California DRE & NMLS Licensed · Since 1980
INVESTMENT AT A GLANCE
What You Need to Know
Every investment is secured by a first or second position trust deed on California real estate. You become the lender of record, receive monthly interest payments, and hold the loan documents until the borrower pays off the loan.
1980
YEAR FOUNDED
8–12%
TYPICAL ANNUAL RETURNS
$10K
MINIMUM INVESTMENT
≤65%
MAXIMUM LTV
WHY DLS
Why investors choose Diversified Loan Services.
45+ Years of Conservative Underwriting
We've originated and serviced trust deed loans through multiple real estate cycles since 1980. Our underwriting discipline is the reason our investors come back deal after deal.
California Real Estate Collateral
Every loan is secured by California real estate. We prefer first-position trust deeds — the senior claim on the collateral — but also selectively fund second-position loans where the structure supports strong returns without compromising capital preservation.
In-House Loan
Servicing
Your loan is serviced by the same DLS team that underwrote it. Monthly payment processing, investor reporting, and any collection or workout activity is handled internally — not outsourced.
CAPITAL PRESERVATION
How your investment is protected
Trust deed investments are secured by real property — but the strength of that security depends on how the loan is structured. At DLS, every investment includes:
01
Collateral-Based Underwriting
We lend against property value, not just borrower creditworthiness. Our maximum LTV is 65% or lower on most loans. Every loan is underwritten so the property value supports the total debt with a meaningful margin.
03
Property
Insurance
The borrower is required to maintain property insurance naming the investor as additional insured, protecting the collateral against physical loss.
02
Title Insurance
A title insurance policy protects the lender's position against any undisclosed claims on the property — naming you as beneficiary.
04
California Non-Judicial Foreclosure
If a borrower defaults, California is a non-judicial foreclosure state and the property is sold to the highest bidder at a trustee sale.
TAX-ADVANTAGED
Invest tax-deferred or tax-free through a Self-Directed IRA.
Trust deed investments can be held inside a self-directed IRA, allowing you to invest IRA funds in real estate-secured loans while retaining the tax advantages of a traditional or Roth IRA. Depending on your IRA structure, interest income can compound tax-deferred (Traditional/SEP IRA) or tax-free (Roth IRA).
Because a self-directed IRA typically owns 100% of the income generated by the investments in the account, your retirement funds can grow without tax drag.
DLS works with several established self-directed IRA custodians. If you don't yet have a self-directed account, we can refer you to custodians our investors have used successfully.
Eligible Account Structures
Cash / Individual
Traditional / Roth / SEP IRA
LLC
Trust
Solo 401(k)
Custodial Account