TrustDeed Capital

About TrustDeed Capital

TrustDeed Capital is a Newport Beach, CA based private lender who offers funding throughout California and Tennessee. They provide commercial hard money loans, fix and flip hard money loans, and buy and hold loans. Their loan guidelines are versatile, including loans with a maximum LTV of 80%, terms between 6 months and 60 months, and rates starting at 7.5% . They will lend funds to all borrowers based on the value of the property and not on a minimum FICO rating. They will make loans on all the following types of properties: single family units, multi family, mixed use spaces, retail units, office units, and industrial facilities.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans

Property Types Covered: Single Family, Multi Family, Mixed Use, Retail, Office, Industrial

Areas Served: CA, TN

Licenses: Broker #1805798, NMLS #296507

Lending Guidelines for TrustDeed Capital

Below are the general loan guidelines published on the TrustDeed Capital website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by TrustDeed Capital.

Loan Example 1

Suzanne takes a private money loan from TrustDeed Capital in order to remodel a house to resale in Los Angeles, CA. The price of the house is $200,000. The loan-to-value (LTV) on the loan is 70%. This means that Suzanne will have to bring 30% of the purchase price to closing and the principle amount will be $140,000 on the deal. The interest rate on the loan is 10% for a length of 12 months and the lender requires a four point origination fee at closing. The interest payments are to be paid on a monthly basis and the principle will be returned after the property sells.

On top of the $5,600 origination fee, Suzanne will also fund $60,000 of the purchase with her own funds, or 30% of the purchase price. After the loan is closed and Suzanne takes on the project, she will begin making monthly payments of $1,167 to the lender ($140,000 principle x 10% / 12 months). At the expiration of the note, she sells the renovated house for $270,000. After subtracting the $14,000 in interest expenses ($1,167 multiplied by 12 months), the $5,600 origination fee, the $140,000 principle amount on the note, and the $60,000 she contributed to closing, she will earn a gross profit of $50,400 ($270,000 price minus $219,600 in total costs). This profit would then be reduced by any renovation costs paid by the borrow.

Loan Example 2

Rodney is a an investor in Los Angeles, CA. He locates a run-down property for a rehab project and takes a fix and flip loan from TrustDeed Capital with the following paramters:

$240,000 sales price
80% loan to value (LTV)
6 month term
12% rate of interest
3% origination fee

Rodney plans to sell the house when the note expires for $360,000. If he accomplishes his goal, the deal numbers will be the following:

$360,000 sales price
- $192,000 principle on note (80% LTV)
- $48,000 down payment (20% on 80% LTV)
- $5,760 origination fee (3% of the $192,000 principle)
- $11,520 interest payments (6 months x 12% interest)
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= $102,720 total profit (doesn't include taxes or rehab costs)

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