Find Out If Mortgage Investing Is Right for You!
Answer a few quick questions to see if secured, high-yield mortgage investments are the right fit for your portfolio.
What’s the Difference Between a Mortgage and a Trust Deed?
Mortgages and trust deeds both secure real estate loans, but they function differently.
Mortgages involve two parties: the borrower and the lender.
Trust deeds involve three parties: the borrower, the lender, and a trustee who holds the property title as collateral.
Key Difference
How Can I Invest in Mortgages?
There are several ways to invest in mortgages, each with its pros and cons:
Invest through a Mortgage Investment Company
  • Best for passive investors.
  • At Signature Capital Group, we handle the entire process including title insurance, underwriting, borrower vetting, and loan management allowing you to earn without the hassle. Double-digit returns with minimal effort.
Mortgages on an Open Market Exchange
  • Riskier because you don’t always know the borrower or loan quality.
  • Limited visibility and vetting make this a less secure option.
Invest in Mortgage REITs (Real Estate Investment Trusts)
  • Easier to access since REITs are traded on the stock market.
  • However, they offer lower returns (5-7%) and are tied to stock market fluctuations.
  • Higher loan-to-value (LTV) ratios = greater risk.
Do-It-Yourself Lending
  • Involves buying a property, selling it with seller financing, and managing the loan yourself.
  • High risk — you take on full responsibility for servicing the loan and handling defaults.
  • If the borrower stops making payments, foreclosure can be complex and costly.
Bottom Line
Investing through a mortgage investment company is often the safest and easiest way to earn fixed, high-yield returns.
What Types of Properties Can I Invest In?
Mortgage trust deed investing offers diversity across multiple property types, including:
Properties
Office buildings, medical complexes, retail spaces.
Industrial
Warehouses, manufacturing, light industrial facilities.
Multifamily Housing
Apartments, student housing, townhouses.
Hospitality
Hotels, motels, restaurants, bars.
Healthcare
Assisted living, nursing homes, private medical facilities.
Specialty Properties
Charter schools, churches, self-storage units.
Land & Development
Improved or unimproved land, mobile home parks, A&D loans.
Investors can choose from a range of property types to suit their risk tolerance and investment goals.
How Does a Private Lender Evaluate Properties?
Unlike traditional banks, private lenders focus on the value of the property itself, rather than the borrower’s credit score.

Here’s how Signature Capital Group evaluates properties:
1
Property Valuation
  • A third-party valuation firm assesses the property, considering construction type, comparable sales, and location trends.
2
Verification & Due Diligence
  • Even with a third-party valuation, we may send an additional expert to inspect the property.
  • For high-value properties, a Signature Capital Group principal may visit in person.
3
Market & Risk Analysis
  • For larger deals, we conduct stress tests to analyze future market scenarios.
  • Example: A property is valued at $1.5 million today but how would it perform in a downturn?
What Kind of Borrowers Use Private Lenders?
Private lending (also called hard money lending) is often misunderstood. It’s not just for borrowers with bad credit — many qualified professionals use private loans for strategic reasons.
Private lending provides a fast, flexible, and asset-based financing solution for borrowers who can’t (or don’t want to) go through a bank.
Self-Employed Borrowers
  • Traditional banks require proof of consistent income over multiple years which many business owners can’t easily provide.
  • Even if they have good credit, banks may refuse to lend.
Time-Sensitive Investors
  • Private loans can close in 2 weeks or less, while banks may take 6+ weeks.
  • This speed allows buyers to beat competing offers or secure deals before market shifts.
 Non-Traditional Properties
  • Many unique properties don’t qualify for conventional loans like cannabis dispensaries, gas stations, or niche commercial buildings.
  • However, if they have sufficient equity, private lenders can fund them.
Glossary of Mortgage Investing Terms
Mortgage investing comes with its own set of jargon and acronyms. Here’s a brief list to familiarize yourself with the concepts and remember that your Signature Capital Group advisor will always be available to answer specific questions that you have.
Automated Clearing House (ACH)
Broker’s Price Opinion (BPO)
Close of Escrow (COE)
Hard/Private Money Loan
Loan Sale Agreement (LSA)
Loan to Value (LTV)
Rate of Return (ROR)
Start Your Journey Toward Passive, Secured Income Today.
Now that you understand how mortgage-backed investments work, take the next step toward building a secure, high-yield portfolio.