I strongly recommend against investing in one-year bridge loans. In theory, this strategy sounds great, but (1) these short-term bridge loans never pay off on time anyway; and (2) to maintain a diversified portfolio of trust deed investments, you will have to expose yourself to a great many different borrowers. Eventually you are going to run into a horrible fraud. It’s like having romantic relationship with two-dozen different partners every year. Eventually you are going to get seriously sick.
Instead, I recommend investing in loans with a term of at least five years. I hereby make two predictions, (1) you are going to like receiving a handsome interest check every month; and (2) you are going to have trouble keeping your money out on the street. Just when you find a good borrower who pays you like clockwork, some competing lender is going to pay off. The competition for good first trust deeds is incredible.
Once you find a good borrower, you should be in no hurry to get paid off.