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Wednesday, April 29, 2020

How Does Trust Deed Investing Work?

In the United States, there are two types of real estate transactions, true mortgages and deeds of trust sale. In a true mortgage sale, there are two parties involved, the bank or lender, and the borrower. The borrower is given the deed to the property he/she is purchasing and the lender has very little security or collateral. A second form of real estate investing is called 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.

When investing in deeds of trust, make sure you know

your options and how to minimize your risks and maximize your rewards.

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.

Funding Your Retirement with Trust Deed Investing

(With an ever increasing cost of living, longer life expectancies, and more medical bills, US citizens need to have more saved for retirement than ever before. One investment strategy that can help you earn high interest rates is trust deed investing. Learn more about it here and decide if it is a good method to help diversify your retirement portfolio.)

Smart investors save for retirement. They start early, diversify their funds, and manage their money carefully to ensure that they will be able to live well after they stop working. You are probably doing all the right things, but are you saving enough? According to the Social Security Administration, the average retiree needs at least 70% of their pre-retirement income during their retirement years. If you plan on travelling, eating out, shopping, golfing, and engaging in any other number of activities that are expensive, it is possible that you will need almost 90% of your pre-retirement income. Social Security accounts for about 40%, leaving you with anywhere from 30 to 50 percent to make up for.

Investing money while you are still working is the best way to prepare for retirement. Having a well-rounded and diversified portfolio is one of the best ways to make sure that your money is always working for you. One investment that most people take advantage of is a stock investment. With this type of investment an investor purchases parts, or shares, of a company. When the company makes money, so does the investor. If the company loses money, so does the investor. The risks and rewards of stock investing varies by the specific companies the investor chooses to invest in. There is not insurance against loss. To help make this investment less risky, investors can do their research. Make sure they know about the finances of the company they are investing in and choose companies that show stability over time.

Another type of investment is bonds. There are a variety of different types of bonds that can be purchased from the United States government. Depending on the bond type it takes a specified amount of time to mature. Once the bond is matured the government will purchase it back for a guaranteed interest rate. Bonds are extremely safe investments as they are backed by the U.S. Department of Treasury. The main downfalls of bonds are that they earn fairly low interest rates, usually in the single digits and often as low as 2%, and they take a significant amount of time to mature. Bonds are a safe investment but don’t offer very high or timely returns.

A third type of investment that is not as common as stocks or bonds is trust deed investing. Investing in deeds of trust is a type of real estate investment. Basically the investor acts as a third party during a mortgage transaction. He/she buys an interest in the loan that a lender is giving to a borrower. The lender then pays the trustee interest to hold the deed to the property on the lender’s behalf. Interest rates on trust deeds can be as high as 12% and are usually at least 9%.

How Trust Deed Investing Helps the Lender

In order to understand why the bank would engage in trust deed investing, it is critical to understand the two types of mortgages in the United States.

The first type of mortgage is a true mortgage wherein the only parties involved are the bank and the borrower. Either the borrower or the lender holds the legal title to the property they purchase. If the borrower defaults on mortgage payments, the bank has to take judicial action against the borrower by actually suing them in a court of law, regardless of who holds the title. Only after the court has ruled in their favor can the bank take possession of the property via foreclosure. This is a lengthy process and can get quite expensive.

In trust deed investing, the trustee holds the legal title to the property and is paid interest by the bank for doing so. In the event of a default in payments by the borrower, the trustee can take legal possession of the property via foreclosure without judicial action. The bank can then sell the home quickly to recover their investment as well as the investment of the trustee. This is a much shorter foreclosure process and saves the bank money in the event of defaulted payments. Since this makes foreclosure easier and more profitable for the lender, it is in the bank’s interest to secure their mortgage loans with a deed of trust.

With high interest rates and low risk, trust deed investing

is a great way to supplement your retirement savings to earn you that extra 50%.

As with any investment, it is best to use the assistance of a broker to help navigate the ins and outs of investing in deeds of trust. A broker will help you with the specific laws in your state related to deeds of trust and will help you maximize your return and minimize your risk.

Benefits and Downfalls of Investing in Deeds of Trust

Trust deed investing is a specific type of real estate backed investment with a high rate of return. Like any investment strategy is has a specific set of risks and benefits that are crucial to understand before investing your money.

Investing in trust deeds is a specialized type of real estate investing. Unlike doing a fix and flip, or purchasing a rental property, trust deed investing is a much less involved type of investment. In order to understand the basics of investing in deeds of trust, it is necessary to understand the types of mortgages available in the United States. There are true mortgages and trust deed sales.

The first type of mortgage is a true mortgage. This is a real estate transaction involving two parties, the borrower and the lender. The borrower chooses a property to purchase and the lender funds the purchase. The borrower then repays the lender each month including interest for a period of time, usually 30 years. The legal deed to the property goes either to the borrower or lender, depending on state laws and guidelines. If the borrower defaults on payments, the bank must begin the process of judicial foreclosure. This basically means that the lender must sue to borrower in a court of law to prove that the loan is in default. Once the lengthy legal process is over, the lender can sell the property as a foreclosure to attempt to recoup funds.

A second type of real estate loan is a deed of trust sale. In this sale there is still the borrower and the lender who have virtually the same roles. A third party is an investor called a trustee. The trustee purchases an interest in the loan and is given the deed to hold on behalf of the lender. The lender pays the trustee a relatively high interest rate (usually around 9%) to hold the deed. Payments are received each month as an additional sources of income. As long as the borrower is current on payments, there is no more work for the trustee. If the borrower defaults, the foreclosure process is much faster. The trustee holds the legal deed to the property and can sell it as a foreclosure on behalf of the lender. The lender does not have to sue the borrower, it only has to prove the borrower has defaulted to the trustee.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About: 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 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
© 2019 Level 4 Funding LLC. All Rights Reserved.

Diversifying Your Portfolio with Trust Deed Investing

Most investors know about their investment options regarding stocks, bonds and some real estate transactions. One lesser known strategy is investing in trust deeds, a specific type of real estate investment that is low risk and high return.

Smart investors know that having a well-rounded portfolio is a key component of successful investing. One investment that most people take advantage of is a stock investment. With this type of investment an investor purchases parts, or shares, of a company. When the company makes money, so does the investor. If the company loses money, so does the investor. The risks and rewards of stock investing varies by the specific companies the investor chooses to invest in. There is not insurance against loss. To help make this investment less risky, investors can do their research. Make sure they know about the finances of the company they are investing in and choose companies that show stability over time.

A third investment that can help diversify an investor’s portfolio is known as trust deed investing. In this type of investment, the investor purchases an interest in a mortgage that is given by a bank. The borrower purchases a property, the bank lends money, and the investor (known as the trustee) invests money for the privilege of holding the financial deed to the property. The trustee holds the deed for a specified amount of time from months to years, depending on the terms of the investment. As long as the trustee holds the deed, he/she earns interest from the bank and has almost no responsibilities as long as the borrower is current on payments. Interest rates on trust deeds are between 9 and 12 percent.

Minimizing Risk When Investing in Deeds of Trust

Like all investments, investing in trust deeds does have 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.

Using Trust Deed Investing to Fund Your Child’s Education

Trust deed investing is a little known high yield investment opportunity. With rates of return as high as 12%, it can be a great way to fund your child’s college education.

As a parent, your child’s future is always on your mind. One of the biggest concerns for most parents is how to pay for college. With rising tuition costs, books, housing, and other details, the cost can really add up. In fact, reports from the College Board indicated that the tuition cost alone can be upwards of $20,000 for a four year degree. This is for in-state tuition. This number rises dramatically with out of state schools and private institutions. For most families, this is a number that seems out of reach. However, with the right investments you can grow your money in such a way as to make paying for your child’s college education an attainable goal.

One type of investment that many parents take advantage of is bonds. There are a variety of different types of bonds that can be purchased from the United States government. Depending on the bond type it takes a specified amount of time to mature. Once the bond is matured the government will purchase it back for a guaranteed interest rate. Bonds are extremely safe investments as they are backed by the U.S. Department of Treasury. The main downfalls of bonds are that they earn fairly low interest rates, usually in the single digits and often as low as 2%, and they take a significant amount of time to mature. Bonds are a safe investment but don’t offer very high or timely returns.

Another investment that many parents use is a stock investment. With this type of investment an investor purchases parts, or shares, of a company. When the company makes money, so does the investor. If the company loses money, so does the investor. The risks and rewards of stock investing varies by the specific companies the investor chooses to invest in. There is not insurance against loss. To help make this investment less risky, investors can do their research. Make sure they know about the finances of the company they are investing in and choose companies that show stability over time.

A third investment that can help earn funds for college at a very high interest rate is known as trust deed investing. In this type of investment, the investor purchases an interest in a mortgage that is given by a bank. The borrower purchases a property, the bank lends money, and the investor (known as the trustee) invests money for the privilege of holding the financial deed to the property. The trustee holds the deed for a specified amount of time from months to years, depending on the terms of the investment. As long as the trustee holds the deed, he/she earns interest from the bank and has almost no responsibilities as long as the borrower is current on payments. Interest rates on trust deeds are between 9 and 12 percent.

Tuesday, April 28, 2020

The Bank’s Role in Trust Deed Investing

A common question about trust deed investing is what is in it for the lender. This is a valid question because banks generally don’t like to give away 12% interest rates for free. In order to understand why the bank would engage in trust deed investing, it is critical to understand the two types of mortgages in the United States.

The first type of mortgage is a true mortgage wherein the only parties involved are the bank and the borrower. The borrower holds the legal title to the property they purchase. If the borrower defaults on mortgage payments, the bank has to take judicial action against the borrower by actually suing them in a court of law. Only after the court has ruled in their favor can the bank take possession of the property via foreclosure. This is a lengthy process and can get quite expensive.

Investing in deeds of trust helps the lender protect their collateral while earning money for the trustee. The trustee’s investment is also protected by the actual physical real estate.

Investing in trust deeds is a high interest, low risk investment strategy. If the borrower pays on time, the investor literally does nothing other than collect interest. If they borrower defaults, the property that the borrower is making payments on helps to secure the trustee’s investment. This is perhaps the greatest benefit of trust deed investing. The investment is actually backed by physical collateral that the investor could literally drive by and see. The investor can also do a number of things beforehand to help secure his/her investment. The investor can use credit scores of borrowers to determine the riskiness of a particular loan. In addition, the property will be appraised to ensure that it can be sold to recover the investment if necessary. A further investment safe-guard is the requirement of all borrowers to obtain sufficient hazard and fire insurance. This protects the investor in the event of the property being destroyed.

If investing in deeds of trust sounds like a good investment opportunity to add to your portfolio, contact a broker that specializes in real estate investments. A broker can help you make the best investment decisions and help you start earning high interest rates with trust deed investing.

The Basics of Trust Deed Investing

Many smart investors incorporate the strategy of investing in deeds of trust as an easy and relatively low risk way to help grow their retirement accounts. With rates of return as high as 12% and real estate collateral, investing in trust deeds can be a good addition to a well-rounded investment strategy.

Trust deed investing is an investment tool that can help many people reach their monetary goals for retirement. It is a useful addition to your retirement investing strategy because it is relatively low risk and low maintenance with a high rate of return. Before deciding to invest in deeds of trust, it is important to understand the basic types of mortgages available and why trust deed investing is a win/win situation for all parties involved.

The first type of mortgage is what is known as a true mortgage. In this type of real estate transaction, the borrower purchases a property with funds that are supplied by a bank or other lending institution. The legal and equitable deeds to the property both belong to the borrower as the owner of the property. This can pose an obstacle to the lender should the borrower default on his/her loan. Since the borrower holds the deed to the property if he/she defaults the lender must go through what is known as the process of judicial foreclosure. This involves the lender obtaining a court order before the home can be sold without the borrower’s consent. This can be a lengthy and expensive process for the lender.

The second type of “mortgage” situation involves a deed of trust. In this lending situation, there are three parties involved, the lender, the borrower, and a third party known as the trustee. The trustee purchases a deed of trust from the lender which gives him/her the right to hold the legal deed to the property on behalf of the lender. Deeds of trust can be purchased for anywhere from $1,000,000 and up. Once the trustee buys the deed, he/she is said to be investing in deeds of trust. Like any investment, the trustee earns interest from the lender. The interest rates earned on deed of trust investments are typically higher than other types of investments. Some investors earn as much as a 12% rate of return on their investment. As long as the borrower continues to pay his/her loan to the lender, the trustee earns money for the term of the investment with no further work.

Trust Deed Investing and Default

The most common question people have before investing in trust deeds, is what happens if the borrower defaults. The trustee has a few options at this point, depending on what state the property is located in.

One option is that the trustee can assume payments and takeover the property. Since the trustee owns the legal deed to the property, he/she can take over payments on behalf of the borrower and the real estate transfers entirely to the trustee. It can now be lived in, rented, or sold as the trustee sees fit.

A second option that is generally less work for the trustee is that the trustee can begin the process of non-judicial foreclosure on behalf of the lender. The lender provides the trustee with proof that the borrower has defaulted on the loan and since the trustee holds the legal deed to the property, he or she can begin the process of selling the property on behalf of the lender without a court order. This is less expensive for the lender than judicial foreclosure. Once the property is sold the lender recoups its funds from the sale proceeds. Once the lender’s debt has been paid, the trustee’s initial investment is also returned.

Once you have decided to invest in deeds of trust there are

several ways to reduce your risks and maximize your returns.

One key feature of a solid trust deed investment to keep in mind is to always hold the first deed of trust on a property. The first deed holder is the investor who is paid first in the event of a default. If you are the second or even third trust deed holder you are putting your investment at a higher risk than the first deed holder is. You can also help minimize your risk by investing in more credit worthy borrowers and modifying the length of your investments. There are lots of different options depending on what state the property is in. Talk with a broker to help navigate the various ins and outs of trust deed investing.

What Is Trust Deed Investing?

Investing in deeds of trust is a little known but very effective investment strategy for real estate investors. With high rates of return and real collateral, investing in trust deeds is an easy, and generally low risk way to earn money.

In the United States, there are two types of real estate transactions, true mortgages and deeds of trust sale. In a true mortgage sale, there are two parties involved, the bank or lender, and the borrower. The borrower is given the deed to the property he/she is purchasing and the lender has very little security or collateral. A second form of real estate investing is called 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. For the savvy investor, investing in deeds of trust can be an opportunity to earn high interest rates with low investment risk.

Very few investors know about this investment opportunity related to investing in deeds of trust in real estate transactions. 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 legal title to the property and the borrower holds the equitable title 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 account and most stock options. In addition, 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.

Benefits of Trust Deed Investing For the Lender

As discussed above, in a true mortgage, the borrower holds the deed to the property. If the borrower defaults, this can become messy for the lender. Since the borrower holds the deed, the lender actually has to take judicial action against the borrower the borrower defaults. The lender sues the borrower for the deed to the property. As with any legal action, this takes time and costs money. There is also always the risk that the court will side with the borrower, leaving the lender with no recourse and a very large investment lost. Once the lender has the deed and legally owns the property, the lender sells it, usually for a loss, causing the lender to spend money twice. Once on the law suit, and once in the form of unloading a foreclosure property.

In a trust deed investment, the trustee holds the deed to the property. The trustee has invested a certain amount of money to hold the deed and the lender pays the trustee interest for this service. In the case of trust deed investing, if the borrower defaults on their loan, the trustee sells the property on behalf of the lender. The lender does not have to sue the borrower or wait for a judge to make decisions about who has the right to sell the property. There is also no risk that a judge could side with the borrower. The sale is generally quicker and results in a smaller net loss for the lender. After the sale, the trustee retains his/her initial investment as long as the property was not sold for a loss. The lender also gets their investment back.

Investing in deeds of trust is usually a win/win situation for the lender and trustee. The trustee earns interest while the lender protects their collateral.

If you are interested in learning more about trust deed investing, contact a local broker to find out different options in your state. A broker can help you navigate the trust deed world to find the right investment for your budget. A broker will also have a deeper understanding of specific laws and regulations in your state. Once you a ready to take the plunge, investing in trust deeds can be a very secure investment strategy to help grow your personal wealth.

Trust Deed Investing and You

Savvy investors can earn high returns with minimal risks by investing in deeds of trust. Before you take this next step in your investment portfolio, learn the basics of investing in trust deeds to determine if they are a good investment for you.

One little known but high return investment strategy called trust deed investing can be a crucial investment for experienced investors to grow their investment portfolio. Investing in deeds of trust is a specific type of real estate investment wherein the investor, or trustee, invests money as a third party in the mortgage process. The bank or lender loans money to the borrower, the borrower repays the money to the bank, and the trustee invests money directly to the lender in order to act a third party intermediary and hold the legal title to the borrower’s property. The lender then pays the trustee interest for holding the title. Interest rates a generally higher than most other investments at anywhere from 7 to 12 percent.

Not only does trust deed investing yield a high rate of return, it is also a rather low risk investment. The monetary investment is backed by the actual real estate purchased by the borrower. An accurate and thorough appraisal ensures that the property is actually worth the money that has been invested in it. If the borrower defaults the investor’s funds can be recovered by the sale of the property. In some cases, the investor can even take over payments from the borrower and acquire the property without an additional sale. This way there are no escrow fees, additional inspections, or closing costs.

Now that you know the benefits of investing in trust deeds, you are probably wondering how exactly it works and what your role as the investor is. As the investor, you invest money to hold the legal deed to the property. You do not live at the property nor do you have to maintain it, the borrower does this and he/she holds the equitable title to the property. If the borrower makes payments on time, all the trustee has to do is earn interest from the bank for the length of the investment term. Investment terms can cover anything from a few months to several years.

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 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.

Why Get Involved In Trust Deed Investing?

It seems that people only get creative with their money when times are tough. They transfer money here, shuffle some there, maybe participate in get-rich-quick schemes, etc. They’ll do anything to make ends meet. But what if you have a little extra money? Why not make that grow, too? Have you ever thought about trust deed investing? If you haven’t, it might be time to do just that.

Here’s how it works:

Basically, you decide to invest your money in someone who needs a loan for property or real estate. This person is likely looking into trust deed investing because they are looking for a shorter loan, or (beware!) cannot qualify for a bank loan. This can be a great way to watch your money grow, but do be careful of the risk involved. You provide the borrower with the money they need to purchase or refinance their property and a Promissory Note is written up so that all the legal matters are on paper and out in the open. Generally, you can charge higher interest rates than a traditional bank loan and end up helping the person while making money yourself.

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.

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.

What Borrowers Take Advantage of Trust Deed Investing?

Since interest rates for trust deed investing can be very expensive (some even in the double digits!) you have to be wondering how anyone can afford to borrow at this rate. Usually, the borrowers for these types of loans are not your traditional borrowers. They are savvy in the real estate market and have a solid plan and understanding of their goals. Most properties purchased with these funds are fixer-uppers and the borrower plans to receive a high return on their investment when all is said and done. They are willing to pay high interest rates to avoid the hassle of the bank, get their money as quickly as possible, and pay for a shorter term on the loan. Likely, they already have a ballpark figure of what the property will go for in the end, so the interest rates don’t seem quite as daunting to them. They can enhance their return on investment by eliminating the bank and getting things done quickly. In many ways, the borrower can benefit from trust deed investing as much as the lender/investor, if not more.

Does My Portfolio Need Deed of Trust Investing ?

If you are looking for a new way to really make your portfolio stand out and be the best it can be, then we think you should start looking at deed of trust investing Arizona.

With deed of trust investing Arizona, you can make money with the lowest kind of risk possible. That’s right, you get a guaranteed return on your low risk investment. That is music to everyone’s ears- but not everyone gets to hear that if they don’t look into trust deed investments Arizona.

Deed of trust investing Arizona is much different than other kinds of investments. For one, this is low risk. Not a lot of effort on your part is needed. You practically get to sit back and watch the money roll right in. How nice for you and your pockets! Trust deed investments San Diego is a great way to add an additional stream of revenue to your income. You will find that part out quickly.

Moreover, trust deed investments Arizona are so much better than the soft traditional bank loans that people can hardly even get anymore. Banks have really kept their purse strings tight lately, and who can blame them? No need to be furious about this either because this makes trust deed investments Arizona that much better for you. You get to help out people in need of money to close their real estate deals.

Additionally, no matter what you decide to do, non performing notes Arizona or performing notes Arizona, you always have an asset to hold on to. There is no worrying about whether or not you might see a return from this investment. With trust deed investing Arizona you always have a form of asset and you never have to stress about it.

Don’t sit around and wonder. Go ahead and look into making your portfolio great with your trust deed investments Arizona today.

Is Trust deed investing Arizona something I should do?

It can be scary trying a new thing. Imagine what it was like for the first person who decided to make cheese or how scared –but excited!- you were to try your first roller coaster. You took a small risk, but you had so much fun that it paid off in the end, didn’t it?

Now imagine that with trust deed investing Arizona.

With trust deed investing Arizona, you have a great way to take a low risk and create a brand new stream of revenue right into your pocket. How great is that? Banks, you might have noticed, have really tightened up when it comes to loaning out money, so people aren’t getting the soft money traditional loans for their real estate as often anymore and that’s where trust deed investing Arizona comes in.

Take a look around the deed of trust investing Arizona world and you will see how great it can be for you. If you are looking for low risk with a guaranteed return then you have found it. Additionally, with deed of trust investing Arizona, you hardly have to do a thing. Invest your money and get your returns. That’s about it. You never have to worry about whether or not you will see a return because no matter what, you will always get something whether it is the title to a new property that you can sell or fix up or the money and interest you were expecting.

You also get to choose if you want a performing note or a non performing note Arizona. Whichever one you get is up to you, but we love that non performing notes Arizona are sold at a huge discount and always result in a great return, so don’t overlook it!

Whichever you choose to do trust deed investing Arizona can be right for you and your portfolio and your wallet! Do not forget about it when you’re looking to make an investment.