The Norris Group Trust Deeds Blog

Trust Deed Investment News and Information

Archive for June, 2015

How much money do I need to be a trust deed investor?

Tuesday, June 23rd, 2015

The Norris Group has tens of millions of dollars of trust deed investments working every day, and every dollar of it comes from people, organizations, entities, pensions, trusts, and nonprofits that have funds to invest and that have taken the time to understand the benefits of being a private money lender.  We have many trust deed investors, and they fall into several categories. Below are the most common.

  1. The retired
  2. Almost there (nearing retirement)
  3. I’m too busy (high-earning professionals)
  4. Pensions and retirement accounts
  5. Inherited wealth
  6. Nonprofits and endowments
  7. Wealth managers and estate planners

As of January 2013, The Bureau of Real Estate (BRE) via SB978 requires that no single trust deed be more than 10% of an investor’s net worth. An investor’s net worth does not include primary residence, automobiles, or furniture. We must have the BRE Investor Questionnaire form on file for each transaction. We our are audited quarterly and the auditor makes certain this is part of the file. Potential investors can invest using retirement accounts like self-directed IRAs. solo 401ks and pension funds if allowed by the custodian or administrator.

As an example, if an investor would like a $200,000 trust deed, the form must reflect that the net worth of the trust deed investor is $2 million.The Norris Group has a range of California deed of trusts depending on the program and availability. The long-term trust deeds program ranges from $70,000-$300,000 typically and our short term programs range from $200,000-$1,000,000.

See also see our video below on who invests in trust deeds.



To learn more about trust deed investing, please watch our trust deed investing video or download our free trust deed e-book. You’ll also receive updates with current investing opportunities.

What is a trust deed investor?

Tuesday, June 23rd, 2015

A trust deed investor is a person seeking a competitive rate of return on their investment. The simplest trust deed definition is that an individual lends money to a borrower through the services of a broker. The source of this money can be from savings, credit lines, or retirement accounts. The broker finds the borrower who wants the loan, and the private party with the money provides the funding. The broker then arranges for the borrower to sign paperwork to show the world the agreement to borrow money and the terms. The video below talks a little more about what trust deed investing is.



Important Parts of a Trust Deed

1. Deed of trust

A deed of trust, once signed by the borrower, is recorded at the County Recorder’s office where the collateral is located. The recording of the trust deed “clouds” the title and lets the world know that the debt exists. When a title company researches a property, it is usually looking for trust deeds (or evidence of indebtedness). The recorded trust deed is also the trust deed investor’s security; it allows him/her to be paid when the property is sold.

2. Promissory Note

The Promissory Note (“promise to pay”) is signed by the borrower and kept in a safe place by the trust deed investor until the loan is ready to be repaid. This document is not recorded. The Promissory Note shows the details of the loan including interest rate, payment schedule, and terms.

To learn more about trust deed investing, please watch our trust deed investing video or download our free trust deed e-book. You’ll also receive updates with current investing opportunities.