Trust deed investment company
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A licensed trust deed investment company (TDIC) offers investments in collateral-backed property loans in the United States. Unlike private individuals who are generally subject to usury laws limiting interest rates on loans, TDICs can legally lend to property owners at rates determined by market demand. Because TDICs usually lend to borrowers with needs banks cannot accommodate (e.g., fast turnaround, multiple-use real estate projects), market rates for trust deed investments are usually significantly higher than bank mortgage rates.
TDICs originate, underwrite, fund and service the loans for individual and/or group investors. Trust deed investors receive regular interest payments throughout the loan term and
Licensing requirements for TDICs vary from state to state. Generally, TDIC activities are overseen by a state's governing real estate, lending or corporation authority, or some combination.[citation needed]
The private money loans provided by TDICs are also known as