Trust Deed Investing is a tried and true formula for safe and profitable income generation, though most people have not had the opportunity to learn about this form of investment. We encourage you to learn more through the resources we have available on this website: here are some of the most Frequently Asked Questions we receive. If you have further questions, feel free to Contact Us anytime.

1. What is a Trust Deed?
2. Is there a fee for your service?
3. I see plenty of companies offering Trust Deed Investments. What is special about yours?
4. How do I know I am getting a good investment?
5. What should I look for when analyzing a Trust Deed Investment?
6. How and when do I get paid?
7. What is the minimum Investment?
8. How long are my funds tied up in a loan?
9. What return can I earn on my Investment?
10. What is the advantage of Trust Deed Investments as opposed to having my Financial Planner just handle the money?
11. How does Investing in Trust Deeds compare with other types of investments?
12. Why would a borrower pay the higher rates on a Private Trust Deed instead of going to the bank?
13. What happens if the borrower doesn't pay?
14. Can I use my self-directed IRA funds to Invest?

1. What is a Trust Deed?
   A Trust Deed is a security instrument. It is an instrument used to secure a Promissory Note to a piece of real property. When you invest in Trust Deeds, you are acting like the bank in that you supply the funds for the loan, and the note and Deed of Trust are in your name personally.


2. Is there a fee for your service?
   No, there is absolutely no fee for receiving, reviewing or investing in a trust deed. Our fees are received from the borrower at the time of funding.


3. I see plenty of companies offering Trust Deed Investments. What is special about yours?
   The key differentiator between KAMM Resources and other Trust Deed Investment providers is two-fold: 1) We have special relationships with many of our borrowers which allow us to offer our investors both debt and equity financing. This means our Trust Deed Investors can earn up to 20% on their investment, as opposed to the typical 9% offered by other companies which only offer debt financing; 2) All our loans undergo a rigorous pre-qualification process before being sent to our Trust Deed Investors for approval. The bottom line is that we will never present you an investment we would not fund ourselves.


4. How do I know I am getting a good investment?
   KAMM Resources acts as your partner in every step of the transaction. We receive dozens of requests weekly for loans. We review each application that comes through our office, and only fund qualified loans that meet our criteria. We will not offer you a Trust Deed Investment we would not do ourselves. Our investments are safer than the stock market or almost any other investment you will find.


5. What should I look for when analyzing a Trust Deed Investment?
   The three important things to look at are the property, the borrower and the exit strategy. We suggest that investors choose residential real estate in areas they are familiar with. Borrowers should be well-qualified, with documented income and assets. Finally, the borrower should have a viable exit strategy for your investment: either the proven capacity to refinance out of your loan or a working business model to sell off the property before the loan term expires. Typically, our loans have the following criteria: 60% Loan to Value or less, 8% or higher interest rate, 6-month term, Deed of Trust in first position, and a borrower whose credit score is above 680 with proven income and assets. We have a comprehensive Underwriting Guideline that we use to determine which loans are qualified by our standards for funding. Typically, all loans we present to our Trust Deed Investors have met these qualifications.


6. How and when do I get paid?
   KAMM Resources services your loan or outsources it for you by dealing directly with the borrower, collecting the borrower's payments and sending funds to you by mailed check or direct deposit. Borrowers make monthly payments on our loans. Typically you will receive your interest a few days after the borrower sends in his payment, before the 10th of the month. In addition, our Loan Servicing Agreement includes preparing annual tax filings for the investor(s) and borrower(s) and acting as the liaison with the Trustee if it becomes necessary.


7. What is the minimum Investment?
   There is no minimum or maximum amount you can invest, though typically our minimums are no less than $5,000. You can choose to buy the entire loan yourself or co-invest with others in a multi-lender or fractionalized loan.


8. How long are my funds tied up in a loan?
   The length or time of a loan is known as the term. The vast majority of the loans we work with are six month terms, and rarely over a one-year term.


9. What return can I earn on my Investment?
   The average return on our trust deed investments is around 8%, though we sometimes have opportunities to earn as much as 20% on a trust deed investment. This is accomplished through the use of equity financing, where the investor receives a portion of the equity of the sale of the property underlying the note.


10. What is the advantage of Trust Deed Investments as opposed to having my Financial Planner just handle the money?
    The advantage to Trust Deed Investing is that the investor gets to take a hands-on approach to the investment: you choose the level of risk and reward that works for you; you only place your capital in investments that make sense to you. If you like to take a more active roll in your investments, but want the safety and security of tangible assets and collateral, then Trust Deed Investing is the right investment for you.


11. How does Investing in Trust Deeds compare with other types of investments?
    When done right, Trust Deed Investing provides a good combination of low risk and solid regular monthly return. The below chart contrasts these and other measures for various types of investments:

	Savings Account	Stocks	Rental Property	Deeds of Trust
Risk Factor	Low	High	Moderate	Low
Security	High/up to 250k by the FDIC	Low	Medium	High
Costs	None/Low	Commissions	Maintenance, Management, Taxes, Insurance, etc	None
Monthly Income	Very Low	None/Low	Low/Medium	Medium
Involvement in Deals	None/Low	High	High	Low



12. Why would a borrower pay the higher rates on a Private Trust Deed instead of going to the bank?
    There are many reasons borrowers turn to private lenders. A few include:
    • The borrower is looking for a quick close
    • The borrower only needs the funds for a short period of time
    • Banks are not lending capital
    • Banks do not have suitable loan programs
    • The property needs some repairs



13. What happens if the borrower doesn't pay?
Most loans pay on time, though sometimes loan payments are a little late. In rare cases, after speaking with and mailing the borrower, the borrower becomes unable or unwilling to pay (as potentially with any loan or outstanding credit). In such cases, with the investor(s) permission, we start the foreclosure process to recover the value of the investment, unpaid interest and late fees, etc. This is a relatively quick and efficient mechanism.

14. Can I use my self-directed IRA funds to Invest?
Absolutely. In fact, many of our investors use self-directed IRAs to fund their trust deed investments. As you may know, there are tax benefits of using such funds depending on the type of IRA you have.