What do I need to know about Trust deed investing?

Trust deed investing does have many certain alluring qualities. For those that have a firm grasp on what they are doing, trust deed investing can make a very sizable return on your investment. Like most things, it is important to understand exactly how it works to become successful. Let me outline some of the major points of trust deed investing so that you can decide for yourself if it is for you.

First of all, it is vital that you understand what a deed of trust is. A deed of trust is a real estate

transaction that is used in some states use instead of mortgages. This involves three different parties. They consist of a lender, a borrower, and a trustee. As you would expect, the lender gives the borrower money. In exchange the borrower gives the lender promissory notes, or a signed document that promises to pay a certain amount by a certain date. The borrower will also transfer real property to a third-party trustee. If the borrower does not pay the loan and defaults, the trustee can then take control of the property.

Most of the time, the trustee is a title company. There are two ways this is handled, dependent upon the state that you live in. One way is to actually transfer the legal title to the trustee. Another way is where the trustee has only a lien on the property. Trust deeds usually come with a “power-of-sale” clause. This allows the trustee to sell the property without having to get a court order. By doing this, those who are interested in trust deed investingsecure their investment.

Setabay Loans

Dennis Dahlberg

23335 N 18th Drive Site 120

Phoenix AZ 85027

www.SetabayLoan.com