Real Estate-Backed Investing, Built on California Experience.

It is a private loan secured by real estate. Your capital funds a loan to a borrower who is buying or refinancing property, and a recorded deed of trust makes that property the collateral. The borrower pays interest over the term, and principal is returned when the loan pays off.

Trust deed investments offered by Sterling Pacific Financial are intended for accredited investors. If you are not sure whether you qualify, Janeth can walk you through the general criteria, and you may be asked to verify your status before investing.

Whole notes: you hold an entire loan secured by a specific property. Fractional notes: you share a single loan with other investors, each holding a fractional interest. Mortgage pools: you participate in a diversified pool of private real estate loans rather than a single loan.

Each loan is secured by California real estate through a recorded deed of trust. Loan-to-value (LTV) matters: on a $1,000,000 property, a $700,000 loan (70% LTV) leaves 30% equity as a cushion between your principal and a loss. The lower the LTV, the larger that cushion.

Sterling Pacific Financial services each loan, collects the borrower’s payments and sends your distributions. Interest is paid over the term of the loan on the schedule set out in the loan documents, and at payoff your principal is returned to you or can be reinvested in a new opportunity.

Minimum investment amounts and loan terms vary by opportunity. Janeth can share the details of current opportunities and help you find one that fits your goals.

Many investors use self-directed retirement accounts to invest in trust deeds. Ask Janeth whether a specific opportunity can be funded from your account, and talk with your custodian and tax adviser about the rules that apply to your account. Our upcoming Solo 401(k) education series covers the basics.

Sterling Pacific Financial services the loan and manages the response, from working with the borrower on a solution to enforcing the deed of trust if needed. Janeth remains your contact for the life of the investment, including if a borrower needs a workout. Resolving a default can take time, and recovery of principal is not guaranteed.

Trust deed investments involve risk, including possible loss of principal. They are generally illiquid, meaning you should expect your capital to stay invested until the loan pays off, and they are not insured or guaranteed. Property values, borrower performance and the time needed to resolve a default can all affect results. Review all offering materials and consult your own advisers before investing.

Yes. Sterling Pacific Financial has been lending against California real estate since 1998 and is headquartered in Watsonville. Loans are arranged or made pursuant to a California Financing Law license, CFL #605 4217. DRE #01825492.