If you are purchasing an individual Trust Deed, you would need the amount of the Trust Deed investment. This would typically range from $25K to $350K. If you are to invest in a percentage of a trust deed (Fractionalized Share), you would need the amount of your percentage share. In addition, there are some additional requirements as to net worth when investing in a Fractionalized Share. As with all investing, diversification is key. Trust deeds are an alternative investment, and should be a percentage of your overall portfolio.

Yes. DeBellis Financial Services actively places funds from IRAs, Self-directed IRAs, Roth IRAs and several other retirement accounts. Trust deed investing is a fantastic way to diversify your retirement portfolio and to leverage these types of accounts.

We have a special relationship with a custodian for preferred pricing on custodial accounts.

DeBellis Financial Services typically lends on non-owner occupied homes in California. We mainly focus on single family homes and units (1-4 only). We offer everything from fix and flip to long-term holds to new construction. Our programs change occasionally to adjust to the California market. We will do owner occupied homes with a business purpose and that are compliant with all Department of Real Estate requirements or if the borrower meets the Qualified Loan definition.

Annualized yield will depend on the length of individual investment and the availability of a property for rollover. Some investments last for 6 months and some last for several years depending on the individual note and the borrower’s situation.

This is also often referred to as fractionized loans. DeBellis Financial Services can and will pool money, but it depends on the situation (larger loan amount). Our bread and butter is individual trust deeds for the individual investor.

Every investment has risk. However, unlike many other investment vehicles, trust deed investing with first trust deed on a specific California property means you have ultimate control and a physical asset that can be sold or rented out.  With a 2^nd TD if any trust deed holder forecloses on a home and sells the property, the lender of the second trust deed will only receive any money after the lender of the first trust deed is paid off.

To read our risk and disclosure information at DeBellis Financial, click HERE.

DeBellis Financial Services loans up to 65% of the home. When deciding on how much to lend, DeBellis Financial Services considers property location, repairs needed, investor experience, and property type.  

Yes. In certain situations, DeBellis Financial Services offers 2^nd (and 3^rd) trust deeds if the risk return is warranted and the we feel that it continues to offer a secure investment with much manageable risk

Interest rates on second trust deed loans tend to be higher than on first trust deeds. This is because, in the event of foreclosure, the holder of the second trust deed is always second in line for any repayment. If no money is left after paying off the first trust deed, the lender of the second trust deed may not receive any money. This higher risk of loss for the second trust deed lender is reflected in higher interest rates. Interest rates on second trust deeds may also vary with the amount of equity in the property. The more equity, the lower the risk of repayment for the second trust deed lender — and the lower the interest rate.

Depending on the timing of the various required notices, it usually takes a minimum of 120 days to effectuate an uncontested non-judicial foreclosure. This process may be delayed if the borrower contests the action in court, seeks delays and adjournments of sales, or files for bankruptcy. 

Regulations require a professional broker to obtain higher returns and for trust deed investors to be in compliance with usury laws (read more on usury laws at the California Office of the Attorney General)

In addition, using a professional and experienced broker allows you to choose from a variety of investment options and potentially make higher annual returns because you’re adopting an established team that finds, structures, and assists with the servicing of the investment. It expands the marketplace for you, lowers your risk, saves you time, and ultimately increases your return tremendously. At DeBellis Financial we do the leg work for you. We are involved in the process from beginning purchase to the eventual sale/payoff of the Trust Deed. We are your agent and representative and will work with the servicing company and will handle all aspects of the transaction, so all you have to do is cash your monthly check. 

Loan servicing includes the back-office tasks of collecting payments from borrowers, disbursing payments to the investor, mailing required notices and statements, year-end tax documents for the IRS and franchise tax board, maintaining adequate borrower insurance coverage, and coordinating foreclosure proceedings if necessary (rare). We use a third party, outside servicing company (FCI), to handle all communication with the borrower. Money flows from the Borrower, to the Servicer to the Investor (or Custodian for IRA Accounts).