Trust deed investments
One loan, secured by one California property.
A trust deed investment is a direct position in a single Alliance Portfolio-originated loan, not an interest in a pooled fund. You see the property and the transaction, and decide whether to fund that loan.
How a trust deed investment works.
Three instruments, in the order they exist: the note the borrower signs, the deed of trust recorded against the property, and the title policy that fixes your position.
The obligation
The promissory note
The borrower’s written obligation to repay, stating the amount, the rate, the payments and the term. You hold it: you are the lender.
The security
The deed of trust
Recorded against a specific California property. Legal title is held by a third-party trustee as security for the note.
- Trustor
- The borrower
- Trustee
- Holds legal title
- Beneficiary
- You, the lender
The protection
The title policy
Protection against unknown risks in the chain of title, and confirmation of where your lien stands in it.
Each loan records in first or second position, stated before you commit, and Alliance Portfolio services it for as long as it is outstanding.
Why investors consider individual trust deeds.
Three reasons investors give, and each of them is about knowing exactly what you hold.
You can see what secures it
A specific California property, a recorded deed of trust, and a stated lien position, not an allocation.
Income runs with the loan
The borrower pays interest for as long as the loan is outstanding, and that interest is the income on the investment.
You choose the transaction
Loans are presented one at a time, with the property, the position and the exit stated. Nothing is allocated to you.
One loan, or the whole portfolio.
Two structures for the same underlying business. California real estate loans Alliance Portfolio originates, underwrites and services. Neither is the better one.
What you hold
One loan, secured by one property.
An interest in a fund holding a portfolio of loans.
Who selects it
You do, loan by loan.
Alliance Portfolio does, within the Fund’s stated strategy.
Diversification
Concentrated in one property and one borrower.
Spread across the loans the Fund holds.
Term
The term of that loan. Capital returns when it is repaid.
Held while you remain invested, per the offering documents.
Underwriting and diligence
Every loan is underwritten before it reaches you.
The property, the title, the borrower, the exit and the insurance are each examined by Alliance Portfolio or by an independent third party.
Regulatory compliance
A threshold lender regulated by the California Department of Real Estate, with a quarterly Trust Account Inspection for Multi-Lender Transactions prepared by a CPA.
Property appraisal
A third-party independent appraiser inspects and evaluates the property.
Preliminary title search
Taxes, existing liens, chain of title, easements, restrictions and the borrower’s vesting.
Borrower loan package
Application and disclosures, income and asset verification, employment verification, credit report and background checks.
Use of proceeds and exit
What the money is for, and how the loan is repaid, a sale, a refinance or a completed project.
Fire and liability insurance
In place on the property, with Alliance Portfolio and successors named as additional loss payees.
See what you are investing in before you invest.
A complete due diligence package comes with every opportunity, so the decision is made on documents rather than on a description.
The property
The independent appraisal, and what Alliance Portfolio concluded from it.
The title position
The preliminary report, existing liens, and where this loan records.
The borrower
Verification, credit and background, and their position in the property.
The structure
Amount, rate, term, position, and any reserve, draw or release.
The exit
The stated use of proceeds and how the loan is repaid.
The documents
The note, the deed of trust, the insurance evidence and the servicing arrangement.
How income reaches you, and what can go wrong.
Income comes from loan payments rather than from a sale or a valuation. Investing in trust deeds carries risk, including the risk of losing capital, and Alliance Portfolio does not present that as solved.
Income
- Interest
- Paid by the borrower for as long as the loan is outstanding, and passed to you by Alliance Portfolio as servicer.
- Principal
- Returned when the loan is repaid, at maturity, on a sale or refinance, or earlier if the borrower pays it off.
- Terms
- The note and deed of trust for that transaction state the rate, the term, the position and every condition.
Risk
- Concentration
- One loan, one property. There is no portfolio to absorb a problem, the trade-off for choosing the loan yourself.
- Borrower default
- Alliance Portfolio services its own loans and deals with a problem directly. Enforcement is against the property, takes time, and can affect what is recovered.
- Value movement
- Borrower equity stands ahead of your capital. A significant decline can still reach it.
- Committed capital
- A loan held to its term, not a traded position. There is no secondary market and no redemption date.
How the process works.
Four steps, each handled directly by the people who underwrite and fund the loan.
Tell Alliance Portfolio what you are looking for
Position, property type, market and the size of investment you have in mind.
Review a loan
Presented with the property, the borrower’s position, the structure and the exit, and the package behind it.
Fund and record
The transaction closes through escrow and the deed of trust records, with title and insurance in place.
Hold and receive payments
Alliance Portfolio services the loan, passes on the payments, and tells you about anything that changes.
Ask to see a loan.
Tell us what you’re looking for and Alliance Portfolio will confirm what applies to you and walk you through a live transaction, the property, the position, the structure and the exit.