In the United States, there are two types of real estate
transactions, true mortgages and deeds of trust trust deed investing. This
type of investing differs from a true mortgage in that there are always three
parties involved, the bank or lender, the borrower and a third party who is
investing his/her personal capital in the deed of trust. If you want an
investment that pay for college, investing in deeds of trust can be an opportunity to earn high interest rates with
low investment risk.
During trust deed
investing, an investor acts as a third party during a home purchase
transaction. The bank loans the money, the borrower purchases the property and
repays the loan, and the investor, or trustee holds the deed to the property.
The trustee holds the deed as security to ensure the repayment of the debt to
the lending bank and the bank pays the trustee interest for this service.
Trust deed investing boasts high rates
of returns on investment and can fit almost any budget. An investor typically
earns anywhere between 7% and 12% on trust deed investments. This is
significantly more than any savings bonds, savings accounts, and most stock
options.
Investing in trust deeds is generally
considered to be a fairly safe investment strategy because the investment is
backed by actual real estate collateral. An investor can literally drive by and
see his/her investment. The trustee can also help insure his/her investment in
trust deeds by having property appraisals and working with a licensed broker
for the transaction. Another way to secure the investment is to invest only in
the first position in the deed of trust. The first position ensures that this
trustee will be paid first in the event of a default.
Call your
broker to add trust deed investing
to your child’s college fund portfolio. Start earning higher interest rates
with less risk today.
Level 4 Funding LLC
23335 N 18th Drive Suite 120
Phoenix AZ 85027
623-582-4444
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