Trust Deed Investing - Benefits and Risks

What are the risks of Trust Deed investing?

There are many risks if you choose to pursue Trust deed investing. A very big one is that this is not a liquid investment. That means that you cannot cash this in for immediate capitol

like you would be able to with a government bond or shares in a company. No, this is one investment that you have to ride it through. You will have to wait until the borrower pays of the loan, or in the event such as a foreclosure, sold the property.

Another risk comes with the legal side of things. If there is any error in the documentation or due diligence of the trust deed investing papers, than there is the potential for great risk. You may face litigation or title disputes which may force you into court. Such legal matters are expensive, but they would be necessary to protect your investment. A lot of people are involved with trust deed investments, and if one or more of them are not trustworthy, you could have a potential loss on your hands.

One of the most likely risks is that the borrower defaults on the loan. Then it will be up to the investor to sell the property. Best case scenario is that the amount of the loan will be recovered, but oftentimes, there will be a loss.

How can I decide if this is for me?

Do the risks outweigh the profit opportunity in Trust deed investing?

There are a lot of risks involved in Trust deed investing. They take a lot of time and knowledge and hard work to be successful. But the potential profit is very alluring. Be sure to take the time to fully understand what you are getting into, find good solid people who have a knowledge of the business, and you will have the opportunity to make a lot of money! If all of this sounds like something you can do, than Trust deed investing may just be for you!

Setabay Loans
Dennis Dahlberg
23335 N 18th Drive Site 120
Phoenix AZ 85027
www.SetabayLoan.com

Are you interested in Trust Deed Investing?

Are you interested in Trust Deed Investing?

Trust deed investments are incredibly appealing due to the fact that most investors make an

Setabay Loan Trust Deed Investing

average of 20-50% profit annually. However, trust deed investing are not for everyone and every situation. Very often people suffer substantial losses because of poor decisions, or just bad luck. There is usually a specific kind of person that has what it takes to make a large profit.

Becoming one of those who succeed in Trust deed investing takes certain skills as well as personal qualities. There are some things that can help you as you being the process.

1. It is important that you take an active role in your Trust deed investing. It may sound obvious, but take the time to investigate the property yourself. Know what you are looking at, which may mean some earlier research, but will be worth it in the long run if you can identify what will be incredibly counter-productive cost wise, and what will be a quick easy fix. Also be sure to educate yourself on the location. Some areas may seem like a good spot, but careful research is also necessary. Sometimes construction work is planned around the area that may lower the value. A good rule of thumb is to avoid houses that are considerably more appealing, or less appealing, than the surrounding properties in the area. Be on site, talk to people, and be active in your research. That knowledge will pay off!
2. Along with having on site knowledge of your potential investment, it is vital that you have the knowledge of a good Realtor Having a thorough understanding of the market is key to being successful. Commercial, office, and residential markets vary from each other so knowing about one will not necessarily give you the answer that you need concerning another. The different stages of growth and decline in the market will also have a bearing on your decision. And it is not just the current market that you should concern yourself with. The future markets are also key in your success with Trust deed investing.
3. While it is important to know much of this yourself, it is sometimes necessary to seek outside help and advice. There are good people who are good at their jobs, and it would be senseless to pass on their knowledge. Trust deed investing take a lot of work and a lot of planning in various stages. Delegating some of the details to those who have extensive history in that area is very wise. That does not excuse you from taking an active part in the process, it just limits much of the runaround and expedites matters.

Mortgage Broker

Setabay Loan
Dennis Dahlberg
23335 N 18th Drive Site 120
Phoenix AZ 85027
www.SetabayLoan.com

What is Trust Deed Investing?

What is Trust Deed Investing?

Sounds simple enough, right? Trust Deed Investing can get quite complicated if the borrower or lender does not understand what they are getting into. However, with a quick briefing on this practice and how it works, you can feel sure about your decision to become involved with a trust deed loan.

Basically, trust deed investing is a loan secured by real estate. A piece of property or real estate is used as collateral for the loan, ensuring that it is fair for all parties involved. The loans vary in length but are generally shorter than traditional bank loans, and most end up being anywhere from 1-5 years. Professional real estate investors choose properties/lenders to fund projects and purchases when banks deny them. Since banks are a little more wary of lending to borrowers who are looking to purchase “fixer-uppers,” trust deed investing can often come in very handy.

Dennis Dahlberg
Broker/RI/CEO/MLO
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.SetabayLoan.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Understanding Trust Deed Investing

First, you probably have the question all investors have…what exactly is trust deed investing and how does it work? In simplest terms, a trust deed is a simple document recorded with the county that creates a secure lien on real estate property. That property then becomes collateral for lenders and the trust deed holder.

Basically, this is how they work: a borrower needs a loan for real estate. (This can be property they already own or property they are hoping to purchase.) The proper documentation is created for a Promissory Note which is an agreement that the borrower will repay the lender on an agreed upon amount. The trust deed itself is what makes the contract binding. Since the property is used as collateral for the loan, the trust deed investor (person who lends the money) can use the property as a form of repayment to get their money back.

Why Trust Deed Investing Is Used

Generally, trust deed investingcomes at a bit higher price than traditional bank loans. The interest rates are higher, making them more difficult to pay back. So why would anyone participate in trust deed investing then? The reasons are abundant, actually.

First, a bank loan can take quite a while to process. With trust deed investing, the loan is quick and the borrower can receive the money more quickly than dealing with all the messy paperwork. Another reason people prefer these types of loans is because they are generally more short-term than bank loans, with the length of most loans ranging anywhere from 1-5 years.

One of the bigger factors people take into consideration when investigating trust deed investing is because they do not necessarily have the credit to qualify for a bank loan. When a bank turns a person down because of bad credit, they often feel they have nowhere to turn. However, with these loans, it makes their dreams of purchasing real estate with a low credit rating very possible.

Banks also consider the worth of the property when deciding to lend to a borrower. While trust deed investors also consider the property, they do not weigh it as heavily. Thus, these types of loans are easier to obtain.

Broker Level 4 Funding LLC

Dennis Dahlberg
Broker/RI/CEO/MLO
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.SetabayLoan.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ

Help Wanted Arizona Mortgage Loan Originator Loan Officer Open Position

PRIMARY OBJECTIVE:
Level 4 Funding LLC specializes in the Sub Prime and Private Money Lending Environment. 

You will:

• Obtain and analyze customer financial and credit data.
• Manage your personal loan pipeline.
• Serve as the primary liaison with bowers and outside entities (realtors, title and escrow officers, etc.) and other company employees to facilitate a prompt and efficient loan closing
• Negotiate terms and conditions of loan programs with borrowers.
• Work with our Loan Processing Staff.
• And you will make a lot of money.

What we provide for you:
Percentage  1.5% of each deal.

In house leads. We are number #1 on Google.

Employee Benefits:
Sorry no benefits, you just make a lot of money.

You will have an office, but you can work independently away from the office.

Required Skills and Qualifications:

Must be licensed as a Mortgage Loan Originator (MLO) in Arizona

Must be able to close the deal.

Prior Loan Origination Experience.

About Us:
Level 4 Funding is a Mortgage Broker Company with an array of in house investors and wholesale lenders.  We are in a niche market specializing in FHA/VA, Sub Prime, Conventional and Private Hard Money Loans.  

We use:

Point Central, Caylx.

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

www.Level4Funding.com

623-582-4444

Benefits of Trust Deed Investing

Advantages of Trust Deed Investing

The advantages of trust deed investing are plentiful. Here are just a few examples:

-The investment is back by physical property that is used as collateral (rather than just a promise from the bank, etc.)

-You are in a good equity position as you can receive up to 30% of the property value

-Payments are sent directly to you and are not handled by a middleman

-The return on your investment is great—much better than a bank even

-The property is protected by Hazard Insurance

-And, most importantly, YOU are in control of your investment. 

No one can tell you what you can or cannot do with it. The flexibility of trust deed investing is great for investors and thousands of people have experienced great success in using their money this way.

Dennis Dahlberg
Broker/RI/CEO/MLO
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.SetabayLoan.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378

Why Trust Deed Investing Is Used

Why Should you Invest  in Trust Deed Investing Is Used

Generally, trust deed investing comes at a bit higher price than traditional bank loans. The interest rates are higher, making them more difficult to pay back. So why would anyone participate in trust deed investing then? The reasons are abundant, actually.

First, a bank loan can take quite a while to process. With trust deed investing, the loan is quick and the borrower can receive the money more quickly than dealing with all the messy paperwork. Another reason people prefer these types of loans is because they are generally more short-term than bank loans, with the length of most loans ranging anywhere from 1-5 years.

One of the bigger factors people take into consideration when investigating trust deed investing is because they do not necessarily have the credit to qualify for a bank loan. When a bank turns a person down because of bad credit, they often feel they have nowhere to turn. However, with these loans, it makes their dreams of purchasing real estate with a low credit rating very possible.

Banks also consider the worth of the property when deciding to lend to a borrower. While trust deed investors also consider the property, they do not weigh it as heavily. Thus, these types of loans are easier to obtain. 

Dennis Dahlberg

Setabay Loan

23335 N 18^th Drive Suite 120

Phoenix AZ 85027

623-582-4444

dennis@setabayloan.com

www.setabayloan.com