A Trust Deed Investment is a Safe Real Estate Investment

A Trust Deed Investment is a Safe Real Estate Investment

By | 2017-07-26T20:41:31+00:00 July 26th, 2017|Trust deed investments|Comments Off on A Trust Deed Investment is a Safe Real Estate Investment

If you want to make a smart and safe real estate investment, you’re going to want to read this trust deed investing introduction. Trust deed investments have existed for a long time, yet many prospective investors do not know much about them. Trust deed investments are just like mortgages except for one difference: there are three parties involved. Apart from a borrower and a lender there is an investor.
A trust deed investment is safe because the risks are identifiable. Stocks, bonds, and mutual funds have been popular investments in the past but due to the current economic climate, that is changing quickly. Those who do not want to both with the tumultuous nature of the stock market have chosen to invest in trust deeds. When structured properly, trust deed investments have relatively low risks since the loan is secured by real estate. What that means is that, if the borrower defaults on the loan, the property becomes yours and you can sell it to recoup your initial investment. Many investors enjoy the relatively minor effort needed to manage the investment once their money is in place.
Because of the flexibility available to them, trust deed investors have a lot of control over their investments. Unlike a traditional lender, the interest rates can be negotiated and you can make sure that you are involved in the sort of projects you are interested in. It’s simple—you make an investment, decide what the interest rate will be and then collect your payments every month. Trust deed investments offer an attractive yield on invested capital. If the borrower defaults on the loan, the property goes to you and you can sell it to recoup your investments.
Unlike traditional lenders, hard money lenders can offer partnership and communication in your investments and projects. Communication, integrity, and timeliness is most important. Finding an alternative lender to handle these investments doesn’t have to be difficult. Find out more about HML Investments here.
Many traditional lenders are not equipped to provide bridge loans on strong collateral, even to customers who would have qualified previously. As such, trust deed investors can now provide private loans secured by quality collateral to strong borrowers with less risk than afforded previously. Borrowers find funding, trust deed investors make a profit. It’s a win/win.

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.