What Makes First-Lien Trust Deeds So Secure – And Why LBC Capital Income Fund, LLC Focuses on Them

Ask any seasoned investor what keeps them up at night, and it’s rarely the return—it’s the risk. Especially for those managing significant wealth, the question isn’t just “How much can I make?” but “How likely am I to lose it?”

That’s where first-lien trust deeds enter the conversation. They’re not flashy. They don’t make headlines. But in the world of income-focused, asset-backed investing, they’re about as solid as it gets.

At LBC Capital Income Fund, LLC, we’ve structured our entire fund around this instrument – not because it sounds safe, but because it is safe when used with discipline. We’re not guessing. We’re protecting. And that starts with the legal and financial backbone that first-lien positions provide.

A first-lien trust deed is a legal agreement that secures a loan with real estate and places the lender in first position on title. What does that mean in practice? If the borrower defaults, the lender has the right to foreclose and recover capital before anyone else—before secondary lenders, before contractors, and before judgment creditors. It’s first in line, period. And that priority matters.

While the mechanics may resemble a mortgage, the structure creates a uniquely advantageous position for the investor. It offers the strength of collateral-backed lending combined with legal clarity that makes recovery swift and enforceable. You’re not investing in a promise. You’re investing in an enforceable claim on real property.

But there’s more to security than paperwork. The real strength of first-lien trust deeds lies in how they’re underwritten, monitored, and managed. A careless lender can still lose money on a “secured” loan. The deed may be first in line, but if the property was overleveraged or misvalued, that position becomes a technicality.

That’s why LBC Capital Income Fund, LLC doesn’t just invest in first liens – we invest in conservatively structured first liens. Our loans typically fall in the 60% to 70% loan-to-value range, which creates a significant equity buffer. If a borrower fails to repay, there’s still a 30%–40% cushion before our investors’ capital is at risk. That kind of margin is rare in most modern lending environments, and it’s exactly why our investors stick with us.

Unlike equity investments or unsecured debt, which rise and fall with market whims or management performance, trust deeds are rooted in the tangible. They aren’t built on forecasts. They’re backed by walls, foundations, and legal agreements filed with the county.

It’s a level of clarity and predictability that appeals to investors who are done with volatility. And in times like these when the public markets twitch on every headline and speculation fuels most “alternative” assets – that security isn’t just comforting. It’s strategic.

At LBC Capital Income Fund, LLC, we pair this first-lien focus with an old-school lending mindset: deep due diligence, in-house underwriting, zero fund leverage, and transparency at every step. We believe capital preservation is the foundation of smart investing. And we treat every loan as if it were our own money on the line—because it is.

This approach hasn’t made us the loudest fund in the room, but it’s helped us deliver what matters most to our investors: consistent income, zero principal losses, and peace of mind in a noisy financial world.

For accredited investors looking to earn monthly income without gambling on tech stocks or navigating the chaos of landlord life, first-lien trust deed investing offers a compelling path. And when done through a carefully managed fund like ours, that path becomes even smoother.

Because at the end of the day, real security isn’t about chasing yield. It’s about standing on solid ground. And that’s exactly what first-lien trust deeds—and LBC Capital Income Fund, LLC—are built on.

Want to learn more about how we protect capital while delivering steady monthly income? Reach out today.