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Investing FAQs

What is a trust deed investor?

A trust deed investor is an individual who is seeking a higher rate of return by loaning private funds on a secured investment – real estate. A trust deed investors acts as the bank and receives a higher ROI on his investment compared to investing in a Bank CD, Bond, Savings Account, Traditional IRA or Mutual Fund.

How much do I need to become a Trust Deed Investor?

In order to invest in a secured Trust Deed you normally need $50,000.00 or more in liquid funds.

Who can invest in trust deeds?

Anyone can invest in trust deeds such as private individuals, corporations, LLCs, retirement funds, IRAs, pension plans, 401Ks, Charitable Remainder Trusts (CRTs), Foundations, family trusts and family members.

How safe is it?

All investments carry some amount of risk, however McCormick National Holdings, LLC secures your investment by real property which allows you more control and a physical asset that can be sold or rented out. Furthermore you receive Title Insurance, Promissory Note, Notarized and Recorded Trust Deed, you are named on the Fire Insurance Policy and our Trust Deeds have 30% to 60% in equity which serves as a safety net.

What’s the typical property you loan on?

Our family has been in the real estate business for over 38 years, hence most of the Trust Deeds are secured by our own real estate holdings in California. We mainly focus on single family homes and apartment buildings. In most cases we have already rehabbed and leased out the properties.

What is the Yield?

The yield that our investors earn is 6% to 15%. The rate is determined based on the Loan to Value, length of the investment and is determined on a case by case basis. Yet this is disclosed up front and in writing before you invest.

What is the Loan to Value?

The Loan to Value (LTV) is 40% to 70%. Hence each investment has 30% to 60% in equity. Each trust deed is case specific and rates vary based on the property location, repairs needed, type of property and built in equity.

Most of our loans range from

McCormick National Holdings, LLC has investment opportunities ranging from $50,000.00 to $3,000,000.00

Do you offer 2nd trust deeds?

On rare occasions we do offer 2nd position Trust Deeds.

Why can’t I work with a borrower directly and lend them my money?

YES you can, but you open yourself up to legal liability and high risks. The laws are very stringent and it is advisable to work with a professional Investment company who has experience and knowledge. Working with a professional company also gives the investor (You) the advantage to receive higher returns and peace of mind knowing that we do our own in house Property Management and Project Management. Our assets are well monitored and taken care of.

What will I be provided with regarding the property?

You will receive a professional written Broker Price Opinion with photos and comparable properties so you can see the actual value of the property. You will also be given the address to the property so you can drive by the actual asset. Furthermore, you will receive a copy of the lease (if applicable) to see the rental income. You will also receive a copy of the Title Insurance Policy and Fire Insurance Policy.