BUYERS

We specialize on financing buyers who either do not qualify with traditional lenders or do not have the time jump through the hoops necessary to get financing from traditional lenders. More »

Equity

Our loans are based on 2 important factors, EQUITY IN THE PROPERTY and ABILITY TO RE-PAY. Credit Score is NOT a factor. More »

Loan Servicing

Unlike other mortgage brokers, First Security Mortgage services the loans we originate. All monthly payments are processed at our office here in San Diego. From issuing out coupons, providing year end tax reporting, generating late notices, maintaining fire insurance and property taxes status, both borrower and lender can rely on First Security Mortgage to provide unmatched service. More »

Trust Deeds

Investing in Real Estate loans (TRUST DEEDS) can be an excellent way to earn returns from 8% to 9% interest. All our loans are secured by California Real Estate and therefore all investment opportunities are limited to California residents ONLY. Our loan amounts range from $25,000 to $325,000 secured by 1st mortgages ONLY. Our office manages all aspects of the servicing, collections and year-end reporting. More »

Realtors

First Security Mortgage Home Loans Inc. has been arranging loans in San Diego since 1972! We specialize on financing buyers who either do not qualify with traditional lenders or do not have the time jump through the hoops necessary to get financing from traditional lenders. The 2 major requirements are 35% minimum down payment and an ability to pay your mortgage payment. More »

 

Trust Deed Investing

Realty Q&A is a weekly column in which Lew Sichelman, a nationally syndicated columnist who has been covering the housing market for more than 40 years, responds to readers’ questions on real estate.

WASHINGTON (MarketWatch) — Question: I am new to trust deed investing. Is there a particular property niche in which I could get started for, say, $500 to $1,000? How does someone like me — someone who knows trust deed investing is a wise and sophisticated investment — start with but a small reserve? —N.J.

Answer: I turned to William Mencarow, publisher of the Paper Source newsletter, for your answer. A long-time investor in notes backed by real estate and other collateral who worked on Capital Hill years ago, Mencarow’s monthly publication is filled with heady advice and how-to articles, from the experts for the experts — and beginners just like you.

He suggested that as a first step in debt investing, you should pay off your own liabilities. Say you owe $1,200, which you are obligated to pay back at 10% interest over the next two years, or $55.37 a month for 24 months. If you purchased your own debt by persuading your lender to take $1,000 right now, you are putting an extra $55.37 in your pocket every month.

That means you created a monthly income stream of $55.37, producing a 29% interest “yield” on your own money. “That’s better than any trust deed investment, and you would never have to worry about default,” said Mencarow, who is now based in Kerrville, Texas.

If you are debt-free, then skip the above and consider several small steps you can take to begin investing in trust deeds, which are legal documents which transfer specific interest in the title to real property to a trustee. The trustee holds the trust deed as security for a loan or debt between the two parties.

Trust deeds are commonly used in Alaska, Arizona, California, Colorado, Idaho, Illinois, Mississippi, Missouri, Montana, North Carolina, Tennessee, Texas, Virginia and West Virginia.

Most other states have mortgages, which are filed differently but with the same results. However, a trust deed differs from a mortgage because there are three parties — the borrower (trustor), lender (beneficiary) and trustee, who purchases an interest in the property from the borrower. If the trustee is paid as promised, he no longer has any claim to the property. But if the borrower defaults, you take over the mortgage and the property is yours.

Mencarow says there are several ways to invest small amounts in trust deeds. But his rule of thumb is this: Never, ever buy a note secured by something you wouldn’t want to own yourself. That’s not the same as a property you wouldn’t want to live in yourself. There are plenty of good, solid houses that would make wonderful rentals but may not be in the location you’d like to reside or have enough room for you and your family.

Private Money Loans

Private money is a commonly used term in banking and finance. It refers to lending money to a company or individual by a private individual or organization. While banks are traditional sources of financing for real estate, and other purposes, private money is offered by individuals or organizations and may have non traditional qualifying guidelines. There are higher risks associated with private lending for both the lender and borrowers. There is traditionally less “red tape” and regulation.

Private money can be similar to the prevailing rate of interest or it can be very expensive. When there is a higher risk associated with a particular transaction it is common for a private money lender to charge an interest rate above the going rate