It all started with a simple question: How can real estate investors earn consistent, high yield, passive income while mitigating risk?
For years, the founders of CrowdTrustDeed (CTD) had worked in the private lending space, carefully structuring deals that manually connected individual investors with real estate-backed opportunities. They had seen firsthand the struggles of investors trying to find non-correlated stock market volatility investments. Many cash-flow seeking investors were and are skeptical of scams, Ponzi schemes and ill-conceived real estate loans. These investors also wanted manageable investment sizes, online pledging and full transparency and vetting. Investors wanted a way to generate passive income while keeping their capital secured by a tangible asset.
Sandy MacDougall and his team carefully analyzed these investor requirements and invented the new CrowdTrustDeed marketplace in 2015. Starting with 1 investor, Sandy’s Mom, Investors came flocking to CTD as the new business model to directly buy a Trust Deed became an overwhelming winner. While investors come in all shapes and sizes at CTD, they all share the desire to have:
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- Monthly High Yielding Cash Flow
- Well underwritten investments
- Collateral is the Real Estate, not the Sponsoring Company
- Transparency into the entire due diligence, funding and servicing process
- Fast, Professional and Private Service with online pledging and due diligence
The Power of Trust Deed Investing and a Self-Directed Trust Deed Portfolio
Trust Deed investing is not new, however how these instruments are bought and sold is new. CrowdTrustDeed was built to solve these investor desires. Unlike traditional real estate equity investing, CTD investors do not have to manage properties, deal with tenants, or worry about market downturns affecting their rental income. Instead, investments are secured by a first or second position Trust Deed ensuring that their capital is backed by a tangible real estate asset.
To thrive, CTD had to answer more investor questions:
- How do I know which loans are the right fit?
- The team at CrowdTrustDeed developed and maintain a rigorous loan selection, origination and funding process. The power of CrowdTrustDeed lies in the investors’ ability to select the Trust Deeds that they want to invest in or not. Some investors like 1st TD’s, Some like 2nd’s. Some investors like Residential, some like Commercial. Some investors want low Loan to Value and lower yields while other investors like higher LTV and higher yields. To each his own on CTD! Investors can even select their parameters and will only be sent the loans that match their specific criteria.
- What happens if a borrower defaults?
- CTD and their sub-servicer deploy experience, tenacity and thoughtful work-outs to borrowers in distress. Borrowers have significant equity in the properties and work hard to keep this equity intact through a refinance or sale of a troubled property and loan.
- What sets CrowdTrustDeed apart from other ways Private Money Lenders sell Trust Deeds?
- CTD respects a Trust Deed investors time and provides a unique online experience where the lender knows in real time the availability of the loan or fractional interests in that loan. The Platform was conceived with Transparency and efficiency in mind. Unlike many Trust Deed investment transactions, CrowdTrustDeed offers a way for the investor to research, pledge, fund and execute loans in days that would normally take weeks.
- Every loan goes through a strict underwriting process, analyzing factors like borrower creditworthiness, loan-to-value ratios, and property market conditions. The team personally evaluates each borrower and project, ensuring that only the highest-quality opportunities are presented to investors.
- CrowdTrustDeed manages loans from start to finish. They oversee loan origination, servicing, payment collection, and, if necessary, asset recovery. This hands-on approach gives investors peace of mind, knowing that a professional team is actively protecting their investments.
A Secure and Predictable Portfolio Diversification Strategy
CTD Funds between 6-10 loans per month which presents investors with a constant flow of new Trust Deeds to invest in for the first time or to reinvest in after a payoff.
For investors seeking a self-managed trust deed portfolio that provides passive income, capital preservation, and transparency, CrowdTrustDeed offers a marketplace built on trust, expertise, and hands-on management. Whether you are an experienced investor or just getting started, the CTD Team ensures that each investment is structured for success.
Retired investors or Trust Deed investors looking to retire and maximize and grow their lifelong savings should heartily consider registering for the CrowdTrustDeed Marketplace. Start building your own Trust Deed portfolio today!
