EXPERIENCE THE BENEFITS OF INVESTING IN TRUST DEEDS
GW Private Capital has been arranging Trust Deed Investments for nearly three decades.
Jay Green, Founder and President of GW Private Capital has been arranging Trust Deed Investments for nearly three decades. Jay is a firm believer in the benefits of Trust Deed Investments and allocates a majority of his personal cash and retirement funds in Trust Deeds. Jay has earned consistent double-digit returns and has included Trust Deeds are an integral part of Jay's retirement strategy.
GW Private Capital is an active California private hard money lender. We receive numerous loan requests every month and approve a select number of loans, which create short and long-term Trust Deed Investments.
We have arranged thousands of residential and commercial private money loans. Hundreds of private investors have realized exceptional annual returns while investing with us.
Upon request, we will provide investor references for you to contact.
What is a Trust Deed Investment?
Banks and mortgage lenders arrange mortgages to create investments that provide a return on investment to their investors and shareholders. A Trust Deed Investment is similar to when a bank or a mortgage company creates a mortgage for the benefit of receiving the future interest income stream. A Trust Deed Investment is a privately-funded mortgage that was created for the benefit of receiving the future interest income stream.
A Trust Deed Investment is a paper debt instrument, comprised of a promissory note including a written promise to repay, that is a part of and secured by a trust deed that is recorded against real estate. Trust Deed Investments are not a main-stream traditional investment offered by banks, wealth manager, investment advisors or traditional financial institutions. They are not and FDIC insured investment product.
Trust Deed Investments pay higher annual yields for several reasons.
Private money loans historically have higher interest rates than conventional bank loans or mortgages. Private money loans offer mortgage solutions for borrowers who may not meet the stringent requirements of traditional lenders and many times do not not want to be burdened by jumping through the mind-numbing requirements of a traditional loan.
There is a myriad of reasons why thousands of individuals and entities apply for private money mortgages every year. The two primary reasons are speed of access to capital and convenience. Many borrowers need capital quickly! Perhaps they are buying an investment property and they have a short escrow closings. Another reason people obtain for private money, they may be self-employed and may not have tax returns that qualify for a traditional loan.
Borrower credit is another reason people need private money. Not all borrowers who take private money loans have poor or less than perfect credit ratings, but some may have low scores that limit their loan options.
Trust Deed Investments provide several benefits.
Trust Deed Investments provide several benefits. They are secured by California real estate, therefore the investment is protected by a tangible and physical asset. Every property should be inspected and approved by every Trust Deed Investor. We recommend that every investor drive by and make sure they are comfortable with the property they are investing upon.
Trust Deeds provide exceptional annual returns. The potential returns range from from 6% to as high as 35%, with the average return hovering around 10%. The rate of return fluctuates according to several factors, the borrowers credit, the location of the property, the loan size, is the loan in 1st or 2nd lien position. The purpose of the funds and repayment plan also influence the rate and return. Is the loan used to pay off an existing mortgage or complete a construction project or buy an investment property.
For example, we recently arranged a $100,000 second Trust Deed for a Dentist and her commercial property located in Downey, California. Her credit was excellent and her income good. She owed an existing first mortgage of $230,000 and the fair market of her property was $750,000. The Combined Loan-to-Value Ratio was 44%. This is a very low CLTV and the property had generous protective equity. This was a sound investment and we offered the borrower a 10.25% rate. The Investor received a $865.17 monthly interest payment on her investment.
Trust Deeds can create greater cash-flow, that can be received in the form of scheduled monthly payments. Most Trust Deeds offer a monthly interest payment that is due on the 1st of each month. For example, a $100,000 Trust Deed with an annual rate of 8.5% would have offer a $708.33 monthly interest payment.
Trust Deed Investments are not complex investments and are easy to understand. The most important factors to understand with every Trust Deed is the estimated value of the property securing the investment, the borrowers likelihood for repaying the loan, his or her credit and the amount of protective equity in the property. For example, if you invested in a $200,000 1st position mortgage secure by a property with a fair market value of $400,000, your Trust Deed Investment would provide $200,000 of protective equity and be at 50% Loan-to-Value. Understanding the loan to value ratio is something you need to familiarize yourself with if you decide to invest in Trust Deeds. The lower the Loan-to-Value Ratio the better.
Trust Deed Investments can build wealth and are a good way to preserve principal.
Trust Deeds also provide predictable returns and are less volatile than the stock market.
Investors may invest using a tax-qualified account such as an Self-Directed IRA, KEOUGH or Defined Benefit Pension Plan.
Invest with confidence.
Jay Green, Founder and President of GW Private Capital has been arranging and servicing private hard money loans for nearly three decades. Jay has experienced the highs of exuberant up-markets and the crippling lows of a devastating down -market like our recent mortgage market implosion and economic recession. From these experiences, Jay has developed a sense for assessing risk and locating lending opportunities that transfer to quality Trust Deed Investments. Jay is keen to preparing for potential market or economic changes that can have negative effects on the real estate and Trust Deed Investments.
We are dedicated to offering safe and secured Trust Deed Investments. We believe it is essential that every Trust Deed Investor be well-informed about the details of every Trust Deed Investment they consider. Every Trust Deed Investor receives a formal Trust Deed Investment package and we advise every investor on the positive or negative factors of every investment. Our investment package is thorough and includes a loan application, credit report and proof of ability to repay the loan. The investment package also includes a signed promissory note and trust deed that is insured by a title insurance policy. Our investors are further insured by a fire and hazard insurance policy which names the investor as an additional Loss Payee. Photos and property valuation are also provided.
What is the minimum investment?
Qualified Investors may invest with a minimum of $30,000.
What are the potential annual returns from Trust Deeds?
The annual returns that can expected range from 6% to 35%, with the average return hovering at around 10%. These rates are not set in stone and vary depending on several factors. The location and value of the property are factors that determine that rate offered. A property that is located in Newport Beach, California and where the borrower has a excellent credit score and where there is a significant amount of equty, the rate might be lower and around 8%.
Now consider a property that is located in a rural area, where the demand for properties and the market has much different dynamics, the the rate on the loan and return to the investor may be higher. Trust Deed Investments typically offer higher returns. For example, a $35,000 2nd Trust Deed may be made to a property owner that has an existing 1st mortgage of $500,000 and he plans to sell. The value may be $850,000. This Trust Deed Investment is a little more risky and the rate and return to the investor may be closer to 15%. Risk factors, such as location, lien position, borrower credit, the plan for loan repayment and many factors are considered that determine the rate and return offered.
An investor who invests $30,000 into a 1st position mortgage that offers a 10% annual return could receive $250.00 in monthly interest.
First position trust deeds average 6% to 12% annual returns. 2nd position trust deeds pay higher returns and range between 10% and 15%, sometimes higher.
Request a Trust Deed Investor Package
The GW Private Capital trust deed investment process.
Every month we receive numerous private money loan requests from property owners, Realtors and loan brokers. New loan requests are opportunities to create new Trust Deed Investments.
Our investment process starts by conducting a preliminary underwriting of the borrower loan application. We complete a cursory vetting of a the borrower's credit, consider the purpose of their loan request, establish an estimated value of the subject real estate and assess if the loan for consideration has merit.
We have established decades-long relationships our investors. When a trust deed investment is ready to be presented to an investor, an investment summary is emailed to a single investor for his or her consideration.
After an investor has expressed interest in the investment, we will provide the investor with any subsequent information that may be needed, which could include, a title report, borrower credit report, appraisal or other pertinent documentation. At this point, the terms of the potential investment are discusses and a loan proposal may be created so it can be presented to the borrower or their representative. The loan proposal is made a part of a Letter of Intent and is presented to the borrower.
If the borrower accepts the proposed terms, we ask that they sign the Letter of Intent, acknowledging their decision to proceed with the loan process. The loan process involves building a complete loan file, including and not limited to a fully-executed Borrower Loan Application, bank statements, financials, appraisal or broker price opinion, preliminary title report, escrow instructions and all other pertinent documents that complete the loan file.
After the borrower loan file has been built (stacked), we will prepare final borrower loan documents, which include the investor (lender) vesting and these loan documents are sent to the investor for their review and approval. After the final borrower loan documents have been approved by the lender, they are sent to the settlement agent, typically an escrow company, so a time may be scheduled for the borrower to sign the documents before a notary public.
GW Private Capital will prepare the appropriate investor/lender disclosures, such as the BRE form 881, and they will be emailed for review and execution.
After the final borrower loan documents have been singed and notarized and all lender instructions have been given to the settlement agent, the lender / investor will obtain wire instructions from the settlement agent. Investor funds will then be sent (wired) to the title insurance company.
Once the loan has "funded" and the deed or trust and all pertinent documents have been recorded "recorded", the loan file will be set up for loan servicing.
What are the suitability requirements to become a Trust Deed Investor?
Investors or Entities must meet the following minimum criteria:
California Resident(s). Each Investor must be a "Qualified Real Estate Investor(s)." A qualified real estate investor includes any one of the following:
Any natural person whose individual net worth, or joint net worth with his/her spouse, at the time of investment exceeds $250,000 (excluding home, home furnishings, and automobiles) and any individual income in excess of $100,000 in each of the two most recent years and has a reasonable expectation of reaching the same income level in the current year; or
Any natural person whose individual net worth, or joint net worth with that persons spouse, at the time of investment exceeds $500,000 (exclusive of home, home furnishings, and automobiles); or
Trusts (not including family trusts), corporations, partnerships and other entities with total assets of $5,000,000 or more not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Regulation D, Rule 506(b)(2)(ii); or
An entity is which all of the equity owners are qualified Real Estate Investors. Due to the enhanced risk of the types of loans offered (including, but not limited to, construction and land acquisition and development), Cal Comm requires that the amount of each Investor's investment in any offering by Cal Comm not exceed ten percent (10%) of such Investor's net worth (exclusive of home, home furnishings, and automobiles).
How to become a GW Private Capital Investor.
If you are interested learning more about becoming a GW Private Capital Investor or want to learn more about our company and process, please contact Jay Green, President at (714) 747-1912 or email him at [email protected]. You may also schedule a time to meet Jay one-on-one.
To become a GW Private Capital Investor, please request a Trust Deed Investor package. Once your Application and required forms are received, Mr. Green will contact you to discuss your application, investment experience and objectives.
Thank you for considering becoming a GW Private Investor!
Recently Completed Trust Deed Investments
Our attitude has always been "respect investors money, like it was our own!"
We consult and advise every investor so they invest in the most suitable Trust Deeds that are appropriate for their risk tolerance and individual circumstances.
Our Trust Deed Investments offer 6% to 35% annual returns. The return range for several reasons, the lien position of the mortgage, the location of the subject real estate, the repayment time line, borrower credit, purpose of funds and a myriad of other factors.
Most of our Trust Deed Investments are short-term, 6 to 12 months, however longer investments are available. We do not pool investor funds. Investors will own a specific Trust Deed secured (recorded) by a secific property.
Investor Testimonials
"I've done business with Jay Green for over a decade. He has a wealth of real estate investment knowledge and has helped me safely invest in trust deeds with excellent returns. Jay and his team are my go-to source for trust deed investments."
-Scott, M., Investor