Trust Deed Investments
A Trust Deed or Deed of Trust is the legal document that secures a loan with real property. California’s trust deeds involve three parties: the trustor or borrower, the trustee (a third party holding an equitable title interest) and the beneficiary or lender. The Trust Deed is recorded at the County Recorder’s Office and held in trust until the loan is paid in full. The Deed of Trust protects the borrower by ensuring the trustee will not get involved in the agreement unless there is a loan default, at which time the trustee can intervene and sell the property on behalf of the lender. Details of the loan, itself, such as the borrower’s obligations are listed in a promissory note. Furthermore, Trust Deeds expedite the process of foreclosure in the event that a borrower defaults on a loan.
Investing using Trust Deeds:
Our loans are secured by first trust deeds with a maximum loan to value of 65% of after repair value. In doing so, we provide a safety net to investors so that in the event of a default investors have a 35% (minimum) protective equity. The risk of losing money is mitigated by the “margin of safety” offered through this type of financing. It is common for a Trust Deed to produce returns above 10%. Trust Deed Investing is by far one of the most secure ways to invest in real estate without the hustle of owning or managing any property. The Southern California market is the primary emphasis of our lending operation with the majority being non-owner occupied residential investment loans for short-term property rehabilitation or for landlords looking for a bridge between purchase and refinancing.
Centauri Fund LLC is an investment fund created to produce attractive risk adjusted returns from investments in Real Estate. As an affiliate operation, Centauri Fund invests in the deed of trusts offered by Spinnaker. Centauri Fund targets markets nationwide, with an initial focus in Southern California. Centauri Fund LLC is a private placement created under regulation D section 506(c).
If you would like more information on Centauri Fund please contact us or follow the link to www.centaurifund.com.