While no returns are guaranteed, our track record has produced returns between 9%-13% on average.

Our minimum investment amount is $20,000.

We accept investment in accordance with SEC Reg D 506(c) and is only available to accredited investors. Below are some examples of accredited investors. For full details about about accredited investor requirements, please visit the SEC website. Individuals: Net worth over $1 million, excluding primary residence (individually or with spouse or partner) Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year Investment professionals in good standing holding the general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82) Entities: Entities where all equity owners are accredited investors Entities owning investments in excess of $5 million The following entities with assets in excess of $5 million: corporations, partnerships, LLCs, trusts, 501(c)(3) organizations, employee benefit plans, “family office” and any “family client” of that office A bank, savings and loan association, insurance company, registered investment company, business development company, or small business investment company or rural business investment company Investment advisers (SEC- or state-registered or exempt reporting advisers) and SEC-registered broker-dealers Accredited Investor Verification Methods: A letter from a CPA or Attorney verifying your accredited investor status For third party verification, you can go to https://app.parallelmarkets.com/accreditation or https://www.verifyinvestor.com/.

Yes, non-US Citizens can invest if they are accredited investors.

Yes, you can! Investing in first mortgages through a self-directed IRA involves a few steps: Open a self-directed IRA account: To invest in first mortgages through a self-directed IRA, you'll need to open an account with a custodian that specializes in self-directed IRAs. The custodian will manage the account and process transactions on your behalf. Fund the account: Once you have opened the account, you will need to fund it with cash or rollover funds from an existing IRA or 401(k) account. Identify a suitable investment: To invest in first mortgages through a self-directed IRA, you'll need to find a suitable opportunity. One option is to invest in a mortgage fund that pools together multiple mortgages, or you can invest in individual mortgages directly. Conduct due diligence: Before investing in any mortgage, it's important to conduct thorough due diligence on the borrower and the property being used as collateral. This may involve reviewing financial statements, credit reports, and property appraisals. Complete the investment: Once you have identified a suitable investment and completed your due diligence, you can direct your self-directed IRA custodian to invest funds in the mortgage. Royal Palm Funding is a private lender that offers accredited investors the opportunity to invest in first and second mortgages though their self directed IRAs. These loans are secured by real estate and allows investors to earn a higher return on their retirement funds while diversifying their portfolio. However, as with any investment, there are risks involved, and investors should carefully evaluate the investment opportunity and consult with a financial advisor or tax professional before making any investment decisions.

Our loans are backed by commercial real estate. This includes apartment communities, shopping centers, office buildings, warehouses, NNN properties, single family investment properties, self storage facilities, mobile home parks, mixed use buildings, and more.

The majority of our investments are short term in nature and between 6 months to 3 years. Selective investments can be up 10 years.

No, our investments are not liquid.

All investments are illiquid and investors should expect to be invested the entire life cycle of the deal. If an investor requests to be bought out of their investment, we will consider the request but are under no obligation to.

Yes! That is the beauty of our structure. You can select the individual deals you want to invest in, rather than investing in a pool which may include deals you do not like based on location, asset type, or risk profile.

This is a legitimate risk in the mortgage business and should be taken seriously. It is not uncommon for borrowers to default on loans and the lender to foreclose on properties. Depending on the state and situation, the foreclosure process can take just a few months or even a few years. Investors should be aware that no distributions will be made while a loan is non-paying or in default and capital infusions may be necessary to pay for legal and carry costs. Fortunately, being in a debt position is the most secure position in the capital stack and typically gets paid back in full.

While it is not common to lose principal on a debt investment, it is possible. We typically do not invest in debt that is higher than 65% of property value, leaving a large cushion for property value decline but if a property value does declines below 65% of the original value, it may result in principal loss.

Investors are paid distributions monthly. Note that if a borrower is not current on their loan payments or is in default, the investors will not get distributions until either the borrower resumes payments or a capital event occurs.

The length of time it takes to exit a mortgage investment in which the borrower defaults can vary depending on several factors, such as the state where the property is located, the specific foreclosure process, and any legal challenges or delays. In general, the foreclosure process can take several months to a year or more. Once the foreclosure process is complete, the property can be sold or rented out, but the timeline for selling or renting the property can also vary depending on market conditions and other factors. It's important for investors to be prepared for the possibility of a longer exit timeline in the event of a borrower default.

In a trust deed or mortgage investment, foreclosure is the legal process by which the lender takes possession of the property to recover the outstanding balance of the loan. The foreclosure process in a trust deed investment is typically faster and less expensive than in a mortgage because it is a non-judicial process. If the borrower is delinquent in their payments, the lender or trustee can initiate the foreclosure process by filing a notice of default with the county recorder's office. The borrower will then have a certain period of time to cure the default by paying the outstanding balance, including any accrued default interest, late fees and penalties. If the borrower fails to cure the default, the lender can proceed with a notice of sale, which sets a date and time for the trustee to auction the property. At the trustee sale, the property is sold to the highest bidder, typically for cash or a cashier's check. If the property is sold for more than the outstanding balance of the loan, the excess funds will be distributed to any junior lienholders or the borrower. If the property is sold for less than the outstanding balance, the lender may pursue a deficiency judgment against the borrower for the remaining balance.

If real estate values drop sharply during the course of a trust deed or mortgage investment, it can potentially put the investor's principal investment at risk. In a worst-case scenario, the property may become worth less than the outstanding loan amount, leaving the investor with a loss. However, it's important to note that trust deed investments are typically structured to mitigate some of the risks associated with declining real estate values. One way this is done is through loan-to-value (LTV) ratios, which limit the amount of the loan relative to the value of the property. For example, if the LTV ratio is 65%, the loan amount cannot exceed 65% of the property's value. This can help to protect the investor's principal investment and reduce the risk of loss. Overall, while a sharp drop in real estate values can certainly be a risk to trust deed or mortgages investments, these investments are typically structured to minimize this risk as much as possible.

Yes, you can use a self-directed IRA for trust deed and mortgage investing. A self-directed IRA allows you to invest in a wide range of alternative investments, including trust deeds. To invest in trust deeds and mortgages with a self-directed IRA, you would need to set up a self-directed IRA with a custodian that allows for alternative investments. You would then use the funds in your self-directed IRA to invest in the trust deed. The income generated by the trust deed would flow back into your self-directed IRA, allowing for tax-deferred growth.

Diversification: Investing with others allows you to diversify your portfolio, as you can invest in multiple trust deeds and mortgages with different risk profiles. This helps to reduce overall risk and increase the potential for returns. Ability to Invest in Larger Deals: Pooling funds with other investors may allow you to participate in larger deals that would not be possible on your own.

The amount to invest in trust deeds can vary depending on the specific opportunity, the investor's financial situation, and their investment goals and risk tolerance. Here are some factors to consider when determining how much to invest in trust deeds: Minimum Investment: Some trust deed investment opportunities may have minimum investment requirements. These can range from $20,000 and up. Risk Tolerance: The amount to invest in trust deeds and mortgages will depend on an investor's risk tolerance. Trust deed ann mortgage investing carries risks, and investors should only invest an amount that they are comfortable losing if the investment does not perform as expected. Diversification: It's generally recommended that investors diversify their investments to reduce risk. This can mean investing in multiple trust deeds and mortgages or spreading investments across different asset classes. Cash Flow Needs: Investors should consider their cash flow needs when determining how much to invest in trust deeds. Trust deeds and mortgages can provide consistent income, but investors may also need to maintain liquidity for other expenses or investment opportunities.

To invest with us, please reach out to Info@RoyalPalmFunding.com or call us at 561-400-7936.

Mortgage investing is often considered a higher yielding investment than most because it typically offers investors higher interest rates compared to traditional fixed-income investments like bonds or CDs. When investors invest in a mortgage, they are essentially lending money to a borrower secured by a deed of trust or mortgage, which is a legal document that serves as a lien against a property. In general, the interest rates for these investments range from 9-12%+ depending on the terms of the mortgage and the borrower's creditworthiness. Additionally, private mortgage investments typically have a shorter term than traditional fixed-income investments, typically ranging from 6 months to 3 years. This shorter duration means that investors can see returns on their investment relatively quickly, potentially resulting in a higher yield compared to longer-term investments.

Trust deed investing is a form of real estate investment where an investor lends money to a borrower secured by a trust deed, which is a legal document that serves as a lien against a property. In this type of investment, the investor becomes the lender and receives regular payments from the borrower.

In a trust deed investment, due diligence typically includes a thorough review of the borrower's creditworthiness and the property's market value and condition. This may involve obtaining: - Property financial review including Profit & Loss, Rent Roll, Leases, Market Rents, and Sales Comparables - Market Analysis - Inspecting the property - Reviewing title reports and insurance policies - Verifying the borrower's income, employment, and credit history

No, investors do not need to inspect each property upon investing in a trust deed. While conducting a physical inspection of a property before investing in its deed of trust can be beneficial, it is not always necessary. The lender typically will provide an inspection report to the investor which is included in the due diligence file.

If the borrower is delinquent in a trust deed, it means that they have failed to make their scheduled payments on time. In such a case, the lender can initiate a foreclosure process to recover the amount owed on the loan. The exact process for foreclosure can vary depending on the state and local laws, as well as the terms of the trust deed agreement. Generally, the lender will send a notice of default to the borrower and initiate legal proceedings to take possession of the property and sell it to recover the outstanding balance of the loan. If the property is sold at auction for an amount that is less than the outstanding loan balance, the borrower may still be responsible for paying the difference, known as a deficiency. However, some states have laws that prohibit lenders from pursuing deficiency judgments, while others have restrictions on the amount that can be pursued. It's important to note that foreclosure can be a lengthy and costly process for lenders, and they typically try to avoid it if possible. As a borrower, if you are facing financial difficulties and are unable to make your loan payments, it's important to communicate with your lender to explore options such as loan modifications or repayment plans that may help you avoid foreclosure.

A first trust deed is a type of loan that has the first priority lien on a property, which means that it is the first loan to be paid off in the event of a default or foreclosure. This makes it less risky for lenders and generally offers lower interest rates for borrowers. A second trust deed, also known as a junior lien or second mortgage, is a loan that is subordinate to the first trust deed. This means that it has a lower priority in terms of repayment in the event of default or foreclosure. Because second trust deeds carry a higher risk for lenders, they often come with higher interest rates than first trust deeds. In a real estate transaction, a first trust deed is typically the primary mortgage used to finance the purchase of a property, while a second trust deed is used to borrow against the equity in a property or to provide additional financing for a property that already has a first trust deed in place.

Consistent income: Trust deed investments typically offer a fixed rate of return, which can provide consistent income for investors. Potential for higher returns: Trust deed investments can offer higher returns than traditional fixed-income investments such as bonds and CDs. Short-term: Trust deed investments are often short-term, typically ranging from 6 to 24 months. This can provide investors with a quick return on their investment. Secured: Trust deed investments are secured by real estate collateral, which can reduce the risk of loss compared to unsecured investments. Passive investment: Trust deed investing can be a passive investment, meaning investors can earn income without actively managing the investment on a day-to-day basis. Diversification: Trust deed investing can provide diversification in a portfolio of investments. This can help to reduce overall risk and increase potential returns. Customizable: Trust deed investing can be customized to meet the specific needs and preferences of individual investors. Avoiding volatility: Trust deed investing can provide a steady income stream that is not subject to the volatility of the stock market or other investment markets. Experienced professionals: Investors in trust deeds can benefit from working with experienced professionals who can help to manage risks and identify investment opportunities. Low correlation with other investments: Trust deed investments can have a low correlation with other investments, such as stocks and bonds, which can help to diversify a portfolio and reduce overall risk.

Lack of liquidity: Trust deed investments are generally illiquid, meaning that it can be difficult to sell the investment quickly if you need access to your funds. Default risk: There is always a risk that the borrower may default on the loan, which can result in a loss of principal and interest. Market risk: The real estate market can be volatile, and changes in market conditions can affect the value and performance of trust deed investments. Regulatory risks: The laws and regulations governing trust deed investments can vary by state and can be complex. This can create additional risks and costs for investors. No FDIC insurance: Unlike bank deposits, trust deed investments are not insured by the FDIC. This means that if the borrower defaults, you could lose some or all of your investment. Limited control: As an investor in a trust deed, you have limited control over the loan terms and the borrower's actions. This can make it harder to mitigate risks or adjust the investment strategy. Legal process: In the event of a default, the foreclosure process can be lengthy and costly. This can create additional risks and expenses for the investor.

Property Type: Residential trust deeds are used to fund the purchase or refinance of residential properties, such as single-family homes, townhouses, and condominiums. Commercial trust deeds are used to fund the purchase or refinance of commercial properties, such as office buildings, retail spaces, and industrial buildings. Borrower Type: Residential trust deeds are typically issued to individual borrowers who are purchasing or refinancing a primary residence or investment property. Commercial trust deeds are typically issued to business entities, such as corporations or LLCs, who are purchasing or refinancing a commercial property. Loan Size: Residential trust deeds are typically smaller in size than commercial trust deeds. The average loan amount for a residential trust deed is often less than $1 million, while the average loan amount for a commercial trust deed can range from $1 million to $10 million or more. Loan Terms: Residential trust deeds typically have shorter loan terms than commercial trust deeds. Residential trust deeds may have terms of 5-30 years, while commercial trust deeds may have terms of 5-10 years or less. Interest Rates: Interest rates for commercial trust deeds are typically higher than those for residential trust deeds. This is because commercial properties are often considered higher risk than residential properties. Underwriting: Underwriting for commercial trust deeds is typically more rigorous than underwriting for residential trust deeds. Lenders may require more documentation and conduct more extensive due diligence before approving a commercial trust deed.

Investment Size: Investing in real estate typically requires a larger upfront investment than investing in trust deeds. With trust deeds, you can invest in a smaller amount and still have a stake in a real estate investment. Risk: Investing in real estate can be riskier than investing in trust deeds. With real estate, you have to deal with potential maintenance issues, tenant problems, and other unforeseen events that can negatively impact your investment. With trust deeds, you are essentially acting as a lender and have less direct exposure to these risks. Liquidity: Investing in real estate can be less liquid than investing in trust deeds. With real estate, it can take longer to sell a property and get your money back. With trust deeds, you may have the option to sell your investment or collect returns on a more regular basis. Control: Investing in real estate provides more control over the investment. You can make decisions on the property, such as how to rent it out, how to maintain it, and how to sell it. With trust deeds, you have less control over the specific properties and borrowers you invest in. Returns: Both trust deeds and real estate can offer attractive returns, but the potential returns may differ. Trust deeds typically offer a fixed rate of return, while real estate returns can vary based on factors such as location, rental income, and property appreciation. Time Commitment: Investing in real estate typically requires a significant time commitment, as you have to manage the property, find tenants, deal with maintenance issues, and more. With trust deeds, you are essentially acting as a lender and have less direct involvement in the day-to-day management of the property. Diversification: Investing in trust deeds can offer more diversification than investing in a single real estate property. With trust deeds, you can invest in multiple properties and borrowers, which can help spread out your risk. With real estate, your investment is typically concentrated in a single property. Financing: Investing in real estate often requires a mortgage or other financing, which can add additional costs and risks. With trust deeds, you are essentially providing financing to the borrower and don't have to worry about securing a mortgage. Tax Benefits: Real estate investments can offer tax benefits such as deductions for mortgage interest, property taxes, and depreciation. With trust deeds, you may not be eligible for the same tax benefits. Market Conditions: The real estate market can be more volatile than the trust deed market, as it is influenced by a wide range of factors such as interest rates, economic conditions, and more. Trust deeds can offer more predictable returns, as the interest rate and terms are typically fixed.

Your investment decision comes down to whether you want to personalize your investments or watch from the sidelines. Deciding to participate in individual trust deeds allows you to further your understanding of mortgage investing. Investment Size: Individual trust deeds typically require a larger investment, while trust deed funds allow investors to invest smaller amounts. Risk: Investing in individual trust deeds can be riskier than investing in a trust deed fund. With an individual trust deed, your investment is tied to a single property and borrower, and if the borrower defaults, you could lose some or all of your investment. Trust deed funds, on the other hand, typically invest in a diversified portfolio of loans, which can help reduce risk. Liquidity: Individual trust deeds can be less liquid than trust deed funds, as it can be difficult to sell a single trust deed investment. Trust deed funds typically offer more liquidity, as investors can typically buy or sell shares in the fund. Control: Investing in individual trust deeds allows you more control over the specific properties and borrowers you invest in. With a trust deed fund, you are entrusting the management of the fund to the fund manager. Fees: Trust deed funds typically charge management fees, which can eat into your returns. Individual trust deeds may have fewer fees, but you will need to perform more due diligence to ensure that you are making a sound investment.

There are several ways to learn how to invest in trust deeds: Browse, email, or call us directly: Our extensive history as a private lender and real estate investment firm has given us the opportunities to best understand mortgage investments and how to keep investors' money safe. Networking: Networking with other investors and industry professionals can provide valuable insights and information on trust deed investing. This can include attending industry events, joining industry organizations, or connecting with other investors through online forums or social media. Professional Education: There are several professional education programs and courses that focus on trust deed investing. These programs can provide in-depth education on the industry and investment strategies, and may also offer certification or designation programs. Financial Advisors: A financial advisor with experience in real estate investing can provide guidance on trust deed investing as part of an overall investment strategy. They can help evaluate potential investments, assess risk, and provide ongoing management of the investment.

The time it takes to invest in trust deeds can vary depending on the method of investment and the specific opportunity. Here are some factors that can impact the timeline: Due Diligence: Before investing in any trust deed opportunity, it's important to perform thorough due diligence to evaluate the borrower, the property, and the loan terms. Depending on the level of due diligence required, this can take anywhere from a few days to a few weeks. Funding: Once an investor has decided to invest in a trust deed, they will need to provide the funds to the borrower or investment fund. The timeline for funding can depend on the payment method and the specific requirements of the investment. Loan Term: Trust deeds can have varying loan terms, ranging from 6 months to 3 years or more. The length of the loan term can impact the timeline for realizing returns on the investment. Exit Strategy: Investors should have an exit strategy in place before investing in a trust deed, whether that means waiting for the loan term to end or selling the investment early. The timeline for realizing returns will depend on the chosen exit strategy.

If the borrower files for bankruptcy in a trust deed investment, the trustee typically files a claim in the bankruptcy proceeding to protect the interests of the investors. Depending on the type of bankruptcy filed, there may be a temporary delay in receiving payments, but the trustee will work to ensure that the investors receive their share of the proceeds from the sale of the property. In a Chapter 7 bankruptcy, the property is usually sold to pay off the borrower's debts, and the investors will receive their share of the proceeds. In a Chapter 11 bankruptcy, the borrower may have the opportunity to restructure their debt, and the trustee will work to ensure that the investors receive the payments due to them under the terms of the trust deed. It's important to note that the exact process can vary depending on the specifics of the case and the laws of the state in which the property is located.

While this will depend on the property, borrower and situation, our First Mortgages typically price at 10%+ and Second Mortgages price at 13%+

We specialize in funding deals quickly! Our typical closing process only takes 1 - 2 weeks.

No, we do not require appraisals.

No, we do not have a minimum credit score requirement.

While we do not fund ground up construction deals, we do fund value deals deals that require renovations. We can also fund late stage construction projects.

We are typically able to provide a term sheet within 24 hours of receiving a submission.

Please email us at info@RoyalPalmFunding.com or call us at 561-400-7936

Most of our first mortgages max out at 65% - 70% and our second mortgages max out at 70% - 80% of value.

We always protect our brokers by including the broker fee on our term sheet. The broker fee is listed on settlement statement and brokers are paid at closing.

For investment opportunities, please contact Noah Miller at Noah@RoyalPalmFunding.com or visit our investor page here