Trust deed investing is not a new concept. In fact, Trust Deeds have been the security for banks ever since people started taking out loans on real estate in California. What's exciting is that private investors are realizing what a gold mine trust deed investing can be. With trust deed investing, the private investor serves as the bank. The private investor funds the real estate loan. The collateral for the loan is the specific piece of real estate for which the loan is funded. In other words, the borrower's property is the security for the loan and the debt is evidenced and secured by a deed of trust. The private investor's name reflects on the deed of trust and is recorded in the particular county to make the debt a matter of public record.

The term trust deed investing, as it is referred to in the real estate and lending industry, has developed through the years to refer to non-conventional or non-traditional real estate loans. Trust deeds are funded by private money sources or administered funds that do not come from a mainstream source. Trust deed investing has one central theme. There must be clean cut, hands down equity in the property or project to give the lender a buffer factor (protective equity) to invest his or her funds. This equity is generally utilized by the borrower from appreciation in their property over several if not many years, or a big cash infusion used to improve the property and it's earning potential at some earlier date. In today's real estate market, trust deed investors are making loans to as much as (70%) seventy percent of the 'as is' value of a subject property.

A private deed of trust refers to money that is borrowed at a high rate of interest, usually because the borrower has credit problems, or a property that is not bankable because of its non-conforming aspects. It is not unusual to make a loan for a borrower that has no credit problems but requires money quicker than a bank or institutional lender can perform. In all cases there must be substantial equity in a piece of real property to make for a solid trust deed investment.

With underwriting guidelines directly focused on the equity in real property and emphasis put on understanding each property and how it fits it surroundings in the current market, AmCap Financial requires less time to close loans with hands on expertise and a full 'in-house' escrow capability. This has been a compelling reason for using a trust deed investment broker. They originate loans with control over all aspects of the real property for the entire duration of the investment. When a property is in foreclosure for non payment, or a construction project has a unforeseen overrun that a banker won't address, or an investment opportunity has arisen from strict institutional underwriting, the trust deed investment broker can act fast and get the funding needed to complete a transaction.

If you have enough equity in your real estate, you are going to get a Trust Deed Investing loan!