Setabay Private Hard Money Lender: trust deed investor

Monday, November 14, 2016

The market is fickle but trust deed investing is not as scary as you thought.

Sometimes your plans will fall through and you have to deal with the consequences. In business, nothing is guaranteed. This goes double for the real estate business. Trust deed investing, when done correctly, can be lucrative when done safely and correctly. That said, there are hundreds of unforeseeable variables that can cause loss, as well as, tremendous success.

One of the best classes that entrepreneurs in this market could benefit from is philosophy. The primary focus, in the opinion of this writer, should be on stoicism. Not the whole dreary outlook on life thing, that is extremely depressing. Stoics may have gotten some things wrong, but the thing they got right is coming to terms that you cannot control the outcome of anything, and you should not be upset over that.

Trust deed investing can allow you to make a solid profit if you are able to read the market well. That being said, the market constantly changes. One year you could be receiving loan payments on a beautiful property with positive capital appreciation. The next year you could have what seems like a never-ending dry spell with no luck. But, alas, everything will be okay.

This happens all too often in the commercial real estate world. We are still living in the wake of one of the worst recessions in the United States. But, eight years later the housing market is making a strong comeback.

What makes trust deed investing a safe option for you?

One of the best things that trust deed investing provides you with a certain level of safety wen you are thinking of taking on. If you plan on borrowing money for your investment the loans that you take out are short-term. If you do your due-diligence and research you will not have to worry about the strength of your loan.

Short-term is key when you are investing. Usually, you will be able to recoup your investment within two to three years. With trust deeds, you typically are able to get a 9%-12% annualized return.

Being a lender has great perks. If something were to happen you most likely will still be covered for the loan that you approved. For example, for new homeowners are required to purchase insurance for their property. Stuff you already know, however, in regard to trust deed investing your name, as the lender, is on the policy. This means that even if the something were to happen that was covered in the policy, the lender would still be able to receive regular payments; even if the value decreases.

“So I don’t need to worry about trust deed investing too much do I?”

No, that is not what we are saying. You should always do your research when you are taking on any investment, especially when it comes to trust deed investing. As stated previously, there are many different variables that need to be taken into consideration. Could you potentially lose money? Yes, that could happen. Could you make a very nice return on your investment? Absolutely, but as the armed forces say, you need to keep your head on a swivel. Make sure you check the details always.

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Friday, December 19, 2014

Minimizing Risk When Investing in Deeds of Trust

Like all investments, investing in trust deeds does has an element of risk. The main risk for the trust deed investor is that the borrower will default on his/her loan. If the borrower stops making payments, it is then the responsibility of the trustee to sell the property on behalf of the lender. This process is called non-judicial foreclosure. Once the property is sold, the lender takes back its initial investment. If there is any money left over, the trustee is then paid.

If you are interested in investing in deeds of trust, there are a number of steps you can take to insure that you are making a safe investment. First and foremost, make sure that you work with a reputable, established lender. A bank or mortgage broker that has been around for a while with a good reputation doesn't give out loans to borrowers who are not able to repay them. Of course there are always exceptions, but generally reputable lenders are more selective with their loans than lenders who are just starting out.

Secondly, when you are investing in trust deeds, you can help insure you money against loss by having a fair and accurate appraisal before the borrower purchases. If the property is appraised well then you can be confident of its value moving forward. Then if the borrower does end up defaulting on the loan, you can sell the property for a high enough price to pay yourself back. This is perhaps one of the greatest benefits of trust deed investing because your investment is backed by real estate that has real monetary value, not just company profits like a stock. You can use the real estate to recoup your funds if necessary.

Trust deed investing is a great investment tool to earn high interest rates with little risk of losing money because your investment is backed by real estate.

Make sure to talk with a broker before you attempt investing in deeds of trust. A broker can work with you to find the best loan lengths, terms, and interest rates. He or she can also help you navigate the ins and outs of the specific laws and regulations in your state.

Dennis Dahlberg

Level 4 Funding LLC

23335 N 18^th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Setabay Private Hard Money Lender