightened lending standards) this is where we can make a difference. We will be putting people back in affordable homes along with stabilizing local housing markets, by enabling investors to rehabilitate properties with our loan programs.
Private Trust Deed Investors Earn Substantial Fixed Returns
Secured By Local California Real Estate.
Private Trust Deed Investments offer a real, secure, direly needed avenue to clients looking for non-traditional real estate funding, as well as for investors who want high yield income investments without the risk of the stock market. Whether you are exploring options for retirement income, portfolio diversification, an alternative to real estate investing without having to be a landlord, or if you just have a pool of funds that you know needs to be working on your behalf, investing in trust deeds is a great way to earn high-yields on your money. New to trust deed investing, or an old pro, VestCap will work with you through the entire loan process and until payoff of your loan. We are your partners from beginning to end. We do not disappear once the papers are signed. And we do it all at NO COST to you. Our team of professionals want you to get the most out of your investment. We can even help you to do self-directed IRA investments. Our trust deeds typically yield a 12% annual return.
VestCap advantages:
- Security; you have complete control of your assets through a self directed LLC.
- Passive High Yield Investment secured by local real estate.
- No Load.
- Short Term options from 6-24 months.
- Simple interest monthly cash flow.
- Real Estate investing without the management issues.
Protecting Our Investor Partners
VestCap works diligently to protect you in your investments. Because investments made through a mortgage brokerage are not guaranteed to perform nor are they insured by any outside agency such as the FDIC, we understand how important it is to help you thoroughly evaluate your risk in each investment opportunity.
As part of our policy and investor protection protocol, we set up each of our investor partners with a VestCap LLC, allowing you to directly fund private trust deed loans. Your funds stay in your control until funding escrow. We also set up a third-party escrow-based account for the collection of monthly payments related to your investment. This creates one more level of security for your investment. Likewise, just as if it were our own money, we stay very close to your investment, making sure that everything is moving accurately and profitably for you.
What is a Trust Deed?
A Trust Deed is a document recorded with a county recorder’s office creating a secured lien on real property, which provides collateral for lenders and trust deed holders.
A trust deed, or deed of trust, is a security instrument for real estate loans. The details of the loan are spelled out in a separate promissory note, and the trust deed is recorded at the County Recorder’s Office. The trust deed serves legal notice to the world that the subject property is pledged to secure a loan. It also provides for a rapid method of foreclosure should a borrower default on a loan. A trust deed is a signed and notarized legal document, a piece of paper that secures the note and loan you make to a particular piece of property.
The deed of trust shows the borrowers name(s), the lenders name(s), the loan amount, and the property that the loan is against. The trust deed contains a “power of sale clause”. This clause gives the title company (the trustee) the power to sell the property for you, the lender, in the event that the borrower doesn’t repay the loan as agreed. The trust deed is recorded and made a matter of record in the County (public records) where the property is located. The trust deed is signed by the borrower(s) and notarized, and specifies the parties, the amount, and a legal description of the particular parts of real estate securing the loan.
A Deed of Trust contains three parties:
- The Trustor, which is the borrower.
- The Trustee, which is an entity that holds "bare or legal" title.
- The Beneficiary, which is the lender.
The Deed of Trust is an instrument that identifies the following:
- Legal description of the property being used as security for the loan.
- The parties.
- Inception and maturity date of the loan.
- Provisions of the mortgage and requirements.
- Late fees.
- Legal procedures.
- Acceleration and Alienation clauses.
- Assignment of Rents.
What is a Promissory Note?
Whereas the deed of trust is security of the debt, secured by the property, the promissory note is secured by the deed of trust and is the evidence of the debt.
- The promissory note is a promise to pay, signed by the borrower in favor of the lender.
- It contains the terms of the loan such as the interest rate and payment obligations.
- The promissory note is generally not recorded.
- When the loan is paid, the promissory note is marked "paid in full" and returned to the borrower, along with a recorded Reconveyance Deed.
- During the term of the loan, the lender retains the promissory note.
What is a Trustee?
Because mortgages do not contain a trustee, many borrowers are confused between a mortgage and a deed of trust. Deeds of trust contain a trustee, an independent third party that does not represent the borrower or the lender.
- The trustee is an entity, generally a title company, which holds the "Power of Sale" in the event of default.
- The trustee also reconveys the property once the deed of trust is paid in full. In the event of a default, the trustee files a Notice of Default; however, in most instances, the trustee will substitute another trustee to handle the foreclosure under a Substitution of Trustee.
- After the 90-day period in the public records, and a 21-day publication period in the newspaper, the trustee then has the power to sell the property on the courthouse steps without a court procedure.
- During the three months following recordation of the Notice of Default, the borrower can redeem the property by making up the back payments and paying the trustee's fees.
- Once the trustee sells the property at a Trustee's sale, it is final.
What is LTV?
The total loan against the property, divided by the market value of the property determines the loan-to value “LTV” ratio. For example, if a $250,000 loan was made against a property worth $500,000 the LTV would be 50%.
Typical Loan-to-Value Ratios for Real Assets Acting as Investment Security:
(Loan to value or LTV is the maximum percentage of value we will expose our investors.)
- Residential Investment 65%
- Commercial: 65%
- Income-Producing Commercial: 65%
- Raw Land: 50%
After Funding What Documents Do I Receive?
- Borrower’s application.
- Preliminary title policy.
- Closing protection letter from title company.
- A.L.T.A. lenders title insurance policy.
- Fire insurance policy.
- The promissory note.
- The Deed of Trust and assignment.
- Lender Purchaser Disclosure Statement “LPDS”.
- Mortgage Loan Disclosure Statement “MLDS”.
- Servicing Agreement.
How is my investment and return paid back to me?
Your monthly interest payments will be sent directly to a third party escrow account that will then deposit into your LLC account.Upon pay-off or refinancing of the property you will be paid the remaining principal balance through escrow.
What are the costs to me?
All fees are paid by the borrower for the life of the loan.
How do we get started?
Simply, contact me today.
Scott Stockdale
Director, Mortgage Portfolio Investments
949.759.7000
sstockdale@vestcap.net