Direct Trust Deed Investment
Invest Directly in California Real Estate
Whole-note, first trust deed positions — you select the deal, you own the note, you hold the recorded lien. No blind pools, no fund fees, no lock-ups.
CDF originates, underwrites, and services the loans. You invest in the ones that match your goals and earn monthly interest secured by tangible California property.
Understanding the Investment
What Is Trust Deed Investing?
A trust deed investment is a loan you make to a real estate borrower, secured by a recorded lien on their property. It's the same instrument a bank uses when it issues a mortgage — except you're the bank.
When a borrower needs capital — to purchase, renovate, bridge to permanent financing, or access equity during a special circumstance — CDF originates and underwrites the loan, then presents it to investors like you. If you fund the deal, a first trust deed is recorded in your name at the county recorder's office, giving you the senior secured position on the property.
You earn monthly interest for the life of the loan. When the borrower pays off (typically by refinancing or selling), your principal is returned through escrow. The entire process is transparent, individually selected, and backed by a tangible California real estate asset.
How It Differs From Other Real Estate Investments
vs. REITs
You own the actual note, not a publicly traded share. No market volatility, no correlation to stock indices.
vs. Real Estate Funds
No blind pools, no management fees, no lock-up periods. You review and select every deal individually.
vs. Crowdfunding Platforms
Direct relationship with the originator. No platform intermediary, no fractional participation. You hold the whole note.
vs. Direct Property Ownership
No tenants, no maintenance, no property management. Passive monthly income without the operational burden.
The Investment Process
How You Invest With CDF
From your first call to monthly interest checks — here's exactly how a direct trust deed investment works, step by step.
Introduction Call
Speak directly with Francisco or Frank about your investment goals, risk tolerance, and preferred deal types. We learn what you're looking for so we only present relevant opportunities.
Review Deal Details
When a loan matches your criteria, we present the full package: property address, photos, independent appraisal, borrower profile, loan-to-value ratio, interest rate, term, and exit strategy.
Select & Fund Through Escrow
You choose which deals to invest in — every decision is yours. Capital is disbursed through a licensed escrow company with title insurance on every transaction.
Deed Recorded in Your Name
A first trust deed is recorded at the county recorder's office in your name (or your entity, trust, or custodian). You hold the senior lien position on the property — the same security a bank holds.
Earn Monthly Interest
Receive monthly interest payments for the life of the loan. CDF handles all servicing — payment collection, escrow management, and reporting. You receive a check or wire each month.
Principal Returned at Payoff
When the borrower refinances or sells the property, your full principal is returned through escrow. Many investors roll proceeds directly into the next available opportunity.
Investment Parameters
What to Expect
Every loan is individually underwritten and presented with full details. Here are the general parameters across our portfolio.
Loan-to-Value
60–75%
Conservative ratios on every deal
Yields
8.95–10.95%
Annual interest, paid monthly
Loan Terms
6–24 months
Short duration, capital recycles
Lien Position
First Trust Deed
Senior position only — never subordinate
Property Types
Residential · Commercial · Multi-Family
California real property
Minimum Investment
Whole Note
You fund the entire loan — no fractional pools
The CDF Advantage
Why Direct Investment
Trust deed investing through CDF gives you what funds, platforms, and pooled vehicles can't: direct ownership, full transparency, and individual deal selection.
You Choose Every Deal
No blind pools. You review every loan opportunity and decide which to fund. Full transparency on borrower, property, and terms before you commit a dollar.
You Own the Note Directly
Your name (or entity) is on the recorded deed of trust. You hold the actual security instrument — not a fund share, not a participation certificate.
First Position Only
Every investment is a first trust deed — the senior lien on the property. In a default scenario, first position is paid before all junior lienholders.
No Fund Fees or Lock-ups
No management fees, no performance fees, no redemption gates. Your returns are the stated interest rate on the note. Capital returns at maturity — no waiting for a fund window.
Personally Underwritten
Francisco and Frank personally review every loan. Independent appraisals, title searches, borrower vetting, and escrow-managed disbursements on every transaction.
California Real Estate Security
All loans are secured by California real property — one of the most liquid and valuable real estate markets in the world. Tangible asset backing every dollar you invest.
Flexible Account Structures
Invest With the Right Account
Trust deed investments work with multiple account types. We coordinate directly with your custodian or plan administrator.
Personal or Joint
Invest as an individual or with a spouse/partner. Interest income reported on your personal return.
Self-Directed IRA
Use your existing IRA through a self-directed custodian like Forge Trust, Provident Trust Group, or The Entrust Group. Interest grows tax-deferred or tax-free (Roth).
Solo 401(k)
Self-employed investors can deploy Solo 401(k) funds into trust deeds. We coordinate directly with your plan administrator for funding and payoff.
Trust or Entity
Invest through your living trust, family trust, LLC, or corporation. The deed is recorded in the entity name exactly as you direct.
Risk Mitigation
Protecting Your Investment
Capital preservation is our first priority. Every loan is personally reviewed by Francisco and Frank with multiple layers of protection built into every transaction.
We underwrite conservatively because our reputation depends on investor outcomes. Over 15 years and $200M+ in capital deployed, our track record reflects that discipline.
- Conservative LTV ratios (typically 60–75%)
- First trust deed position on all loans
- Independent appraisals on every property
- Title insurance on all transactions
- Borrower personal guarantees
- Escrow-managed disbursements
- Monthly reporting and transparency
- California real estate — liquid and valuable
Get Started
Ready to Invest?
The best way to get started is a conversation. Call Francisco or Frank directly — we'll walk you through our current inventory, answer your questions, and discuss which opportunities match your investment goals.
Trust deed investments through Capital Direct Funding are available to accredited investors. All investments involve risk. Past performance is not indicative of future results. This is not an offer to sell securities.