Trust deed investing can provide excellent returns, but like all investments, it carries risk. Lending Capital's underwriting standards and risk management practices are designed to protect investor capital at every stage. Here is how we ensure every loan meets our safety criteria before funding.
Our Underwriting Standards
Maximum LTV of 60% — We target a maximum loan-to-value of 60%, meaning the property must be worth at least 1.67x the loan amount. This equity cushion protects investors if property values decline.
Independent Appraisals — Every loan requires a current appraisal or Broker Price Opinion from an independent, licensed professional. We do not rely on borrower-provided valuations.
Title Insurance — A lender's title insurance policy is obtained on every loan. The policy protects investors against title defects, liens, and encumbrances that could affect the lien position.
Hazard Insurance — Borrowers are required to maintain property insurance with Lending Capital named as an additional insured. This protects the collateral from fire, flood, and other property damage.
Why Choose Us
60% Max LTV
At least 40% equity cushion on every loan to offset potential property value declines.
Prepaid Interest Reserves
Selected loans include prepaid interest held in escrow as additional payment security.
Shorter Terms
6–36 month terms reduce long-term risk exposure and provide faster liquidity.
Property Evaluation
Each property is evaluated as if we are purchasing it ourselves — conservatively and thoroughly.
1st Lien Priority
First trust deeds are our preferred lien position, providing superior recovery rights.
Rental Income Buffer
Income-producing properties provide cash flow that supports borrower payment ability.
What to Look for in a Trust Deed Investment
When evaluating any trust deed investment, focus on: the property's current market value and marketability, the borrower's equity stake, the lien position (first vs. second), the loan-to-value ratio, the property type and condition, and the exit strategy.
A strong exit strategy — whether property sale, refinance, or payoff from another source — is essential. We evaluate every borrower's realistic payoff plan before funding.
Lending Capital provides full documentation on every loan including the appraisal, title report, insurance certificates, and borrower information. You have access to all material information before committing capital.
To review current available opportunities, contact our investor relations team at (800) 648-0690.
Invest Safely in California Real Estate — Speak With Our Team
California's direct hard money lender — equity-based private money loan approvals, no bank red tape.