Earn Secured Returns Backed by California Real Estate

Trust deed investing offers the unusual combination of attractive yields and real property collateral — without the headaches of being a landlord.

When you invest in a trust deed through South County Capital, you become the lender. Your investment is secured by a recorded deed of trust against real California property.

The borrower pays interest. You collect it. And the property backs every dollar you put in.

It's one of the oldest, most straightforward ways to earn passive income from real estate — and it's what we've built our business around.

What Is a Trust Deed Investment?

A trust deed investment is a loan secured by real property. Three documents form the foundation of every transaction:

The Promissory Note The legally binding agreement that defines the loan — the principal amount, interest rate, payment schedule, term, and any late charges or prepayment penalties. This is the borrower's written promise to repay.

The Deed of Trust The security instrument that protects your investment. The deed of trust transfers conditional title of the property to an independent trustee, who holds it on your behalf as the lender (beneficiary). If the borrower defaults, the trustee has the authority to foreclose and sell the property to recover your investment.

The Title Insurance Policy Protects your lien position and provides legal and financial protection against unknown title risks. Every loan we fund includes title insurance naming you as the beneficiary.

Together, these three documents mean your investment isn't based on a handshake — it's recorded, insured, and legally enforceable.

Why Investors Choose Trust Deeds

Real Property Collateral Your investment is secured by a physical asset — California real estate. We lend at conservative loan-to-value ratios, meaning there's a meaningful equity cushion between your investment and the property's market value. That equity is your first layer of protection.

Predictable Monthly Income Trust deeds pay regular interest, typically monthly. You know the rate, the term, and the payment schedule before you commit a single dollar. There are no market fluctuations, no quarterly earnings surprises, and no waiting to see what the property does at sale.

Short-Term Commitments Most of our loans run 12 to 24 months. You're not locking capital away for years. Shorter terms mean more flexibility — and more opportunities to reinvest as deals close.

No Landlord Headaches You earn real estate returns without owning property, managing tenants, or dealing with maintenance calls at midnight. We handle the underwriting, documentation, servicing, and all borrower communication.

Transparent, Deal-by-Deal Investing Every opportunity we bring to trust deed investors includes full documentation: a third-party appraisal, preliminary title report, borrower loan package, and a complete lender/purchaser disclosure statement (LPDS) as required by California law. You see the deal before you decide.

How We Protect Your Investment

South County Capital underwrites every loan with the investor's security as the primary consideration. Before any loan is funded, we complete:

Independent third-party appraisal — A licensed appraiser determines market value so you know exactly what collateral backs your loan
Preliminary title search — We verify property taxes, existing liens, chain of title, easements, and vesting before funding
Borrower loan package — Full application, income and asset verification, credit report, background check, and a clear exit strategy
Conservative LTV underwriting — We structure loans with meaningful equity cushions to protect your position
Fire and liability insurance — South County Capital is named as an additional loss payee on all policies
Complete disclosure package — Every opportunity includes a full lender/purchaser disclosure statement so you understand exactly what you're investing in

We are licensed by the California Department of Real Estate (DRE License #01884316) and operate in full compliance with California's multi-lender laws and trust deed investment regulations.

1st vs. 2nd Position Trust Deeds

First Position (1st TD) You are the senior lienholder on the property. In a default or foreclosure, you are paid first before any junior lienholders. First position trust deeds carry the lowest risk and typically offer moderate yields.

Second Position (2nd TD) You hold a junior lien behind an existing first mortgage. In exchange for that additional risk, second position trust deeds offer higher interest rates. We underwrite second position loans conservatively — keeping total loan-to-value ratios low enough that the property's equity protects your position even in a worst-case scenario.

We offer both positions and will clearly disclose which position your investment holds in every deal.

What to Expect as an Investor

Step 1 — Introduction & Registration We'll walk you through our process, answer your questions, and learn about your investment goals — minimum investment, preferred LTV ranges, 1st or 2nd position, property types, and target returns.

Step 2 — Deal Review When we identify a loan that matches your criteria, we send you a complete deal package: appraisal, title report, loan summary, borrower profile, and full LPDS disclosure. You review it at your own pace.

Step 3 — Commitment & Escrow If you decide to proceed, your funds go into escrow. The deed of trust is recorded in your name (or entity) at closing. You receive copies of all loan documents.

Step 4 — Monthly Income Loan payments are collected and disbursed to you on a regular schedule. We service the loan, monitor insurance and senior liens, and keep you informed throughout the term.

Step 5 — Payoff At loan maturity (or earlier payoff), your principal is returned through escrow along with any final interest due.

Regulatory Transparency

Trust deed investing in California is regulated by the California Department of Real Estate. The California DRE publishes a public guide — Trust Deed Investments: What You Should Know (RE 35) — that covers the rights and responsibilities of all parties involved. We encourage every prospective investor to review it.

Download the CA DRE Trust Deed Investment Guide (RE 35) →

We operate as a threshold lender regulated by the California DRE. All trust deed investments are made in full compliance with California's multi-lender law and associated disclosure requirements.

Ready to Learn More?

Trust deed investing is not right for everyone — it involves risk, and your principal is not guaranteed by any federal agency. But for investors seeking asset-backed passive income at competitive yields, it's a time-tested strategy with a clear structure.

If you'd like to discuss current opportunities, minimum investment amounts, and how our process works in practice, we'd welcome the conversation.