Make Passive Income: Trust Deed Investing Tips

Make Passive Income: Trust Deed Investing Tips

By | 2017-07-14T06:18:11+00:00 July 14th, 2017|Trust deed investments|Comments Off on Make Passive Income: Trust Deed Investing Tips

Make Passive Income: Trust Deed Investment Tips. When you invest in trust deeds you essentially become the bank. By charging interest on the loan, you are making money the same way banks make their money. Trust deed loans are collateralized by real estate and secured by a deed of trust. The rates and terms are flexible and, when you work with an experienced broker, you can find a great investment that will provide you with a consistent stream of passive income. Before you start trust deed investing, there are a few things you should know:

Conservative LTV

The more equity a property has, the lower the risk will be. Since trust deed investments are collateralized by real estate, it is important to not go over about 60% LTV.

Stay close

You will feel more comfortable investing in properties that are in your area. Understanding and knowing your community will help with your investment. You will feel that you have less control on your investment if the property is far away.

Know your options

Some investors choose to personally source individual loans and lend money directly to real estate investors while others choose to purchase loans backed by real estate from brokers or invest in a fund that invests in trust deeds. Many individual investors choose to use funds and brokers because it gives them access to professional real estate investors that are investing on their behalf based on the specific investment criteria the individual investor has set.

Find a team

You want to work with a team who values open, two-way communication. Communication, integrity, and timeliness are important when it comes to finding a broker. Finding a broker to handle and help you navigate your trust deed investments doesn’t have to be difficult. Find out more about HML Investments here.

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Bonus Real Estate Tips From Yanni Raz

About the Author:

Yanni Raz is The Founder and CEO of HML Investments, with over 15 years in the real estate and hard money lending industry, Yanni is an expert in real estate investing, trust deed investments and more.