FCTD Blog

Current updates on the real estate market, private money, hard money, and trust deed investing.

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Trust Deed Investing

The Different Types of Hard Money Lenders

When most people think of hard money lenders, including real estate agents, conventional mortgage brokers, escrow and title officers, they mostly think of an individual investor who funds a few loans per year or a local hard money lending company that funds fix and flip transactions. The reality is that the industry has expanded significantly beyond local lenders to nationwide hard money lenders originating loans and selling to pension funds and Wall Street investors, which has led to greater loan product offerings for the end user, the real estate investor.

Picture of Ted Spradlin Ted Spradlin Sep 30, 2022 8:45:34 AM

Guide to Trust Deed Investing

If you are a seasoned investor, you have probably heard about hard money loans and trust deed investing. Maybe you have friends who have diversified their investment portfolio by loaning money out to real estate investors on a project. Or, maybe you personally have borrowed from a hard money lender on one of your real estate projects and “being the bank” caught your attention, so here you are wanting to learn more about how you can do the same thing with your capital.

Picture of Ted Spradlin Ted Spradlin Sep 27, 2022 11:04:09 AM

Why Do People Use Hard Money Loans? 20 Examples

A little while back, I had a conversation with a friend rolling $250,000 from their 401K into an IRA after leaving the company they’d worked at for eleven years. The friend was asking me about setting up a Self-Directed IRA for trust deed investing, lending the money out at 9.00-10.00% compared to simply rolling their retirement money into a Roth IRA with Vanguard.

Picture of Ted Spradlin Ted Spradlin Sep 18, 2022 12:42:28 PM

Best Of Trust Deed Investments

If you’re an investor and want to get a good idea of the types of loans that FCTD originates with private beneficiaries like yourself, this Best of Trust Deed Investments blog will give you a good idea of our terms so you can see if we'd be a good fit or not be a good fit for you. 

Picture of Ted Spradlin Ted Spradlin Aug 20, 2022 6:56:54 PM

Pros & Cons of Trust Deed Investing

There are many pros and cons of trust deed investing. It could be the right move for you, especially if you want to seek out alternative investment opportunities in addition to stocks, bonds, and real estate. It could also be the wrong investment for you if the disadvantages outweigh the advantages for you and your investment goals.

Picture of Ted Spradlin Ted Spradlin Aug 19, 2022 11:31:34 AM

Trust Deed Investment - Multi-Lender Loans

First Capital Trust Deeds originates loans with trust deed investors a few different ways. Most private money loans are funded by a single trust deed investor for entire loan amount. However, another way to fund trust deed investments is with multi-lender loans, or fractional loans, where two or more investors, or private beneficiaries, fund the loan.

Picture of Ted Spradlin Ted Spradlin Aug 18, 2022 1:58:33 PM

What are the Yields on Trust Deed Investments? 2022

If you’re researching trust deed investments or looking for new mortgage brokers to fund or buy existing Notes from, you’ll want to know if the rate of return matches your investment goals. The last thing you want is to be a low-leverage, lower return investor repeatedly being offered high-leverage, higher yielding paper that could lead to problems and headaches down the road.

Picture of Ted Spradlin Ted Spradlin Aug 16, 2022 2:29:20 PM

Ten Problems with Trust Deed Investments

If you’re in the research phase of trust deed investing, you are probably looking online, talking to mortgage brokers and to friends who have experience funding private money loans. There is a lot of information available about the Note, Deed of Trust, and Security Instrument. However, there’s not much information about the real-life problems that arise with trust deed investments.

Picture of Ted Spradlin Ted Spradlin Aug 10, 2022 2:38:30 PM

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