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What is a Trust Deed? A Trust Deed is an instrument used to secure a loan on real property. You are in a sense acting as the bank. You lend money to a person who uses their real estate to secure the loan. The California Department of Real Estate has published a fine booklet describing Trust Deeds. You may also want to review this article about trust deeds written by a member of Red Tower Funding and published in the San Francisco Examiner.
What is the minimum Investment? Our minimum investment depends on the transaction, but is usually $25,000 to $50,000.
How does investing in a trust deed compare to other types of investments? Trust deed investing provides a good combination of safety and return. The below chart contrasts these and other measures for various types of investments:
| Savings Account |
Stocks |
Rental Property | Deeds of Trust | |
| Return | 1-4% | Uncertain | Uncertain | 9-13% |
| Risk Factor | Low | High | Moderate | Moderate |
| Security | up to $100K by the FDIC |
Low | Real Estate | Real Estate |
| Costs | None/Low | Commissions | Maintenance, Management, Taxes, Insurance, etc |
None |
| Monthly Income | Yes | None/Low | Possible | Yes |
| Personal Attention | None | High | Low-High | Low |
How do I collect my payments? If you are the sole investor in the Deed of Trust, you can choose to service the trust deeds you own (collecting payments, etc.) or have it professionally serviced. If you are partial owner of the Deed of Trust, your investment will be serviced professionally. Servicing means collecting the monthly payments, preparing tax filings, and resolving legal or collection issues that may arise.
How do I receive my payments? You receive an interest payment each month.
What if I want to liquidate my investment before maturity? The Notes securing the Deed of Trusts can sold or traded at any time. There are costs associated with selling the Notes, so you should invest in in the Deeds of Trust with the intent of holding them to maturity.
What can I really earn? The net return to you ranges from 9% to 13%. The returns are based on risk. We can discuss your particular needs and select opportunities that match your desired return with the appropriate risk.
Can I use my IRA funds to invest? Yes. You can use your self directed retirement funds. We can assist you.
How do I learn more? Sign up for one of our free Trust Deed seminars.
How do I get started? Call Solomon Gorlick directly at to discuss your investment goals and see if Trust Deed Investments are right for you. You may also want to view the Trust Deeds that are available for immediate investment.
To receive notification about future Trust Deed Investments, join our Newsletter and be sure to select the "Investments" list:
