This depends on the investment itself and whether we divide or “fractionalize” as it is called, the loan among two or more investors. On the lending side of the equation, our minimum loan amount is $35,000. However, the average size of our “smaller balanced” loans is $100,000, while the average size of our medium sized loans is $300,000. Although most of our loans are funded by a single investor, on multiple investor loans, the investors typically have at least $100,000 in any one investment. We can offer an opportunity to someone with less to begin investing in Trust Deeds, but lower initial investments generally take longer to place or must be fractionalized. There is no maximum investment amount.
What is the minimum investment for a trust deed?
About the Author: G. David Lapin
G. David Lapin is the president and Broker of Record of HanoverMC, a private money lending and trust deed investment firm located in Orange County, California and is an author and speaker on the topic of private money lending and trust deed investing. Lapin was most recently featured in Robert Irwin’s book “Armchair Real Estate Investor” and hosted his own radio show “The Hard Money Hour”. Lapin's professional career in real estate encompasses 30 years of entrepreneurial experience in both the commercial and residential sectors, bridging property management, development, construction, investment sales and finance including residential mortgage banking and brokerage - originating, processing and closing 5,000 + purchase & refinance transactions, and the underwriting and funding of private money transactions.
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