7 essential elements of Trust Deed Investments:

1. Knowledge, experience and integrity of the Mortgage Loan Broker through whom the transaction is conducted
   
   
2. Market value and equity in the property and the security of the loan
   
   
3. Borrower’s financial standing and creditworthiness
   
   
4. Escrow process involving the funding of the loan or the purchase of the notes
   
   
5. Documents and instruments describing, evidencing, and securing the loan
   
   
6. Loan servicing provisions, authority and compensation
   
   
7. Recovering your investment when the borrower fails to pay

For complete answers to these fundamentals, please download the
California Department of Real Estate's Trust Deeds Investments: What You Should Know (PDF).