FCTD Blog

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

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Trust Deed Investing

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

Using Background Checks To Underwrite Private Money Loans

At First Capital Trust Deeds, we run background checks to underwrite private money and hard money loans, especially when working with a new borrower for the first time. Background checks have helped us discover some red flags or helped fill in the information gaps when something in the conversation with a potential borrower didn’t seem right and we couldn’t figure it out but knew something was off.

Picture of Ted Spradlin Ted Spradlin Jul 5, 2022 10:52:41 AM

What Is the Ability to Repay Rule?

In the early and mid-2000s, mortgage lenders were handing out loans without the notion that they would ever be successfully paid in full. This, along with other factors, created the mortgage crisis that followed. In response to the crisis, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. This act allowed the Consumer Financial Protection Bureau (CFPB) to implement new rules to protect consumers who are borrowing money to purchase a home. One of those rules was the Ability to Repay requirement for closed-end residential mortgage loans.

Picture of Ted Spradlin Ted Spradlin Feb 8, 2019 12:00:56 AM

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